< bloginfo('name'); ?>

photo credit: matthijs

Our December home price reduction report shows that 22% of homes currently on the market in the U.S. as of December 1, 2009 have experienced at least one price cut, the lowest level since Trulia started tracking price reductions in April, 2009. The total amount slashed from home prices also dropped from $28.1 Billion in November to $24.7 Billion in December, representing a 12% decrease. The average discount for price-reduced homes slightly increased to 11% off of the original listing price compared to 10% in the previous four months. The number of listings on Trulia also decreased by 9% from the previous month.

December Price Reduction Highlights

• 22% of U.S. homes as of December 1, 2009 have experienced at least 1 price cut
• $28.1 Billion in price reductions
• Average national price reduction slightly increased to 11%
• Minneapolis, MN leads the nation in price reductions with 40%
• Luxury homes listed at $2M plus see an average of 14% cut vs. the 10% cut for homes listed under $2M
• Luxury homes over $2M on Trulia is less than 2% of current listings but is responsible for 26% of the $24.7 Billion in home price reductions

South Reports Least Amount of Homes Reduced

The South has the lowest levels of price reductions, with 19% of current listings experiencing at least one price cut, a 21% decrease from the previous month. Kentucky, Louisiana, Arkansas, Oklahoma and Mississippi are all seeing less than 15% of listings with price reductions. (Regions according to the U.S. Census Bureau).

• South- 19% of listings with price reductions
• West- 20% of listings with price reductions
• Midwest- 22% of listings with price reductions
• Northeast- 25% of listings with price reductions

“We saw some of the highest levels of reductions last month, as home owners raced to sell their homes in advance of the November 30 expiration of the tax credit,” said Pete Flint. “We are now seeing fewer reductions at the low end of the market as those sellers are increasingly in sync with market prices. With the expansion of the tax credit to repeat home buyers and extension to April 30, we expect to see an increase in price reductions at the higher end of the market in the first quarter of 2010.”

For the first time since Trulia started tracking price reductions in April 2009, one major U.S. city has reached 40 percent of listings with price reductions – Minneapolis. This is the second straight month that Minneapolis has held the top spot for highest percentage of price reductions.

Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to December 2009 include:

• Kansas City, MO – 40% increase in price reductions
• Omaha, NE – 39% increase in price reductions
• Houston, TX – 32% increase in price reductions
• Minneapolis, MN – 29% increase in price reductions
• Arlington, VA – 28% increase in price reductions

Cities showing signs the highest percentage of declines for listings with price reductions from June 2009 to December 2009 include:

• Las Vegas, NV– 30% decrease in price reductions
• San Jose, CA – 30% decrease in price reductions
• Long Beach, CA – 25% decrease in price reductions
• Honolulu, HI – 23% decrease in price reductions
• Albuquerque, NM – 22% decrease in price reductions

Luxury Market Still Hardest Hit

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 10 percent for homes listed under $2 million. Additionally, luxury homes represent less than two percent of all current listings on Trulia, but are responsible for 26 percent of the $24.7 billion in home price reductions.

December Price Reductions – Top 50 U.S. Cities

For more info on Trulia’s national home price reduction report, please visit our press release in the Trulia News Room

Popularity: 6% [?]