Real estate sellers in the US are cutting the asking prices on almost half the properties available for sale in 26 markets across the country, research has found. As a result an increasing number of real estate investors from Europe, South America, Asia, Russia and the Middle East are coming to the country in the hope of securing a bargain.
But the price cuts on 47.8 per cent of the housing inventory are only the beginning, California-based online real estate brokerage ZipRealty claims. In addition, 25 per cent more prices are being cut than during 2009 and the majority of properties that have been discounted have had their prices reduced more than twice
Currently, the market for foreign buyers in the US accounts for less than ten per cent of the total level of transactions, but experts are predicting that this figure will grow rapidly.
"I have never seen such a high concentration of foreign nationals acquiring real estate. Some 80 per cent of the sales in downtown Miami are foreign based. This is unprecedented," Peter Zalewski, of consulting and brokerage firm Condo Vultures, confirmed.
- Thursday 14 October 2010