December is a busy month for real estate transactions where contract signings are seen to jump about 10 percent on average, with buyers and sellers taking advantage of lower price and tax incentives.
The holiday season which usually makes up Thanksgiving to New Year's Day - sees fewer deals at $1 million and higher, compared to the peak months of May and June. The following months are even worse, with volume falling below December's numbers, The Real Deal news reported.
The end-of-the-year price cuts drive buyers to take the tax advantages. And buyers who finance their purchase will benefit sooner from deductions they will get before January. And sellers who have experienced losses can lower their tax bills by logging gains from the sales of real estate the same year.
Many of the real-estate agents this holiday season are going to have some gifts overtime.
With fewer listings for sale, many last-minute shoppers hunt for bargains, while real estate buyers take advantage of tax benefits for year-end planning. For real estate agents, who may have gotten a six-digit commission, a vacation is something they can easily afford.
"This has been an active year, and it's pushing through to the end," said Jonathan Miller, a New York real-estate appraiser who knows well that the flourishing real estate activity often occurs in early December, in an effort before companies close for the holidays.
According to the Wall Street Journal news, real estate transactions in the second week of December rose to 10 percent in signed contracts from the previous week, followed by a 5 percent bump in closings. "It's sort of like a second wind from the crazy summer activity," said Javier Vivas, an economic-research analyst. The jump in activity is fueled by a wave of price cuts and new listings in November and a fear of slow activity in January through the end of February which is slower by about 10 percent to 20 percent than in December in most markets.
