ONE IN FOUR HOME SELLERS NATIONWIDE HAS CUT LIST PRICE – NO END IN SIGHT TO PRICE REDUCTIONS
New York, Las Vegas and San Diego See Major Increase in Price Reductions Month-Over-Month, According to Latest Report from Trulia.com
SAN FRANCISCO, August 11, 2010 – Trulia.com (www.trulia.com), smart real estate search to help you make better decisions, today announced that 25 percent of the home listings on the market in the United States as of August 1, 2010 have experienced at least one price reduction. This makes August the fourth straight month in increases for national price reduction levels. The total dollar amount slashed from home prices in America’s 50 largest cities was $30.1 billion, and the average discount on price-reduced homes continued to hold at 10 percent off of the original listing price.
“With one out of every four homes experiencing at least one price reduction, sellers are feeling no relief this summer, in a market climate of fewer qualified buyers and widespread uncertainty about the job market. If buyers are unqualified to buy, it doesn’t matter how low interest rates are or how discounted a home is,” says Pete Flint, co-founder and CEO of Trulia. “I stated at the beginning of the year that I did not expect to see the housing market stabilize or recover in 2010, and I believe that prediction is being proven true today. We will be bouncing around the bottom for months to come. If you are looking to do a short-term buy, this is the wrong market for you. People buying today need to have a plan to stay in their homes over the long term.”
Of the largest 50 American cities, half had price reduction levels of 30 percent or more of the homes for sale. This month, Minneapolis breaks the all-time, national record of having the highest percentage of listings experiencing at least one price reduction (42 percent). Previously, Minneapolis held at 40 percent for the past three months, which set the previous record. No other city has reached this mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at nine percent, the total dollar amount slashed from Minneapolis home prices was $33.8 million.
Cities in Southwestern states experienced some of the largest surges in price reductions. Las Vegas saw the most dramatic increase of 56 percent, month-over-month. Cities in California also experienced notable increases with San Diego and Los Angeles increasing by 15 percent and 12 percent respectively, from July to August. Fresno saw a 28 percent increase in the rate of price reductions, while San Jose experienced a 13 percent increase. New York, which had a 15 percent increase, was the only city on the East Coast to see a double-digit percentage increase.
The following U.S. cities experienced the biggest increases in price reductions from July 1, 2010 to August 1, 2010:
Luxury Market Still Feeling The Pain
Sellers of luxury homes (those listed at $2 million and above) continue to provide massive discounts of of 14 percent off of the original listing price, on average. By comparison, the average discount for homes priced less than $2 million remains at 9 percent.
August 2010 Price Reductions - Top 50 U.S. cities based on population: Click here to download data chart.
Click here to download Consumer Tips: 7 Insider Secrets for Bargain-Seeking House Hunters.
Trulia Price Reductions
Trulia was the first 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 empowers them to make more informed decisions regarding which home to purchase and helps consumers get the most home for their dollar. It also helps 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 August 1, 2010 and tracks all price reductions from July 1, 2009 to August 1, 2010. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and Multiple Listing Services (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.com is the most comprehensive real estate site focused on empowering you with smarter tools to help you find the right home. Whether you are an active buyer, seller or real estate enthusiast, Trulia gives you all the information you care about from rich property data to a personalized search experience. We are focused on helping you find the home that truly meets your needs, and delivers on what’s most important for you. Ultimately, we built a smart real estate search experience bringing together local information, community insights, market data and national listings all in one place, all for you.
Tara-Nicholle Nelson, email@example.com, 510-910-6713