Florida homes are selling at a reduced price
The US housing market is experiencing a slowdown in activity. And the slowdown is occurring even in historically very dynamic regions. Among the latter are homes in Florida, most of which have been on sale at a discount. According to real estate agencies, the local market has 202 thousand houses for sale. Sellers are offering 47 thousand of them at a reduced price.
Over the past 3 years, Florida’s residential property sector has seen high demand. The stimulus for the market boom was the pandemic. As a result of its impact, many people from other states moved to the region. The increase in population affected the local property sector. This led to a sharp rise in property prices. Given these trends, experts see the current decline in value as a normal market adjustment process.
It is also worth noting that another factor affects prices in Florida. The cost of home insurance in the state has risen by 102% over the past three years. The level of rates has proved too high for many property owners. As a result, they want to get rid of expensive homes as quickly as possible. Such owner sentiment plays into the hands of buyers. They can negotiate a discount and look for sellers willing to give up a significant amount.
Changes in the Florida property market
In the summer of 2023, new rules began to apply to property purchases in Florida. A law was enforced here restricting transactions for several foreign buyers. According to it, citizens of certain countries can not:
1. Buy agricultural land in Florida.
2. Own property within 10 miles of several facilities. These include critical infrastructure, airports, military bases, and others.
3. The law applies to citizens of China, Iran, Cuba and other sanctioned countries.
The rules outlined have changed the process of buying a house. Real estate agents are now obliged to apply to the authorities to obtain information on citizenship. There is also confusion about critical infrastructure facilities. They are not usually shown on the site plan. It is only possible to find out about them through practical means.
Where it is profitable to buy a home in the US
In addition to Florida, the San Francisco market is also experiencing a downturn in the property market. According to the Compass portal, the average cost of an apartment in the city centre is around USD 800,000. This figure corresponds to 2014 prices. In other areas of the metropolis, the cost of objects is higher – more than USD 1.2 million.
Analysts explain such price differences within a city by the “pandemic effect”. The central part of San Francisco is home to many large IT companies. With the shift to remote working, their employees have refused to live near their offices. As a result, apartment owners have put them up for sale.