photo credit: Naj ( Desired Hopes © )
Our October home price reduction report shows a fourth straight month of increases. 25.6% of U.S. homes as of October 1, 2009 have experienced at least 1 price cut of their original asking price. The total amount slashed off of active for sale listings by home sellers is $28.4 billion, a $967 million increase from June 2009. The average percent off the original asking price remains 10% off compared to 10.6% in June. For the 1st time in 4 months, Jacksonville, Florida no longer holds the top spot for the highest level of price reductions - Memphis leads the way with 36% of homes having experienced at least one discount.
Price Reduction Highlights
- 25.6% of U.S. homes as of October 1, 2009 have experienced at least 1 price cut of their original asking price
- $28.4 Billion in price reductions
- Average national price reduction remains 10% compared to 10.6 in June
- Memphis, Tennessee leads the nation in price reductions for the 1st time with 36%
- 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 $28.4 billion in home price reductions
- Minneapolis, Minnesota = sellers cut 8% off original asking price
- Seattle, Washington = sellers cut 8% off original asking price
According to Trulia’s Co-Founder & CEO Pete Flint,
Interest in real estate typically wanes at the end of the year, which means that sellers who didn’t aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January,” said Pete Flint, Trulia co-founder and CEO.“We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue.”
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:
Kansas City, MO – 50% increase in price reductions
Colorado Springs, CO – 32% increase in price reductions
Louisville, KY – 27% increase in price reductions
Indianapolis, IN – 27% increase in price reductions
Portland, OR – 25% increase in price reductions
Oklahoma City, OK – 24% increase in price reductions
Memphis, TN – 24% increase in price reductions
Tulsa, OK – 23% increase in price reductions
Milwaukee, WI – 22% increase in price reductions
Arlington, VA – 22% increase in price reductions
Cities showing signs the highest percentage of declines for listings with price reductions from June 2009 to October 2009
San Antonio, TX – 37% decrease in price reductions
Las Vegas, NV – 36% decrease in price reductions
Oakland, CA – 17% decrease in price reductions
San Jose, CA – 16% decrease in price reductions
Los Angeles, CA – 14% decrease in price reductions
Honolulu, HI – 11% decrease in price reductions
Long Beach, CA – 11% decrease in price reductions
Dallas, TX – 11% decrease in price reductions
Washington D.C. – 10% decrease in price reductions
New York, NY – 9% decrease in price reductions
For more info on Trulia’s national home price reduction report, please visit our press release in the Trulia News Room
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