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SAN FRANCISCO March 9, 2010 – Trulia.com (www.trulia.com), smart real estate search to help you make better decisions, today announced a new all-time low for national home price reduction levels since the company started tracking in April 2009, with 19 percent of listings currently on the market in the United States as of March 1, 2010 experiencing at least one price cut. This represents a 10 percent decrease from the previous month and the first time price reduction levels have dropped below 20 percent. The total dollar amount slashed from home prices dropped to $21.6 billion and the average discount for price-reduced homes continues to hold at 11 percent off of the original listing price.
Many major metros* across the U.S. have seen steady declines in price reductions during the past few months. The following U.S. cities experienced the biggest decline in price reductions from February 1, 2010 to March 1, 2010:
|
Cities |
1-Mar |
1-Feb |
Percentage Decline |
|
Charlotte, NC |
21% |
29% |
28% drop |
|
Colorado Springs, CO |
21% |
26% |
19% drop |
|
Houston, TX |
21% |
26% |
19% drop |
|
Raleigh, NC |
21% |
26% |
19% drop |
|
Jacksonville, FL |
30% |
36% |
17% drop |
|
Albuquerque, NM |
20% |
24% |
16% drop |
|
Tucson, AZ |
27% |
32% |
16% drop |
|
Omaha, NE |
22% |
26% |
15% drop |
|
San Antonio, TX |
17% |
20% |
15% drop |
Six major cities in California also occupy the lowest percent of current listings with price reductions out of the Top 50 national cities: San Francisco (16%), Sacramento (15%), San Diego (13%), Oakland (13%), San Jose (12%) and Fresno (12%).
“Consumer engagement on Trulia remains at an all time high, but home sales have dropped nationally during the past few months because there has been a lower sense of urgency to ‘buy now’,” said Pete Flint, Trulia co-founder and CEO. “As we get closer to the government incentives running out, we expect price reductions to increase as sellers begin to feel the pressure to lure buyers in, in advance of the tax credit expiration.”
The Tax Credit Effect
Price reduction levels peaked nationally toward the end of 2009, corresponding to the timing of the original November 2009 deadline for the Federal Housing Tax Credit. In the months following the extension of the tax credit, price reduction levels have since declined. National price reduction levels by month:
- March 2010 – 19%
- February 2010 – 21%
- January 2010 – 21%
- December 2009 – 22%
- November 2009 – 26%
- October 2009 – 26%
- September 2009 – 26%
- August 2009 – 25%
- July 2009 – 25%
- June 2009 – 24%
Buyers and Sellers Disagreeing
While many states are seeing lower levels of price reductions, sellers and buyers in the following states continue to disagree more frequently on what is fair for home prices in their respective states:
- Arizona – 25%
- Massachusetts – 25%
- Washington D.C. – 25%
- Hawaii – 24%
- Maryland – 24%
Million-Dollar Markets Hit Hardest
The average amount slashed from homes listed at $1 million above is 14 percent off of the original listing price. The following five cities saw significantly bigger discounts on properties priced above $1 million compared to the national average for March 2010:
- Columbus, OH – 35% off of the original listing price
- Mesa, AZ – 22% off of the original listing price
- Cleveland, OH – 20% off of the original listing price
- Baltimore, MD – 18% off of the original listing price
- Las Vegas, NV – 18% off of the original listing price
March 2010 Price Reductions – Top 50 U.S. Cities: download full chart
|
Rank |
City |
State |
Percent of Listings with Price Reductions |
Average Reduction (%) |
Total Amount of Reductions |
|
1 |
Milwaukee |
WI |
33% |
9% |
$ 17,247,300 |
|
2 |
Phoenix |
AZ |
31% |
13% |
$ 99,006,960 |
|
3 |
Mesa |
AZ |
31% |
14% |
$ 30,437,385 |
|
4 |
Memphis |
TN |
31% |
10% |
$ 24,090,936 |
|
5 |
Baltimore |
MD |
30% |
12% |
$ 35,287,980 |
|
6 |
Jacksonville |
FL |
30% |
13% |
$ 92,945,001 |
|
7 |
Dallas |
TX |
29% |
9% |
$ 102,431,520 |
|
8 |
Minneapolis |
MN |
29% |
8% |
$ 14,475,510 |
|
9 |
Tucson |
AZ |
27% |
10% |
$ 54,479,308 |
|
10 |
Columbus |
OH |
26% |
9% |
$ 13,942,935 |
|
11 |
Washington |
DC |
25% |
12% |
$ 53,931,396 |
|
12 |
Kansas City |
MO |
25% |
9% |
$ 23,811,900 |
|
13 |
Cleveland |
OH |
25% |
12% |
$ 10,360,746 |
|
14 |
Portland |
OR |
25% |
9% |
$ 37,099,268 |
|
15 |
Nashville |
TN |
25% |
8% |
$ 28,372,356 |
|
16 |
Chicago |
IL |
24% |
9% |
$ 165,984,664 |
|
17 |
Boston |
MA |
24% |
7% |
$ 27,709,038 |
|
18 |
Arlington |
TX |
24% |
8% |
$ 7,003,500 |
|
19 |
Atlanta |
GA |
24% |
11% |
$ 128,249,832 |
|
20 |
Miami |
FL |
23% |
16% |
$ 165,186,915 |
|
21 |
Long Beach |
CA |
23% |
10% |
$ 22,183,886 |
|
22 |
Omaha |
NE |
22% |
7% |
$ 6,637,540 |
|
23 |
Louisville |
KY |
22% |
7% |
$ 11,129,217 |
|
24 |
Philadelphia |
PA |
22% |
9% |
$ 34,778,802 |
|
25 |
Tulsa |
OK |
21% |
7% |
$ 9,384,376 |
|
26 |
Raleigh |
NC |
21% |
7% |
$ 24,659,771 |
|
27 |
Houston |
TX |
21% |
8% |
$ 104,163,301 |
|
28 |
Charlotte |
NC |
21% |
10% |
$ 69,452,999 |
|
29 |
Los Angeles |
CA |
21% |
12% |
$ 210,607,796 |
|
30 |
Colorado Springs |
CO |
21% |
9% |
$ 29,621,496 |
|
31 |
Fort Worth |
TX |
21% |
8% |
$ 25,007,822 |
|
32 |
Virginia Beach |
VA |
21% |
8% |
$ 24,116,439 |
|
33 |
Honolulu |
HI |
20% |
8% |
$ 25,137,539 |
|
34 |
Seattle |
WA |
20% |
10% |
$ 49,396,690 |
|
35 |
New York |
NY |
20% |
10% |
$ 424,185,090 |
|
36 |
Albuquerque |
NM |
20% |
8% |
$ 19,740,105 |
|
37 |
Detroit |
MI |
19% |
25% |
$ 10,907,919 |
|
38 |
Indianapolis |
IN |
19% |
8% |
$ 17,227,538 |
|
39 |
Oklahoma City |
OK |
19% |
7% |
$ 8,425,226 |
|
40 |
Denver |
CO |
18% |
9% |
$ 34,939,072 |
|
41 |
San Antonio |
TX |
17% |
8% |
$ 43,435,520 |
|
42 |
Austin |
TX |
17% |
9% |
$ 61,611,147 |
|
43 |
El Paso |
TX |
16% |
8% |
$ 12,605,973 |
|
44 |
Las Vegas |
NV |
16% |
16% |
$ 91,575,847 |
|
45 |
San Francisco |
CA |
16% |
9% |
$ 34,164,200 |
|
46 |
Sacramento |
CA |
15% |
9% |
$ 11,095,866 |
|
47 |
San Diego |
CA |
13% |
9% |
$ 44,027,408 |
|
48 |
Oakland |
CA |
13% |
13% |
$ 8,189,762 |
|
49 |
San Jose |
CA |
12% |
8% |
$ 15,740,472 |
|
50 |
Fresno |
CA |
12% |
10% |
$ 5,726,004 |
Customized data for every state, county, city and ZIP across the US is available for the media by contacting pr@trulia.com.
*Top 50 cities based on population – see data table
Trulia Price Reductions Methodology
Trulia was the first national real estate site to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today’s market across all 50 states. Trulia’s Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.
Providing home buyers with access to price reduction data will help them be better informed as they decide which home to purchase and will help ensure consumers get the most home for their dollar. It will also help home sellers price their homes competitively as more homes come onto the market.
Methodology: All price change data is from live listings on Trulia.com, as of March 1, 2010 and tracks all price reductions from March 1, 2009 to March 1, 2010. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and MLSs. The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site. The city level data is for listings within the city boundary, and not for metro areas.
About Trulia, Inc.
Trulia.com is the most comprehensive real estate site focused on empowering you with smarter tools to help you find the right home. Whether you are an active buyer, seller or real estate enthusiast, Trulia gives you all the information you care about from rich property data to a personalized search experience. We are focused on helping you find the home that truly meets your needs, and delivers on what’s most important for you. Ultimately, we built a smart real estate search experience bringing together local information, community insights, market data and national listings all in one place, all for you.
Media Contacts:
Paul Loeffler for Trulia, paul@sutherlandgold.com, 510-593-6765
Ken Shuman, kshuman@trulia.com, 415-517-7211
