Economic news

U.S. sales of houses costing $750,000 or more leap

A deficit of houses, together with brisk economy and high demand have caused home prices in the biggest U.S. cities rise above $1 mln, diminishing customers’ worries of the lower benefits from a high-priced real estate deriving from Trump’s tax changes, data reveals.

House sales costing $750,000 or more have leaped by double digits during each of last three years, closings figures from for 30 of east and west counties demonstrate.

Sales of homes lower than $750,000 decreased over the last two years because of small number of houses costing $500,000 and less, and generally sales were dragged down by the bigger market size of low-price end, the data says.

Considering that the Trump’s tax revamp relates to houses aimed to be sold for more than $750,000, and the data showing that generally sales dropped means the change to tax cannot be the root of the problem.

The introduced law stops mortgage debt deductibility at $750,000 and yearly taxes on property at $10,000. House sales were anticipated to suffer as less customers would be allowed to use mortgage interest and property deductions for tax payments.

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