National Price Reductions Total $27.1B, Says Trulia

Posted by Orb Staff on July 14, 2009 No Comments
Categories : Residential Mortgage

a quarter – 24.6% – of current homes on the market as of July 1 have experienced at least one price cut, bringing the national reductions total to $27.1 billion, according to real estate data provider Trulia Inc. The average price-reduced home has seen a listing-price reduction of 10.4% – a moderate decrease from 10.6% the month prior. Some of the hardest-hit areas have seen significant decreases in terms of the number of homes with price reductions – a trend that Trulia says indicates that stabilization is beginning to occur in these areas. Several major metros are beginning to see signs of recovery, with significant decreases in the number of price-reduced properties for sale compared to last month's report. Areas that have experienced the biggest decreases in home price reductions include Las Vegas, Los Angeles, Dallas, Washington, D.C., and Baltimore. Two of the hardest-hit markets during the past few years, Las Vegas and Los Angeles, turned in the biggest improvement of all major markets in the U.S., with a 33% and 25% reduction, respectively, in the number of homes being reduced in price compared to one month ago. While the overall number of price reductions has been drastically reduced, the average percent off of the asking price in Las Vegas and Los Angeles continues to be higher than the national average of 10.4%. The average reduction in Las Vegas is 16%, and the average reduction in Los Angeles is 12%. "All real estate is local, and we're seeing glimmers of hope as price stabilization occurs in major cities across the nation, including some of the earliest-hit cities that have experienced huge declines in the past few years," says Pete Flint, Trulia co-founder and CEO. "On the flip side, perhaps sellers are pricing their homes more rationally to get them off the market as soon as possible." In markets such as Detroit, Miami and New York, sellers more dramatically overpriced their homes, which is leading to more drastic cuts nowadays, Trulia says. In Detroit, sellers dropped their price an average of 21%, Miami sellers slashed 15% and New Yorkers cut 13% off their prices. Compared to the previous month, four new cities entered the top 10 for markets that have the greatest percentage of listings with price reductions: Milwaukee, Chicago, New York City and Raleigh, N.C. SOURCE:

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