RISMEDIA, August 29, 2009-Trulia, Inc., a real estate search website, announced that 25% of homes currently on the market in the United States as of August 1, 2009 have experienced at least one price cut. The percentage of price reductions has continued to increase month-over-month for the past three months. The total value slashed off active listings now totals $27.8 billion. Major metros across the U.S. continue to be the hardest hit with 66% of the top 50 markets having percentage-of-price-reduction levels above the national average. Discounts for price-reduced homes has slightly decreased to an average of 10% off of the original listing price compared to an average of 10.6% off of the original listing price in June 2009.
While home sellers in several cities are beginning to price more aggressively, and forgo the need for price reductions, many continue to ignore market conditions and over-price their homes. Jacksonville retains the top spot for highest levels of price reductions for the third consecutive month with 38% of current listings experiencing at least one round of discounts. Additionally, Boston, Milwaukee and Minneapolis all placed in the top five nationally with the highest percentage of reductions for the second straight month.
“We are excited to see industry reports showing positive signs in the real estate industry, but there is still a long way to go before we’ll see a real recovery for the U.S. as a whole. Even as the volume of sales are starting to rise nationally, the median home price continues to fall,” said Pete Flint, Trulia co-founder and CEO. “The reality is, today’s sellers need to price aggressively to avoid reductions. Consumers are looking for value and when they find a good deal, they are taking advantage of market conditions.”
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to August 2009 include:
-Fresno, CA – 67% increase in price reductions
-Colorado Springs, CO – 27% increase in price reductions
-Kansas City, MO – 25% increase in price reductions
-Oklahoma City, OK – 24% increase in price reductions
-Albuquerque, NM – 22% increase in price reductions
Cities showing signs of recovery with significant declines in percentage of listing with price reduction from June 2009 to August 2009 include:
-Dallas, TX – 42% fewer price reductions
-Las Vegas, NV – 33% fewer price reductions
-Louisville, KY – 33% fewer price reductions
-Los Angeles, CA – 19% fewer price reductions
-Washington D.C. – 17% fewer price reductions
Luxury Market Getting Hit Hard
Luxury homes (those listed at two million dollars and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent barely two percent of all current listings on Trulia, but are responsible for 25% of the $27.8 billion in home price reductions.
For more information, visit www.trulia.com.