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
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 firstname.lastname@example.org
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.
Ken Shuman, email@example.com, 415-517-7211 or
Paul Loeffler for Trulia, firstname.lastname@example.org, 510-593-6765