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Price Reductions on the Rise

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Real Estate Broker/Owner with Deaton Group Realty

Number of Price Reductions Rise in Some Cities

Price reductions on properties for sale have increased for the third consecutive month to 26 percent, according to statistics provided by Trulia.com.

While home sellers in some cities cut prices aggressively, those in 24 of the 50 cities tracked by Trulia held steady.

"We're seeing gradual improvement in many U.S. cities - several for consecutive months," said Pete Flint, CEO of Trulia. "What this shows us is that while we're in for a long climb to bring stability back to the housing market and while it's going to take time, that climb appears to at least be underway in some parts of the country."

Cities with the highest percentage of price reductions in September were:
1. Minneapolis, 43 percent
2. Milwaukee, 40 percent
3. Phoenix, 39 percent
4. Mesa, Ariz., 37 percent
5. Albuquerque, N.M., 35 percent
6. Memphis, Tenn., 35 percent
7. Boston, 35 percent
8. Tucson, Ariz., 34 percent
9. Baltimore, 34 percent
10. Dallas, 34 percent

Cities with the lowest percentage of price reductions in September:
1. Detroit, 16 percent
2. Miami, 18 percent
3. Oakland, Calif., 19 percent
4. El Paso, Texas, 19 percent
5. San Jose, Calif., 20 percent
6. New York, 20 percent
7. Los Angeles, 22 percent
8. San Antonio, 23 percent
9. Denver, 23 percent
10. Fort Worth, Texas, 23 percent

Source: Trulia.com (09/15/2010)

The Little Rock area does not seem to have taken that drastic of a drop in home prices overall.  More like 1-2% around here.  BUT, those sellers who want to sell their home soon, must have their home priced to be seen as a value.  Our market is still only 3-4 months to sell, typically.  After 6 months on the market at market value, I recently dropped a home by 20% and it sold 2 days later.  For another, I dropped it by 10% and received an offer in a week.

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