A fourth of the homes up for sale as of Aug. 1 had at least one price reduction, according to real estate search engine Trulia.com. This means for every four sellers, one lowered their asking price to get out of their home.
“With one out of every four homes experiencing at least one price reduction, sellers are feeling no relief this summer, especially in a market climate of fewer qualified buyers and widespread uncertainty about the job market. If buyers are unqualified to buy, it doesn’t matter how low interest rates are or how discounted a home is,” Pete Flint, co-founder and CEO of Trulia, said in a press release.
Trulia began tracking home price reductions in April 2009 in order to help prospective homebuyers and sellers gauge the current housing market. The newly released numbers are based on data obtained by brokers, agents, third-party aggregators and Multiple Listing Services from July 2009 through Aug. 1, 2010. The data did not include foreclosure properties.
Trulia updates its figures monthly, and August will be the fourth month in a row in which national price reduction levels increased. The average discount on price-reduced homes is 10% off the original listing price. The total dollar amount slashed from home prices in America’s 50 largest cities was $30.1 billion.
Of America’s 50 largest cities, half of the homes for sale were reduced by 30% or more. New York, Las Vegas and San Diego each experienced a significant increase in the amount of price reductions month-over-month, but Minneapolis had the highest percentage of price reductions overall. Moreover, 42% of all of the properties listed in Minneapolis decreased in price. The city itself has slashed $33.8 million in reductions since Trulia began compiling the data in July 2009.
Conversely, Oakland, Calif., has seen the smallest amount of reductions. There, only 17% of sellers decreased the price of their property during the past year. You can check here for a full breakdown of the surveyed cities.
What else do you need to know if you’re getting ready to hit up the housing market? MainStreet has tips for both buyers and sellers!