South Florida Speculators Outbid Average Homebuyers
Floridians with modest nest eggs who were priced out of home ownership during the boom should be able to get their hands on a sweet little slice of subdivision now that prices have plummeted. Right?
Not exactly. It turns out that investors are opening their purse strings, too, beating regular buyers to the punch.
"Cash-happy investors have been scooping up these bargain basement deals at a fast clip, often before middle-income buyers can get financing," according to the Herald. The nest egg can't compare to the deep pockets of developers, speculators and investors who can self-finance, especially in the wary world of mortgage lending. And foreclosed homes tend to sell for 25 less than their non-foreclosed counterparts, hard for the cash-in-hand to resist.