Price reductions
Since Trulia.com began tracking national home price reduction levels in April 2009, 19% of the current listings on the market experiencing at least one price cut represents the first time these numbers have dropped below 20%, according to Trulia.
Last month, price reduction levels were 10% higher and the current dollar amount reduced from home prices dipped to $21.6 billion, with an average price cut of 11%.
The national data is intriguing
From February 1 to March 1 of this year, these five cities experienced the biggest drop in price reductions:
- Charlotte, NC – 28% drop
- Colorado Springs, CO – 19% drop
- Houston, TX – 19%
- Raleigh, NC – 19%
- Jacksonville, FL – 17%
For $1M+ homes, these five cities experienced larger discounts compared to the national average:
- Columbus, OH – 35% off
- Mesa, AZ – 22% off
- Cleveland, OH – 20% off
- Baltimore, MD – 18% off
- Las Vegas, NV – 18% off
Nationally, the top five cities with the highest number of listings experiencing price reductions:
- Milwaukee, WI – 33% of listings with price reductions
- Phoenix, AZ – 31%
- Mesa, AZ – 31%
- Memphis, TN – 31%
- Baltimore, MD – 30%
Ken Shuman, head of communications at Trulia told Reuters, “Did we pull all of our qualified buyers forward, and what’s the demand going to be like overall whether there is a credit or not come the big selling season? That’s the biggest challenge coming off of the tax credit.”
John Kalinowski
March 10, 2010 at 9:37 am
Lani – I wonder if that just means all the homes that reduced their prices to proper levels have already sold, and all that’s left on the market are the overpriced properties? It is a little nerve-wracking to think what will happen after the tax credits expire. Will we have no buyers and lots of overpriced inventory? Will be an interesting summer!
Nashville Grant
March 16, 2010 at 3:55 pm
Perhaps some of these cities are simply the most realistic and ahead of the curve while the rest of us still have the large price decline to come? Then again, Memphis is on this list ;-o