October 28th, 2010 8:41 PM by Lehel S.
SAN FRANCISCO, October 20, 2010 – Trulia.com (www.trulia.com), a top site for homebuyers, sellers and renters, announced today that price reductions for home listings currently on the market in the U.S. have increased for the fourth consecutive month to an all-time high of 27 percent and account for a total reduction of more than $30.7 billion nationwide. A deeper look into the data shows a continual and dramatic price reduction increase in many cities that began in June 2010.
“We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homessold before the holidays,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009."
Highest Percentage Increase in Price Reductions: June to Oct. 2010
% of Price Reductions in October 2010
% of Price Reductions in June 2010
Las Vegas, NV
San Diego, CA
San Jose, CA
El Paso. TX
Virginia Beach, VA
Price Reductions Increasing Across U.S., Highest Among Major Western Cities
Since June 2010, the five largest increases in price reductions have occurred in the Western U.S., with Las Vegas registering the most substantial increase (194 percent). Five major California cities remain beneath the national average in October, but price reduction rates in all seven of California’s largest cities have increased dramatically since June, with San Jose, Fresno, Sacramento and San Diego seeing the largest increases. Only three of America’s largest cities - Miami, Detroit and New York - have seen a decline in price reductions since June.
“As robo-signing news developments and foreclosure freezes create uncertainty about buying bank-owned properties – particularly in cities like Las Vegas where foreclosures have been exorbitant – low interest rates and wide-scale price reductions may give individually-owned homes a real desirability boost in the eyes of buyers in the coming months,” Nelson said. “This might help home sellers who have had a hard time pricing and marketing their homes to compete with distressed properties get their homes sold before the end of the year.”
Price Reductions Increase Beyond Seasonal Expectations: Cities with Largest Year-Over-Year Increases
% of Price Reductions in October 2009
% Y-O-Y Increase
San Antonio, TX
Trulia Price ReductionsTrulia 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. Price reduction data also helps home sellers price their homes competitively as more homes come onto the market.
Methodology: To view detailed methodology, click here.
Data Chart: October 2010 Price Reductions: top 50 cities based on population – to see data chart featuring all 50 cities, click here.