RISMEDIA, October 12, 2009—Trulia, Inc announced that 25.6% of homes currently on the market in the U.S. as of October 1, 2009 have experienced at least one price cut. More than one in four current listings on Trulia have been reduced in price for the fourth straight month. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009. The average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.
Northeast with Most Homes Reduced; West Sees Biggest Cuts
Five of the 10 states with the highest percentage of homes with price reductions are in the Northeast— Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. One in three homes in these states has cut their list price at least once.
Seven of the 10 states leading the country with the biggest listing price cuts are in the West, where heavy foreclosures have taken their toll. In Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California, cuts are an average of 13% off the original list price. Of the $28.4 billion slashed nationally, New York, California and Florida account for 35% of the total value of reductions.
For the first time in four months, Jacksonville no longer holds the top spot for highest level of home-price reductions: Memphis replaced Jacksonville with 36% of current listings experiencing at least one round of discounts. Several cities continue to see high levels of cuts on home prices with Indianapolis, Milwaukee, Minneapolis, Portland and Raleigh, all earning a place in the top 10 for the third consecutive month.
“Interest in real estate typically wanes at the end of the year, which means that sellers who didn’t aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January,” said Pete Flint, Trulia co-founder and CEO. “We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue.”
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:
-Kansas City, MO – 50% increase in price reductions
-Colorado Springs, CO – 32% increase in price reductions
-Louisville, KY – 27% increase in price reductions
-Indianapolis, IN – 27% increase in price reductions
-Portland, OR – 25% increase in price reductions
-Oklahoma City, OK – 24% increase in price reductions
-Memphis, TN – 24% increase in price reductions
-Tulsa, OK – 23% increase in price reductions
-Milwaukee, WI – 22% increase in price reductions
-Arlington, VA – 22% increase in price reductions
Cities showing the highest percentage of declines for listings with price reductions from June 2009 to October 2009 include:
-San Antonio, TX – 37% decrease in price reductions
-Las Vegas, NV – 36% decrease in price reductions
-Oakland, CA – 17% decrease in price reductions
-San Jose, CA – 16% decrease in price reductions
-Los Angeles, CA – 14% decrease in price reductions
-Honolulu, HI – 11% decrease in price reductions
-Long Beach, CA – 11% decrease in price reductions
-Dallas, TX – 11% decrease in price reductions
-Washington, D.C. – 10% decrease in price reductions
-New York, NY – 9% decrease in price reductions
Luxury Market Not Immune
Luxury homes (those listed at $2 million 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 less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.4 billion in home price reductions.
For more information, visit www.trulia.com.