PRICE REDUCTIONS NATIONWIDE HIT HIGHEST LEVELS OF 2010, MIXED TRENDS EMERGE IN MAJOR U.S. CITIES ACCORDING TO TRULIA
Despite 1 Percent Increase in Nationwide Price Reductions and Increasing Levels in Major Midwest Cities, Price Reductions for Nearly Half of the 50 Largest U.S. Cities Remain Unchanged or Drop
SAN FRANCISCO, September 15, 2010 – Trulia.com (www.trulia.com), a top site for homebuyers, sellers and renters, announced today that price reductions for home listings currently on the market in the U.S. have increased for the third consecutive month to 26 percent and account for a total reduction of more than $29 billion nationwide. These figures only tell part of the story, however, as modest signs of recovery appear to be emerging across the nation.
Despite the increase of price reduction figures to historic levels, 24 of the 50 largest U.S. cities held steady or dropped compared with data from the previous month. This represents a 50 percent increase from August, which saw 16 cities report positive or unchanged price reduction data. The reduction percentage remains unchanged at 10 percent ($33,892 average price reduction).
“On the surface, the latest price reduction data carries with it conflicting messages,” said Pete Flint, co-founder and CEO, Trulia. “Nationwide, sellers continue to slash prices and this is a worrisome trend. However, we’re seeing gradual improvement in many U.S. cities – several for consecutive months. What this shows us is that while we’re in for a long climb to bring stability back to the housing market and while it’s going to take time, that climb appears to at least be underway in some parts of the country.”
Diverging Developments in the Golden State
In California, price reductions have increased steadily since the tax credit for new homebuyers expired on April 30. Despite this, seven of the state’s eight largest cities report price reductions figures below or in line with the national average. Furthermore, five California cities show improvement when compared with data captured one year earlier.
Sellers Crank Up Price Cuts in Major Midwestern Cities
Price reductions in Minneapolis reached an all-time high of 43 percent. In total, sellers have slashed $34.8 million off homes currently on the market and this is the fifth consecutive month of price reductions at or above 40 percent. Milwaukee also crossed the 40 percent threshold, representing the first time two U.S. cities have reported price cuts above 40 percent since Trulia began tracking home price reductions in April 2009. Cleveland logged the lowest price reductions figure among the largest Midwest cities (31 percent), a full five percent higher than the national average.
September 2010 Price Reductions: top 50 cities based on population. Download chart.
Trulia Price Reductions
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. Price reduction data 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 June 1, 2010 and tracks all price reductions from September 1, 2009 to September 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.
Chip Scarinzi for Trulia, email@example.com, 415-486-3221
Ken Shuman, firstname.lastname@example.org, 415.517.7211