Tom Quoted on CNBC about Tax Consequences of Getting Proof of Home Improvements for Tax Purposes

Local CFP, Local CPA, CFP Thomas F. Scanlon of Manchester, CT quoted by CNBC.com on July 5, 2022.

These 5 metros have the most million-dollar homes: If you’re selling, here’s what to know about the tax consequences

PUBLISHED TUE, JUL 5 20227:30 AM EDTUPDATED TUE, JUL 5 20227:39 AM EDT

Kate Dore, CFP®@KATEDORE

KEY POINTS:

*Million-dollar homes are more likely to be found in metropolitan areas on the coasts, according to a LendingTree report.

*If you’re selling a high-dollar property, you may risk triggering a bill for capital gains taxes.

Million-dollar homes aren’t common in the U.S., but you’re more likely to find these properties along the coasts.

That’s according to a LendingTree study that ranked the country’s 50 biggest metropolitan areas by the share of owner-occupied properties worth $1 million or more.

The average share of million-dollar owner-occupied homes in the 50 biggest metros is 4.71%. But in San Jose, California, 52.89% are worth $1 million or more, and in San Francisco, 40.37% are.

Other metros with the highest share of million-dollar properties included Los Angeles, San Diego, New York, Seattle, Boston, Washington, Miami and Denver.

By comparison, places like Buffalo, New York; Cleveland and Pittsburgh had the smallest share of million-dollar homes, representing less than 1% of owner-occupied properties.

Metros with the most million-dollar homes

1. San Jose, California: 52.89%
2. San Francisco: 40.37%
3. Los Angeles: 18.55%
4. San Diego: 13.52%
5. New York: 10.53%

Metros with the fewest million-dollar homes

1. Buffalo, New York: 0.56%
2. Cleveland: 0.59%
3. Pittsburgh: 0.67%
4. Columbus, Ohio: 0.73%
5. Cincinnati: 0.78%

The findings come amid growing concerns about housing affordability as mortgage rates spike. 

The median home listing price nationwide reached a record $450,000 in June, up nearly 17% from the previous year, according to Realtor.com. Many Americans also have less buying power than a year ago, with 30-year fixed-rate mortgages hovering around 6% for so-called conforming loans of $647,200 or less.

Indeed, rising interest rates have cost homebuyers on a $3,500 monthly budget $165,000 in spending power since the end of 2021, a Redfin report found.

Finish reading article and see Tom’s quote >>>