The Real Deal Miami

“Price reduced” is the new normal

October 05, 2010 10:30AM

The percentage of homes with price reductions in Palm Beach County has
risen to 26 percent of the market, up from 22 percent at the beginning
of the year, according to data from Trulia. In Broward County, that
number went up to 18 percent from 16 percent, making the “price reduced” sign
more and more common in South Florida. Each new sign tends to make
thousands of dollars in phantom equity disappear. “What we look at is
the potential wealth lost, and the amount of equity they [homeowners]
thought they had and didn’t,” said Ken Shuman, a spokesman for Trulia.
“But if you live on a street with five houses for sale, and three are
bank owned, you’re going to have to adjust your price.” [Sun