Sellers Reduce Nearly 25% of List Prices on Trulia in 2010
Real estate sellers made at least one price reduction on 22% of listings currently on the market in the US through April, according to the real estate listings site, Trulia.com. The discounted listings through April increased 10% from March, when 20% of the properties received a price reduction. The average discount held at 10%, totaling $25bn in reductions. “With more than a year of the federal government’s involvement, we are now re-entering the free market system. As we readjust to the free market, we expect to hit turbulence in some markets,” says Pete Flint, Trulia co-founder and CEO. Cities in the Great Plains had the largest surge in price reductions from March. In Omaha, Neb., 25% of the listings received a price reduction, an increase of 62%. There was a 27% increase in discounted properties in Tulsa, Okla. Southern California markets had large spikes as well. Price-reduced properties in San Diego increased 39%, and Long Beach discounted listings increased 22%. “We won’t know the true severity of the tax credit expiration until the conclusion of the peak home buying season in the summer months. Only then will we have a better sense if the US housing market can stand on its own two feet,” Flint said. Write to Jon Prior.