Sellers Cut Listing Prices on 21% of Homes: Trulia
As of Jan. 1, 2010, sellers cut listing prices on 21% of homes currently on the US market, according to the real estate site, Trulia.com. It marks the second-straight month of decreases and the lowest level since Trulia began tracking price reductions in April 2009. As a total, the dollar-amount of cut listing prices dropped to $21.2bn a 14% decrease from $24.7bn in December. The average discount for the homes stayed at 11% from the original listing price. It’s important to note that these are listing prices cut by the sellers and not necessarily homeowners. These listing prices are not real indicators of sales price, but how much a particular seller is willing to discount a home. The South region of the US had the least amount of price reductions as 20% of its current listings experienced at least one price cut. By contrast, the Northeast had a 12% decrease, the biggest drop in price reductions compared to the month before than any other region. On the municipal level, Los Angeles, Calif. had a 46% decrease in price reductions, leading all cities. New York had a 36% decrease in price reductions, the second-steepest cut in listing prices. For higher-end homes, those listed above $2m continue to see the largest cuts as the average discount rose to 15% for the first time since Trulia started tracking the reductions in April 2009. "Consumers have a golden window of opportunity to find a great home and take advantage of the tax credit before mortgage rates start to rise," said Pete Flint, Trulia CEO. "Historically low interest rates currently available and tax credit incentives are the ultimate price reductions for home buyers. As rates rise throughout the course of the year, buyers will need to adjust their purchase price ceiling." Write to Jon Prior.