Our September home price reduction report shows a fourth straight month of increases. 26% of U.S. homes as of September 1, 2009 have experienced at least 1 price cut of their original asking price. Since June, the percentage of price reductions has increased by 10%. The total amount slashed off of active for sale listings by home sellers is $28.5 billion. Fourteen of the largest 50 cities are seeing reduction rates that are significantly above the national average of 26%. The average percent off the original asking price remains 10% off compared to 10.6% in June. For the 4th straight month, Jacksonville, Florida leads the way with 37% of active listings seeing a price reduction.
Price Reduction Highlights
- 26% of U.S. homes as of September 1, 2009 have experienced at least 1 price cut of their original asking price
- $28.5 Billion in price reductions
- Average national price reduction remains 10% compared to 10.6 in June
- Jacksonville, Florida leads nation in price reductions for 4th straight month with 38%
- Sellers need to price aggressively to avoid price reductions
- Luxury homes priced $2 million plus seeing an average of 14% cut vs. the national average of 10%
- Luxury homes over $2,000,000 on Trulia = 2% but = 25% of the $28.5 billion in home price reductions
- New York City, New York = sellers cut 13% off original asking price
- Austin, Texas = sellers cut 8% off original asking price
According to Trulia’s Co-Founder & CEO Pete Flint,
“The steady rise in price reductions is a signal that sellers are still trying to adjust to the ever changing market conditions. “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:
Top 50 U.S. Cities for Price Reductions in September
Luxury Real Estate Market
Luxury homes that are priced $2 million and above are seeing an average of 14% cut vs. the national average of 10%. Approximately 2% of the homes on Trulia are luxury homes yet are responsible for 25% of the $28.5 billion in home price reductions.
For more info on Trulia’s national home price reduction report, please visit our press release in the Trulia News Room.
If you don’t see home price reductions for your local market mentioned above, just leave a comment below with your City, County or zip code and we’ll provide it to you on demand. If you’re on Twitter, just ask me @trulia “How much were prices reduced in my area - City, County or Zip code? Cool?
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September 11th, 2009 at 12:56 pm
These stats are great at helping us speak to our sellers and buyers about the real state of the market. Thanks!
September 15th, 2009 at 12:49 pm
I think one thing that is often overlooked in these statistics is that the first time home buyer price range in a lot of markets is not seeing price reductions at all and in some markets is even seeing artificial inflation due to the demand of so many first time home buyers trying to buy homes in such a tight price range.