A comprehensive guide to tax strategy, new construction incentives, resale negotiation power, and the real opportunities behind Phoenix’s year-end market surge.

📌 Table of Contents

1. Why Year-End Is the Strongest Window of the Year

2. Builder Incentives: Why December Is Their Most Aggressive Month

3. Resale Sellers: The Hidden Leverage Buyers Have in Q4

4. Bonus Depreciation & STR Rules: The Tax Strategy Behind the Investor Surge

5. Real Case Studies From the Last Few Weeks

6. Why Phoenix Dominates Year-End Opportunity

7. People Also Ask (FAQ)

8. Summary: Why This Window Is So Rare

9. Schedule a Strategy Call

10. About the Author

1. Why Year-End Is the Strongest Window of the Year

Every December, I release a Year-End Buyer Opportunity Guide for Phoenix — not because the market slows down, but because this is when the biggest wins happen for everyday buyers, high-income earners, and investors.

This year, the alignment is unlike anything I’ve seen in 14 years.

Three major forces collide:

1. Builders must clear inventory before January 1.

2. Resale sellers become dramatically more motivated.

3. Bonus depreciation returns to 100% for 2025.

When these forces overlap, you get the strongest buying environment of the year — something that does not happen in spring, summer, or fall.

2. Builder Incentives: Why December Is Their Most Aggressive Month

Every national builder closes their books on December 31.
That creates urgency you won’t see in Q1 or Q2.

During December, builders:

• Slash interest rates (3s and 4s are common right now)

• Offer their largest incentive packages

• Discount spec homes to clear inventory

• Include upgrades and premium lots at no cost

• Offer major closing cost credits

• Add landscaping and appliances to close deals

• Push to record closings before year-end

This is all because:

• Incentive budgets expire Jan 1

• Corporate reporting deadlines matter

• Inventory taxes reset

• Quick move-ins must be moved

• Year-end bonuses and targets depend on closings

No other month competes with December for new construction deals.

This is why a client of mine recently secured a mid-3% fixed rate—something resale cannot offer and lenders cannot replicate.

3. Resale Sellers: The Hidden Leverage Buyers Have in Q4

Resale becomes its own opportunity category at year-end.

Sellers are suddenly more flexible because:

• Many overpriced earlier in the year

• Homes have been sitting for months

• Job relocation deadlines hit before January

• Carrying costs for the new year are looming

• Investors are offloading underperforming rentals

• Life changes stack up during Q4

This creates leverage buyers don’t realize they have.

Recent example from this month:

A buyer of mine secured:

✔ A brand-new HVAC
✔ A full roof replacement
✔ New flooring
✔ ALL paid directly by the seller
✔ Completely outside lender caps

This was not a credit, not a buydown, not an add-on to the loan.

The seller paid everything post-closing, and the buyer simply scheduled the work.

Deals like this rarely happen outside year-end.

4. Bonus Depreciation & STR Rules: The Tax Strategy Behind the Investor Surge

Two weeks ago, I wrote about investors flooding back into Phoenix. That post sparked the biggest response I’ve had all year.

The reason is simple:

100% bonus depreciation has returned in 2025.

Pair that with:

• STR (short-term rental) material participation rules

• Cost segregation studies

• Phoenix’s rental demand

• The “placed in service before Dec 31” rule

…and you get one of the strongest tax-efficient investment windows in years.

Who this benefits:

• W-2 earners

• High-income professionals

• First-time investors

• Business owners

• Buyers with casitas or ADUs

• Traditional investors

• Hybrid STR/MTR/LTR buyers

This is why CPAs have been calling clients.
It’s why investors are moving quickly.
It’s why I publish this guide every December.

5. Real Case Studies From the Last Few Weeks

These are real examples from this season:

Case Study #1 — Scottsdale STR | $725,000 Purchase

• ~$180,000 accelerated depreciation

• ~$60,000 in tax savings

• Placed in service before year-end

• Builder incentives lowered the rate

Their tax benefit nearly covered their down payment.

Case Study #2 — Buckeye New Build With STR Guest Suite

• $495,000 purchase

• Rate in the 4s

• ~$115,000 depreciation benefit

• STR income in guest suite

• Buyer used tax savings for Roth conversion

A perfect alignment of tax advantage + builder incentives.

Case Study #3 — Phoenix Resale With Massive Seller-Paid Work

• New roof

• New HVAC

• New flooring

• All paid directly by seller

• No credit needed

• No lender cap problems

One of the most powerful resale wins of the year.

6. Why Phoenix Dominates Year-End Opportunity

Phoenix is uniquely positioned for year-end wins because:

• Strong year-round STR/MTR demand

• Expanding corporate relocations

• Consistent long-term appreciation

• Multiple STR-friendly pockets

• Landlord-friendly regulations

• Large new construction inventory

• Buyers relocating from CA, WA, IL, MN, CO

• High investor demand during Q4

Few markets in the U.S. check this many boxes at year-end.

7. People Also Ask (FAQ)

Is December a good time to buy a house in Phoenix?

Yes. December historically offers the strongest buyer leverage of the year due to builder incentives, motivated resale sellers, and year-end tax strategy opportunities.

Why do builders offer bigger incentives at year-end?

Builders push hard to clear inventory before January 1 because budgets reset, corporate reporting is due, and unsold inventory affects financial metrics.

How does bonus depreciation help real estate investors?

Bonus depreciation accelerates years of depreciation into a single year, allowing buyers to greatly reduce taxable income if the property is placed in service before year-end.

Can W-2 earners use STR rules to offset income?

Yes. Under STR regulations, W-2 earners can qualify if they materially participate and the property meets short-term stay requirements.

8. Summary: Why This Window Is So Rare

Year-end creates a unique overlap of:

✔ The strongest new construction incentives of the entire year
✔ The most negotiable resale sellers
✔ The return of 100% bonus depreciation
✔ STR rules benefiting W-2 earners
✔ Deadline pressure to place a property in service
✔ A drop in buyer competition
✔ High investor movement into Phoenix
✔ The ability to structure repairs outside lender caps

This window doesn’t exist in March.
It doesn’t exist in July.
It doesn’t exist in September.

Year-end is where strategy meets timing — and timing multiplies wealth.

9. Schedule a Strategy Call

If you want clarity on:

• How much bonus depreciation you could qualify for

• Which builders have the biggest incentives right now

• Where STRs are allowed in Phoenix

• How fast you can place a property in service

• Which sellers are the most negotiable today

Let’s talk.

➡️ Schedule a call with me here

No pressure.
No obligation.
Just the insight most buyers never receive.

10. About the Author

Eric Ravenscroft — REALTOR®, Real Estate Investor & Financial Planning Professional

Eric Ravenscroft is a Phoenix REALTOR® with 14 years of experience helping families, investors, and high-income earners build long-term wealth through real estate, financial strategy, and tax-efficient planning.
Eric specializes in new construction negotiation, STR analysis, tax planning alignment, and year-end real estate strategy. His insights have been featured in MarketWatch and across industry publications.
He produces monthly Phoenix Housing Market Updates and an annual Year-End Real Estate Opportunity Guide used by buyers across the U.S. relocating or investing in Arizona.