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TRULIA PRICE REDUCTION REPORT: LISTING PRICE CUTS ON THE RISE NATIONALLY; STABILIZATION SEEN IN SOME OF THE HARDEST HIT MARKETS

$27.1 billion in Price Reductions for All Homes on the Market as of July 1, 2009

Hard Hit Cities Las Vegas and Los Angeles on the upswing Versus One Month Ago

SAN FRANCISCO, July 10, 2009 – Trulia, Inc. (www.trulia.com), the best place to start your real estate search, today announced that 24.6 percent of current homes on the market in the United States as of July 1, 2009 have experienced at least one price cut, totaling $27.1 billion in reductions. The average price-reduced home has seen a listing price reduction of 10.4 percent, a moderate decrease from 10.6 percent the month prior. Some of the hardest hit areas have seen significant decreases in terms of the number of homes with price reductions, indicating 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 percent and 25 percent 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. The average reduction in Las Vegas is 16 percent and the average reduction in Los Angeles is 12 percent. 

 

“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,” said 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.”

 

The national reduction average for a property is 10.4 percent, but in markets like Detroit, Miami and NYC sellers more dramatically overpriced their homes, and are making more drastic cuts.  In Detroit, sellers dropped their price an average of 21 percent, in Miami sellers slashed 15 percent off their original asking price and in New York City sellers cut 13 percent off their price. 

 

Compared to the previous month, four new cities entered the top ten major for markets that have greatest percentage of listings with price reductions – Milwaukee, Chicago, New York City, and Raleigh (see below for top 50 cities by percentage of home price reductions).

 

Luxury Market Getting Hit Hard

 

25.8 percent of homes with a selling price greater than $1 million are seeing price reductions compared to 24.5 percent of homes on the market for less than $1 million. While the percentage of homes seeing discounts are almost identical, discounts on luxury homes are significantly more with 13 percent being slashed off the original price compared to only 9 percent of homes under the $1 million dollar price tag.

 

July Price Reductions – Top 50 U.S. Cities

 

Rank

City

State

Percent of Listings with Price Reductions

 Average Reduction (%)

Total Amount of Reductions

1

Jacksonville

FL

39%

12%

 $             119,520,476

2

Boston

MA

35%

8%

 $               54,084,186

3

Minneapolis

MN

33%

8%

 $               24,226,528

4

Milwaukee

WI

33%

8%

 $               17,349,888

5

Honolulu

HI

33%

10%

 $               56,889,546

6

Tucson

AZ

31%

10%

 $               67,675,233

7

Chicago

IL

31%

9%

 $             229,444,054

8

New York

NY

31%

13%

 $         1,035,023,661

9

Austin

TX

31%

8%

 $             112,001,484

10

Raleigh

NC

31%

7%

 $               41,252,954

11

Portland

OR

31%

9%

 $               50,331,424

12

Columbus

OH

31%

8%

 $               16,017,660

13

Memphis

TN

30%

9%

 $               25,241,328

14

Charlotte

NC

30%

8%

 $               88,334,285

15

Seattle

WA

30%

8%

 $               56,207,984

16

Indianapolis

IN

30%

8%

 $               28,505,421

17

Dallas

TX

29%

8%

 $               88,285,274

18

San Francisco

CA

29%

12%

 $             104,802,981

19

Albuquerque

NM

29%

7%

 $               22,554,423

20

Miami

FL

29%

15%

 $             257,656,320

21

Nashville

TN

27%

7%

 $               24,877,884

22

San Jose

CA

27%

9%

 $               33,113,362

23

Long Beach

CA

27%

12%

 $               32,158,080

24

Oakland

CA

26%

11%

 $               13,102,838

25

Atlanta

GA

26%

11%

 $             174,161,588

26

Fresno

CA

26%

11%

 $                 8,130,318

27

Sacramento

CA

26%

11%

 $               17,314,740

28

Omaha

NE

26%

6%

 $               10,699,640

29

Baltimore

MD

25%

10%

 $               27,533,975

30

Virginia Beach

VA

25%

8%

 $               34,880,616

31

Philadelphia

PA

24%

8%

 $               43,893,960

32

Oklahoma City

OK

24%

6%

 $                 8,974,080

33

Colorado Springs

CO

24%

7%

 $               21,244,678

34

Mesa

AZ

24%

12%

 $               18,274,815

35

Phoenix

AZ

24%

13%

 $               75,388,782

36

Los Angeles

CA

24%

12%

 $             230,407,507

37

Tulsa

OK

24%

6%

 $               12,107,148

38

Cleveland

OH

24%

12%

 $                 6,697,158

39

Kansas City

MO

23%

8%

 $               16,077,888

40

San Antonio

TX

23%

7%

 $               48,785,804

41

Washington

DC

23%

8%

 $               32,949,249

42

Arlington

TX

21%

6%

 $                 3,705,732

43

Louisville

KY

21%

6%

 $                 5,132,220

44

Las Vegas

NV

20%

16%

 $             157,924,360

45

Denver

CO

19%

9%

 $               44,715,012

46

Fort Worth

TX

19%

7%

 $               13,406,496

47

San Diego

CA

18%

9%

 $               53,869,600

48

Houston

TX

18%

8%

 $               47,901,000

49

El Paso

TX

18%

8%

 $               13,764,736

50

Detroit

MI

17%

21%

 $                 9,824,724

 

Trulia Price Reductions      

Trulia is the first and only national real estate site to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today’s market. Trulia’s Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.

 

Providing home buyers with access to price reduction data will help them be better informed as they decide which home to purchase and will help ensure consumers get the most home for their dollar.  It will also help home sellers price their homes competitively as more homes come onto the market.

 

Charts are available for download at: http://www.trulia.com/info/july09pricereductions 

Customized data is available for the media by contacting pr@trulia.com

 

Methodology:  All price change data is from live listings on Trulia.com, as of July 1, 2009 and tracks all price reductions from July 1, 2008 to July 1, 2009.  This data does not include foreclosure properties.  Trulia obtains its listing information from brokers, agents, third party aggregators and MLSs.  The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site.  The city level data is for listings within the city boundary, and not for metro areas.

 

About Trulia, Inc.
Trulia, Inc. has revolutionized real estate search by offering a rich, intuitive user experience to help consumers find homes for sale, track local price trends, compare properties and neighborhood data all at the hyper-local level.  Trulia Voices, the largest real estate community on the web, allows home buyers, sellers, agents and real estate enthusiasts to ask questions, receive advice and blog on topics such as the buying and selling process, foreclosures, refinancing and more.   Trulia’s user-friendly search can also be accessed on more than 170 websites as a result of our media partnerships.  Trulia has received a number of awards, including the 2009 Webby Award for real estate.  For more information, visit http://www.trulia.com/.

 

Media Contact:

Ken Shuman, kshuman@trulia.com, 415-517-7211 or

Paul Loeffler for Trulia, paul@sutherlandgold.com, 510-593-6765


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