Trulia, a San Francisco based company today announced that 23.6 percent of current homes on the market in the United States have experienced at least one price cut, totaling $27.4 billion in reductions. The average price-reduced home has seen a listing price reduction of 10.6 percent.
In the Boston area, 32 percent of the homes on the market have reduced their price.
Major metropolitan areas continue to be hit hard by price reductions. Of the top 50 cities in the U.S. based on population, 33 have seen 25 percent or more of home listings reduced in price, higher than the national average of 23.6 percent. U.S. cities that have seen at least 30 percent of homes reduced in price include:
• Jacksonville, Florida – 36 percent
• Tucson, Arizona – 32 percent
• Boston, Massachusetts – 32 percent
• Los Angeles, California – 32 percent
• Columbus, Ohio – 31 percent
• Dallas, Texas – 31 percent
• Honolulu, Hawaii – 31 percent
• Minneapolis, Minnesota – 31 percent
• Austin, Texas – 30 percent
• Washington, DC – 30 percent
• Baltimore, Maryland – 30 percent
• Las Vegas, Nevada – 30 percent
“Summer time is the peak season for buying and selling, and with some of the lowest prices in the last decade, we expect to it be a busy season,” said Pete Flint, Trulia co-founder and CEO. “Everyone wants to think they are getting the best deal available and price reductions are helping to spark a renewed interest in the U.S. real estate market.”
The Foreclosure Effect
The national average for price reductions on current home listings is 10.6 percent, but sellers in the areas hardest hit by foreclosures are slashing prices the most. Detroit home owners on average reduce their homes by 23 percent, while Las Vegas sellers reduce their homes by 16 percent and Miami sellers reduce their homes by 15 percent. Phoenix and Mesa are also experiencing deep price reductions with 13 percent slashed off the original listing price.
Luxury Market Getting Hit Hard
24 percent of homes with a selling price greater than $2 million are seeing price reductions compared to 23.6 percent of homes on the market for the less than $2 million. While the percentage of homes seeing discounts are almost identical, discounts on luxury homes are significantly more with 14.3 percent being slashed off the original listing price compared to only 9.7 percent of homes under the $2 million dollar price tag.
View Boston condo price reductions for sale.