Trulia’s November price reduction report shows that despite national price reduction levels remaining flat for the first time in five months, 15 major U.S. cities reached an all-time high for price reductions on home listings. National price reductions for home listings currently on the market in the U.S. remained flat at 27 percent following four consecutive months of increases. The average reduction also remained flat at 10 percent and the total dollar amount of all reductions increased to $31.5 billion.
“Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand – on that score, buyers clearly have the advantage this holiday season,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”
Cities with Record High Percentage in Price Reductions
High Price Reduction Trends Evoke National Uncertainty
Price reductions in Minneapolis reached 46 percent, which represents the highest historic figure for any of the 50 largest U.S. cities since Trulia began tracking price reduction data in June 2009. For the first time, Phoenix topped 40 percent for the first time, becoming only the third city with this distinction. While mixed messages about future recovery in the housing market resound, Trulia expects the continued presence of distressed homes and a listing inventory of more than 10 months currently on the market to contribute to lengthening housing recovery process for the foreseeable future.
“We typically see an increase in price reductions toward the end of the year, so buyers hoping to add a home to their holiday wish list are in prime position to take advantage of low prices,” said Nelson. “Even with price reductions climbing in many areas of the U.S., sellers can still aim to get the best price for their homes by ensuring their home is in top condition, the easiest way to make it stand out from all the foreclosures on the market, and pricing it to compete with the distressed homes in the area.”
For full 50 city data chart of Trulia’s November 2010 Price Reductions, click here.
To learn more about Trulia’s Price Reductions and the Methodology by which this study was conducted, click here.
For an infographic visualization of the November Trulia Price Reduction Report results, click here.