Sellers Still Slashing Home Prices

By
Real Estate Agent with California Lifestyle Realty DRE# 1780607
SELLERS FEEL THE HEAT AS THEY CONTINUE TO SLASH HOME PRICES THIS SUMMER






Down Economy and High Levels of Home Inventory Put Sellers at Disadvantage as Prices Continue to Drop

 

According to data compiled by Trulia, they announced that 24 percent of listings currently on the market in the United States as of July 1, 2010 experienced at least one price reduction. This represents a nine percent increase from the previous month. The total dollar amount slashed from home prices was $27.3 billion and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price.

 

Many of the largest U.S. cities saw significant increases in price reduction levels this month with 22 of the top 50 cities across the U.S. experiencing price reduction levels at 30 percent or more, compared to just 10 cities in the previous month. Minneapolis leads the way with 40 percent of its home listings experiencing at least one price cut. This is the third straight month that Minneapolis has held the top spot and no other city has reached the 40 percent mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at nine percent, the city’s total dollar amount slashed from home prices was $30.1 million.

 

“Sellers are feeling the heat this summer as the economic recovery simmers down and home inventory levels climb,” says Pete Flint, co-founder and CEO of Trulia. “We’re seeing more and more sellers reduce their home listing prices to attract potential buyers, who definitely have the upper hand in negotiations this season. The slow start to the summer season is a major concern that we are heading towards a double-dip in the second half of this year.”


Western U.S. Leads with Price Reduction Increases

In the first half of 2010, cities in the Western U.S. were experiencing a decrease in reductions.  This month, the same cities experienced some of the largest surges in price reductions compared to the previous month.  Oakland increased 38 percent month-over-month and San Diego saw reductions increase by 25 percent. Additionally, Honolulu experienced a 21 percent increase from the previous month and Las Vegas increased by 20 percent. Texas cities also saw significant increases in price reductions with San Antonio and El Paso increasing by price 21 percent and 20 percent respectively. The following U.S. cities experienced the biggest increases in price reductions from June 1, 2010 to July 1, 2010:

 

City

State

June 2010

July 2010

Percentage Change

Oakland

CA

13%

18%

38%

San Diego

CA

16%

20%

25%

Omaha

NE

25%

31%

24%

Virginia Beach

VA

26%

32%

23%

Honolulu

HI

19%

23%

21%

San Antonio

TX

19%

23%

21%

El Paso

TX

15%

18%

20%

Las Vegas

NV

10%

12%

20%

 

Luxury Market Still Feeling The Pain

Price reduction levels for luxury homes (those listed at $2 million and above) continue to provide large discounts with an average of 14 percent off of the original listing price. The average discount for homes priced less than $2 million remains at 9 percent.

 

The chart above confirms that the Luxury and Resort areas are still reducing prices! 

For help finding a Resort, Golf, or Luxury home call Kathy Schowe at The Lori Bowers Group in La Quinta, CA!

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Kathy Schowe   760.333.8886  

California Lifestyle Realty  California Lifestyle Realty     SchoweProperties.com                                               

        

                  
                                   

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lori Bowers 07/28/2010 04:22 AM
Topic:
Real Estate Market Trends
Groups:
Realtors®
Out Of The Box!
How to survive and prosper in todays market!!
"Whacked"!!!
Club Chaos
Tags:
luxury foreclosures
resort discount homes
price reductions in california

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Rainmaker
2,097,747
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Good article.  It's happening in Georgia too.  Add in lower appraisals and it's becoming a mess.

Jul 26, 2010 10:42 AM #1
Rainmaker
268,151
John Thomas
E3 Green HOMES - Boulder, CO
EcoBroker, MSEE, MBA

Great summary of the national market...thanks for the update.

Jul 26, 2010 01:14 PM #2
Rainmaker
491,731
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

It's going to get worse before it gets better. Even in the high end market deals can be made.

Jul 26, 2010 02:56 PM #3
Rainmaker
101,482
Matthew Naumann
Exit Realty Charleston Group - Goose Creek, SC
Goose Creek, SC Real Estate Agent

Kathy,

Great Post.  This is truly sign the bottom of market, if are at bottom has not been firmly established yet.  There are definitely great deals out there for buyers who want to take advantage of motivated sellers and short sales.

Thanks for sharing,

Matt Naumann

 

Jul 27, 2010 01:03 AM #4
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