Dennis Norman
According to a report just issued by Trulia, a company whose website allows you to search for homes for sale throughout the U.S., 25 percent of homes currently on the market in the United States as of August 1, 2009 have experienced at least one price cut. The percentage of price reductions has continued to increase month-over-month for the past three months.
Trulia’s report indicates the total of price cuts in the past 3 months totals $27.8 billion. Major metros across the U.S. continue to be the hardest hit with 66 percent of the top 50 markets having percentage-of-price reduction levels above the national average.Obviously price reductions on listings are not necessarily a very scientific indication of market conditions but perhaps a better reflection of whether or not sellers are being realistic and pricing their homes accurately based upon current conditions. Having said that though, I do think it is realistic to believe that in good markets we don’t see a very high rate of price reductions so a higher rate would be indicative of a declining market in terms of value.
Pete Flint, Trulia co-founder and CEO said “we are excited to see industry reports showing positive signs in the real estate industry, but there is still a long way to go before we’ll see a real recovery for the U.S. as a whole. Even as the volume of sales are starting to rise nationally, the median home price continues to fall. The reality is, today’s sellers need to price aggressively to avoid reductions. Consumers are looking for value and when they find a good deal they are taking advantage of market conditions.”
Below are the top 50 cities in Trulia’s price reduction report.
August Price Reductions – Top 50 U.S. Cities
|
Rank |
City |
State |
Percent of Listings with Price Reductions |
Average Reduction (%) |
Total Amount of Reductions |
|
1 |
Jacksonville | FL |
38% |
11% |
$ 109,292,808 |
|
2 |
Portland | OR |
35% |
9% |
$ 56,833,504 |
|
3 |
Milwaukee | WI |
34% |
8% |
$ 19,053,276 |
|
4 |
Minneapolis | MN |
34% |
9% |
$ 25,641,504 |
|
5 |
Boston | MA |
34% |
8% |
$ 51,887,832 |
|
6 |
Seattle | WA |
34% |
8% |
$ 67,896,023 |
|
7 |
Albuquerque | NM |
33% |
7% |
$ 26,967,636 |
|
8 |
Chicago | IL |
33% |
9% |
$ 245,661,105 |
|
9 |
Indianapolis | IN |
32% |
8% |
$ 32,293,646 |
|
10 |
Raleigh | NC |
32% |
7% |
$ 39,416,328 |
|
11 |
Baltimore | MD |
32% |
11% |
$ 41,367,984 |
|
12 |
Columbus | OH |
32% |
9% |
$ 18,434,080 |
|
13 |
Memphis | TN |
32% |
9% |
$ 24,687,432 |
|
14 |
Honolulu | HI |
32% |
10% |
$ 49,733,985 |
|
15 |
New York | NY |
31% |
13% |
$ 975,823,368 |
|
16 |
Austin | TX |
31% |
8% |
$ 111,271,347 |
|
17 |
Charlotte | NC |
31% |
8% |
$ 91,813,500 |
|
18 |
Nashville | TN |
30% |
7% |
$ 27,092,548 |
|
19 |
San Francisco | CA |
29% |
12% |
$ 98,367,841 |
|
20 |
Tucson | AZ |
29% |
10% |
$ 68,994,021 |
|
21 |
Atlanta | GA |
28% |
11% |
$ 182,908,054 |
|
22 |
Colorado Springs | CO |
28% |
7% |
$ 27,994,590 |
|
23 |
Miami | FL |
27% |
15% |
$ 241,347,648 |
|
24 |
Sacramento | CA |
27% |
11% |
$ 18,500,794 |
|
25 |
Long Beach | CA |
27% |
11% |
$ 30,755,496 |
|
26 |
Tulsa | OK |
27% |
6% |
$ 12,295,404 |
|
27 |
Omaha | NE |
27% |
6% |
$ 12,040,319 |
|
28 |
Phoenix | AZ |
26% |
13% |
$ 84,109,665 |
|
29 |
Philadelphia | PA |
26% |
8% |
$ 49,731,744 |
|
30 |
Mesa | AZ |
26% |
13% |
$ 22,494,320 |
|
31 |
Los Angeles | CA |
26% |
12% |
$ 251,072,040 |
|
32 |
Oklahoma City | OK |
26% |
6% |
$ 8,963,910 |
|
33 |
Virginia Beach | VA |
26% |
8% |
$ 32,580,954 |
|
34 |
Kansas City | MO |
25% |
8% |
$ 19,582,200 |
|
35 |
San Jose | CA |
25% |
9% |
$ 31,123,090 |
|
36 |
Washington | DC |
25% |
10% |
$ 58,717,344 |
|
37 |
Fresno | CA |
25% |
11% |
$ 9,092,972 |
|
38 |
Oakland | CA |
24% |
10% |
$ 11,064,302 |
|
39 |
Cleveland | OH |
23% |
11% |
$ 8,438,192 |
|
40 |
San Antonio | TX |
22% |
7% |
$ 51,026,646 |
|
41 |
El Paso | TX |
22% |
7% |
$ 13,996,080 |
|
42 |
Denver | CO |
21% |
9% |
$ 44,730,360 |
|
43 |
Las Vegas | NV |
20% |
16% |
$ 163,680,855 |
|
44 |
Houston | TX |
19% |
8% |
$ 49,285,116 |
|
45 |
San Diego | CA |
18% |
10% |
$ 59,189,418 |
|
46 |
Dallas | TX |
18% |
9% |
$ 79,597,978 |
|
47 |
Arlington | TX |
17% |
6% |
$ 4,002,345 |
|
48 |
Detroit | MI |
17% |
22% |
$ 11,107,782 |
|
49 |
Fort Worth | TX |
17% |
7% |
$ 12,845,904 |
|
50 |
Louisville | KY |
14% |
7% |
$ 6,356,070 |
Related posts:
- Signs of Stabilization in U.S. Real Estate Market — Home Price Reduction Levels Drop 26 Percent
- Twenty-three percent increase in price reductions by home sellers
- Fourth consecutive month that over 25 percent of homes for sale have had price cut
- National Home Prices Back to 2004 Levels
- Home price reductions by sellers drop for second consecutive month
Hi Cathy,
Thanks for your comment…we are both on the same page..
Believe me, I can’t wait to see a housing recovery, but….I think the economy is in too big of mess at this point….some jobs for folks would definitely be a plus..
Have a good weekend,
Dennis
Home price reduction is one indication of the result of global economic crisis that we are experiencing right now.
I have also read from an article that Trulia, Inc. has announced that 1 in 4 homes experience a price reduction during the past 12 months. So, there is a shift in the risk of home price reductions wherein I agree there is still a long way to go before we’ll see a real recovery for the U.S. as a whole.