The state of Florida has many ways of attracting potential homebuyers…sunshine, no state income tax and lots and lots of second homes ready and waiting to be enjoyed by new owners.
According to Bloomberg News, Florida’s additional bonus to potential buyers…four cities in the top ten cities nation-wide that offer home price cutting deals live in the state of Florida. These cities lead in both volume and size of such price cuts, according to Knock’s recently released Q2 2019 Deals Forecast.
Overall, Knock, a business that helps buyers trade up to their next home, predicts that 75% of current listings nation-wide will sell for -3.5% below the original asking price of the house.
The “best deals” via price cuts tend to be found in the South. Seven of the top ten cities listed below have the greatest percentage of houses that are selling for less than asking prices.
City % Homes Sold Average Discount
At Discount from Original Price
Miami 88.23% -7.15%
Chicago 82.14% -4.9%
New Orleans 80.95% -6.21%
Hartford 79.44% -6.09%
Tampa 78.60% -5.64%
Jacksonville 78.53% -4.94%
Orlando 78.23% -4.79%
New York City 71.95% -5.04%
Cleveland 77.27% -6.16%
Providence 76.89% -5.58%
Knock’s research indicated that the average days on the market totaled 82 days nationally and that 79% of the homes sold nationally were sold for -2% below original listing prices.
According to Sean Black, the CEO of Knock, the second home sector within the overall housing market tends to be the first sector to suffer in a slumping, slower market. No wonder then that Florida cities with all of their second homes are leading other cities in terms of price cuts.
Black told Bloomberg News, “Florida is a popular secondary home destination so it tends to drop faster in a downward market. It’s also losing buyers, both domestically and internationally (especially by the pullback of South American buyers). Everybody needs a primary home. Not everybody needs a second home.”
