HOME PRICE REDUCTION LEVELS RISE FOR FOURTH STRAIGHT MONTH ACCORDING TO TRULIA’S SEPTEMBER PRICE REDUCTION REPORT
Sellers Across the Country Not Adjusting Expectations to the Reality of Today’s Real Estate Market
SAN FRANCISCO, September 11, 2009 – Trulia, Inc. (www.trulia.com), the best place to start your real estate search, today announced that 26 percent of homes currently on the market in the United States as of September 1, 2009 have experienced at least one price cut. Price reduction levels have increased for the fourth straight month and have seen a 10 percent overall increase compared to June of this year. During the summer months of June to September, the total amount slashed from home prices has increased by more than $1.1 billion from $27.4 billion to $28.5 billion. The average discount for price-reduced homes remains at ten percent off of the original listing price.
Jacksonville experienced the highest level of price reductions for the fourth straight month with 37 percent of current listings seeing at least one round of discounts. Additionally, several cities continue to experience high levels of price reductions with Albuquerque, Indianapolis, Milwaukee Minneapolis, Portland and Raleigh all earning spots in the top ten for the second straight month.
"The steady rise in price reductions is a signal that sellers are still trying to adjust to the ever changing market conditions,” said Pete Flint, Trulia co-founder and CEO. “We expect the $8,000 federal tax incentive to extend the peak home purchasing season beyond the summer months, continuing to drive competition amongst sellers and ultimately leading to more price reductions, giving consumers a great opportunity to find the home of their dreams.”
Several cities have seen four consecutive months where the percent of homes that have seen a price reduction has increased month-over-month, underscoring that sellers across the country might not be fully adjusting their home value expectations to the current real estate market:
Fourteen of the largest 50 cities are seeing reduction rates that are significantly above the national average of 26 percent:
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 percent being slashed from the original asking price compared to the national average of ten percent. Additionally, luxury homes represent barely two percent of all current listings on Trulia, but are responsible for 25 percent of the $28.5 billion in home price reductions.
September Price Reductions – Top 50 U.S. Cities
Customized data for every state, county, city and ZIP across the US is available for the media by contacting firstname.lastname@example.org
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 across all 50 states. 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.
Methodology: All price change data is from live listings on Trulia.com, as of September 1, 2009 and tracks all price reductions from September 1, 2008 to September 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