Today, Trulia announced that 20 percent of current home listings have been reduced in price at least once, compared to 27 percent in April 2009, representing a 26 percent decline nationally. Trulia was the first company to issue national price reduction reports and is available to provide historical data on trends taking place as early as April 2009.
“With such a dramatic drop in home price reductions over the past year, we’re beginning to see early signs of stabilization in the housing market on a national level, as well as locally in certain markets,” said Pete Flint, Trulia co-founder and CEO. “As the federal stimulus comes to an end this month, coupled with expected increases in interest rates and foreclosures, the next few months will be very telling for whether the U.S. housing market can be self-sustaining over the longer-term. Trulia will continue to track price reductions going forward as an indicator of health in real estate market.”
In April 2009, Trulia first started tracking price reductions, both nationally and for the 15 major U.S. cities. Of the original 15 cities, those hit earliest and hardest have experienced huge decreases in price reductions compared to the previous year, including Las Vegas (54 percent), San Diego (52 percent) and San Francisco (45 percent). Seattle was the only original city to see a significant increase in price reduction levels with a 15 percent spike compared to the previous year.
Price Reductions Year-over-Year Changes - Original Top 15 Cities: 
Average Discount Year-over-Year Changes - Original Top 15 Cities:
In addition to seeing fewer homes reduced in price, the current report shows several cities have seen significant decreases in the percentage amount slashed off of the original listing price compared to the previous year. New York and San Francisco both saw discounts on home prices drop by more than 30 percent compared to April 2009.
On the other hand, several cities actually experienced increases in the average price reduction. Houston, Denver, Seattle and Phoenix all saw double-digit percentage increases compared to April 2009.
April 2010 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.
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April 21st, 2010 at 11:41 pm
Great info. I wrote the other day about how we just need to rip the band aid off - take any additional price declines (or, more appropriately, simply start pricing homes correctly from the get-go). That’s the only way the real estate markets are really going to recover.
But it’s good to see that in many areas, things are at least less bad.