SELLERS FEEL THE HEAT AS THEY CONTINUE TO SLASH HOME PRICES THIS SUMMER

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SAN FRANCISCO, July 14, 2010 – Trulia.com (www.trulia.com), smart real estate search to help you make better decisions, today announced that 24 percent of listings currently on the market in the United States as of July 1, 2010 experienced at least one price reduction. This represents a nine percent increase from the previous month. The total dollar amount slashed from home prices was $27.3 billion and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price.

 

Many of the largest U.S. cities saw significant increases in price reduction levels this month with 22 of the top 50 cities across the U.S. experiencing price reduction levels at 30 percent or more, compared to just 10 cities in the previous month. Minneapolis leads the way with 40 percent of its home listings experiencing at least one price cut. This is the third straight month that Minneapolis has held the top spot and no other city has reached the 40 percent mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at nine percent, the city’s total dollar amount slashed from home prices was $30.1 million.

 

“Sellers are feeling the heat this summer as the economic recovery simmers down and home inventory levels climb,” says Pete Flint, co-founder and CEO of Trulia. “We’re seeing more and more sellers reduce their home listing prices to attract potential buyers, who definitely have the upper hand in negotiations this season. The slow start to the summer season is a major concern that we are heading towards a double-dip in the second half of this year.”

Western U.S. Leads with Price Reduction Increases

In the first half of 2010, cities in the Western U.S. were experiencing a decrease in reductions.  This month, the same cities experienced some of the largest surges in price reductions compared to the previous month.  Oakland increased 38 percent month-over-month and San Diego saw reductions increase by 25 percent. Additionally, Honolulu experienced a 21 percent increase from the previous month and Las Vegas increased by 20 percent. Texas cities also saw significant increases in price reductions with San Antonio and El Paso increasing by price 21 percent and 20 percent respectively. The following U.S. cities experienced the biggest increases in price reductions from June 1, 2010 to July 1, 2010:

 

City	State	June 2010	July 2010	Percentage Change
Oakland	CA	13%	18%	38%
San Diego	CA	16%	20%	25%
Omaha	NE	25%	31%	24%
Virginia Beach	VA	26%	32%	23%
Honolulu	HI	19%	23%	21%
San Antonio	TX	19%	23%	21%
El Paso	TX	15%	18%	20%
Las Vegas	NV	10%	12%	20%

 

Luxury Market Still Feeling The Pain

Price reduction levels for luxury homes (those listed at $2 million and above) continue to provide large discounts with an average of 14 percent off of the original listing price. The average discount for homes priced less than $2 million remains at 9 percent.

 

July 2010 Price Reductions – Top 50 U.S. cities based on population: Download full chart.
To download an infographic illustrating the data, click here.

 

Rank	City	State	Percent of Listings with Price Reductions	Average Reduction (%)	Total Amount of Reductions
1	Minneapolis	MN	40%	9%	$30,138,399
2	Milwaukee	WI	39%	9%	$22,856,449
3	Dallas	TX	38%	9%	$164,878,956
4	Boston	MA	34%	7%	$51,750,099
5	Baltimore	MD	34%	11%	$37,273,818
6	Phoenix	AZ	33%	13%	$103,082,616
7	Memphis	TN	33%	9%	$24,156,340
8	Kansas City	MO	32%	9%	$34,122,816
9	Tucson	AZ	32%	10%	$63,589,760
10	Columbus	OH	32%	8%	$20,431,656
11	Mesa	AZ	32%	12%	$29,327,845
12	Jacksonville	FL	32%	11%	$88,552,440
13	Virginia Beach	VA	32%	8%	$38,029,348
14	Albuquerque	NM	31%	8%	$32,371,380
15	Louisville	KY	31%	6%	$15,619,604
16	Omaha	NE	31%	7%	$12,518,865
17	Arlington	TX	31%	7%	$ 9,206,050
18	Cleveland	OH	30%	12%	$11,384,016
19	Chicago	IL	30%	8%	$199,322,934
20	Atlanta	GA	30%	10%	$175,613,656
21	Indianapolis	IN	30%	7%	$31,539,844
22	Seattle	WA	30%	9%	$68,197,903
23	Portland	OR	29%	8%	$42,937,356
24	Philadelphia	PA	29%	8%	$66,643,452
25	Raleigh	NC	28%	7%	$34,265,088
26	Nashville	TN	28%	8%	$34,065,495
27	Long Beach	CA	27%	9%	$24,944,304
28	Fort Worth	TX	27%	8%	$35,456,022
29	Houston	TX	27%	8%	$144,307,968
30	Colorado Springs	CO	27%	7%	$38,904,960
31	Tulsa	OK	26%	6%	$16,068,222
32	Austin	TX	26%	7%	$74,626,954
33	Washington	DC	25%	10%	$72,029,714
34	San Francisco	CA	25%	8%	$71,276,436
35	Charlotte	NC	25%	9%	$76,384,896
36	Oklahoma City	OK	24%	7%	$11,470,734
37	San Antonio	TX	23%	8%	$61,355,501
38	Los Angeles	CA	23%	11%	$214,794,838
39	Honolulu	HI	23%	8%	$32,572,680
40	Denver	CO	22%	8%	$48,509,205
41	Miami	FL	21%	13%	$162,958,950
42	Sacramento	CA	20%	9%	$14,727,930
43	San Diego	CA	20%	8%	$73,750,825
44	Fresno	CA	19%	11%	$9,713,964
45	Detroit	MI	19%	26%	$10,058,664
46	El Paso	TX	18%	7%	$12,642,480
47	Oakland	CA	18%	10%	$9,580,388
48	New York	NY	17%	10%	$442,588,446
49	San Jose	CA	16%	8%	$23,803,457
50	Las Vegas	NV	12%	15%	$98,065,686

 

Trulia Price Reductions

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 empowers them to make more informed decisions regarding which home to purchase and helps consumers get the most home for their dollar. It also helps 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 July 1, 2010 and tracks all price reductions from July 1, 2009 to July 1, 2010. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and Multiple Listing Services (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:
Cerena Hsieh for Trulia, chsieh@sutherlandgold.com, 415-848-7178

Ken Shuman, kshuman@trulia.com, 415-517-7211