Price Reductions Unchanged as Sellers Wait to See How Aggressive Buyers are during Summer Season

RISMEDIA, June 18, 2010—Trulia.com, smart real estate search to help you make better decisions, recently announced that 22% of listings currently on the market in the United States as of June 1, 2010 experienced at least one price reduction, which is a slight decrease from 23.6% in June 2009. The total dollar amount slashed from home prices was $26.7 billion and the average discount for price-reduced homes continued to hold at 10% off of the original listing price.

“Sellers are optimistic heading into the summer season because of the strong sales figures from the spring. The spring sales were fueled by the expiration of the tax credit and my concern is that this heavy activity is providing sellers with a false state of optimism,” said Pete Flint, co-founder and CEO of Trulia. “We are already starting to see rising inventory levels and I believe this will be the story of the summer. For the unforeseen future, buyers will continue to have the negotiating power and I expect we will see sellers get aggressive via price cuts throughout the summer.”

Biggest Winners and Losers
Cities in the Western U.S. experienced the largest decreases in price reductions compared to the previous year. Las Vegas, NV led the way with a 67% decrease and six California cities saw a decrease in price reductions of 24% or more, including Oakland, San Jose, Los Angeles, Sacramento, San Francisco and San Diego.

On the other end of the spectrum, cities in the Midwest and South experienced some of the largest percentage increases in price reductions in year-over-year comparison. Kansas City, MO jumped 55% from June 2009 to June 2010, while other cities such as Arlington, TX, Cleveland, OH, Louisville, KY and Houston, TX all saw increases in price reductions of 30% or more.

A Class of Its Own
For the second month in a row, Minneapolis, MN saw 40% of its listings reduced in price. No other city has reached this mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at 8%, the city’s total dollar amount slashed from home prices was $26.4 million.

Luxury Market Holds Steady Post Tax Credit Incentive
Price reduction levels for luxury homes (those listed at $2 million and above) continue to hold steady with 21% of homes seeing a price reduction and with an average reduction of 14%. Homes in this category account for the less than 2% of total inventory but account for almost 25% of total dollars slashed off all the homes for sale.

For more information, visit www.trulia.com.

Let us know what you think or add to our blog by writing a comment.

Blog post written by the Dowell Taggart Team of RE/MAX Best Associates

Your Kansas City Real Estate Marketing Masters!

Your Olathe Real Estate Marketing Masters!

Your Overland Park Real Estate Marketing Masters!

Follow us on Twitter

Be our fan Facebook

Friend us on Facebook

Network with us on Ning

Follow us on Social Media

Search 21,000+ Kansas City Homes For Sale including foreclosures, short sales, luxury homes and more

Find out the value of your Kansas City home for "FREE" and learn how to save on the real estate commission  Discount Real Estate Commission

How would you like to save thousands on your next Kansas City home purchase? Click here to find out how.