Research shows that the asking prices on almost half of all the properties in 26 US markets, Florida in particular, are being cut by sellers.
Now, real estate investors from Asia, Europe, the Middle East, Russia and South America are finding bargains as a result of the price cuts.
California based online real estate brokerage ZipRealty believes the price cuts on 47.8% of the housing inventory tell only part of the story, according to the firm 25% more sellers have cut their prices this year than last year, and have cut prices twice in most cases.
The median reduction was $19,725 and this was 7.25% of the list price on average. Florida sellers have been wielding the heaviest knife, with Miami, Jackonsonville and Orlando sellers cutting double digit percentages off their asking prices. Miami saw the biggest discounts, with sellers slashing an average 12% off their asking prices. Discounted properties in Orlando are a big hit in the UK.
‘The summer home selling season never kicked in this year, leading anxious sellers to slash prices,’ said a statement from Zip Realty.
Florida is currently seeing a large number of foreign buyers, attracted by the bargains. Foreigners have always been high in Florida, but the gap between Florida and other states has widened because prices are so low.
Foreigners now make up for 10% of the market according to a recent report by the National Association of Realtors, but this is spreading fast according to experts. Marketing campaigns are now targeting foreigners specifically and realtors are offering heavily discounted viewing trips.
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