04-27-2024, 02:59 PM
(04-26-2024, 09:39 PM)taylortbb Wrote:(04-25-2024, 10:26 AM)tomh009 Wrote: It does look like a significant (but not massive) number of owners have decided that those new condos weren't a great purchase after all.
I suspect the current spike in listings is a result of the proposed capital gains inclusion rate increase. Anyone who sells within the next two months will likely save tens of thousands of dollars in taxes if they've held since 2019 or earlier.
The new higher capital gains rate only kicks in after $250K in gains (and appreciation of primary residences is not taxed, of course) so a $10K savings would require the unit to have appreciated by something like $370K; that amount would result in $20K additional taxable income and something like $10K in taxes. I don't think there are many investment condos that have appreciated that much. Maybe duplex/triplex houses, but I don't think it would significantly impact the number of listings at the moment.