Price Slashed on 23.6% of Listed Homes

Nearly one in four US homes for sale today have had at least one price reduction, as sellers come to grips with the reality of a weakening economy and a housing market still groping along toward bottom.

Total reductions currently mount $27bn dollars, said Truila.com today.

Major metropolitan areas are feeling much of the pain. Of the top 50 most populated cities, 33 have seen 25% or more of listed homes reduced from their original asking price, higher than the 23.6% national average. Some cities have seen over 30% of homes reduced, including Jacksonville, Fla., Tucson, Ariz., Boston and Los Angeles, among others.

And of those homes reduced, the average reduction sits at 10.6% of original asking price — an encouraging sign for buyers, nonetheless.

“Everyone wants to think they are getting the best deal available,” said Pete Flint, Trulia co-founder and CEO, who said price reductions are sparking renewed interest in potential buyers.

Luxury buyers might snag some of the best deals, as an average of 14.3% of the original asking price is being slashed off the listing price of homes valued over $2m, compared to only 9.7% being knocked off homes under the $2m price tag.

Foreclosure-stricken neighborhoods, however, are seeing home listing prices drop most drastically, Trulia.com said. Detroit homeowners on average reduce their homes by 23%, while Las Vegas sellers reduce their homes by 16% and Miami cuts prices by 15%.

Write to Kelly Curran.