The recovery of the housing market in the United States is making headlines in the United Kingdom, and not just because the world's most important economy is showing a positive trend for a change. British individuals have long been regarded as the biggest international purchasers of homes in the United Kingdom and their appetites have been well and truly whetted by the five-year slump.
Florida is still by far the most popular state for buyers in the United Kingdom. "Florida prices started to slide in late 2006 as one of the first signs of the crash," says Colin Murphy from investment consultancy Torcana, which searches for property bargains in depressed markets. "You could say Florida was then one of the US' most overpriced regions, but also the first to crash." Property in Florida has decreased an average of 50% from its peak, though Murphy acknowledges that this figure covers a large range.
"It is fragmented," Murphy comments, adding that the great majority of properties which are situated in attractive areas have fallen between 50% and 60% in value; however, there are some developments that have actually witnessed reductions of as much as 90%. Such extreme falls tend to have occurred to lower quality, overdeveloped properties, which are highly unlikely to ever recover fully.
Where it is happening, the recent recovery is taking place in attractive properties that are situated near to employment centers, and in coastal stretches or popular resorts where the retirement and tourism markets are starting to strongly improve. "Three years ago in the midst of the crisis, the bargains were best," Murphy points out. "I had to work to persuade people to buy back then. But today we have more enquiries than ever." He went on to add that the recovery among quality properties is well under way, and that it is getting more difficult to find good deals.
