Whopping great wedges of Wonga are being slashed from the prices of US homes for sale as sellers find buyers worryingly evermore elusive (maybe that should read evermore worryingly, both describe the scene perfectly well).
According to US based real estate agent Zip Realty — a firm reported to be highly focussed on overseas buyers — foreign buyers from Asia, the Middle East, Russia and other parts of the (primarily emerging) — world are benefiting from their increasing disposable income in capitalising on great property deals at rock bottom prices from desperate sellers.
Some 47.8% of all US housing stock has had its price cut, and the majority of those houses for sale that have had their prices cut have had it cut at least twice.
The average price cut was $19,165, or 7.25% of the listing price and the heaviest discounts were seen in Florida. Miami sellers have cut prices by 12% on average, the highest discounts of any market. Double digit discounts are also found in Jacksonville and Orlando.
“The summer home selling season never kicked in this year, leading anxious sellers to slash prices,” according to ZipRealty.
Apart from that, the report contained little or no information that we haven’t already heard: Florida has always been popular with foreigners, it popularity has grown relative to other hotspots because out of those hotspots it has been worst hit by distressed stock volume.
A recent report by the US National Association of Realtors, foreigners currently account for 10% of sales, but that the number is growing rapidly. This can be seen in the specialist marketing campaigns including free inspection trips government’s EB-5 visa program.
One example is the new Holywood Hills development, whereby foreign investors are being lured with the offer of a green card as part of the government’s EB-5 visa program.
The 25-storey development between Miami and Fort Lauderdale will include a 397-unit apartment building with luxury facilities, including 24-hour security, concierge services, private parking, a fitness centre and pool. It will also feature 68,000 square feet of retail space and a four-star hotel.
Private investors from France, Israel, Italy, Argentina, Canada, Colombia, Norway and Venezuela have all been among the biggest benefactors of the cheap property in Florida.
“I have never seen such a high concentration of foreign nationals acquiring real estate. Some 80% of the sales in downtown Miami are foreign based. This is unprecedented,” said Peter Zalewski, of consulting and brokerage firm Condo Vultures.
Photo Credits: Christina via Flickr