Price Reductions Rise in September

By
Real Estate Agent with Brentwood Real Estate, Short Sales, Foreclosures, HAFA BRE# 01446530

Price Reductions Rise to 26% in September

A recent Trulia report found 26% of homes listed for sale nationwide experienced at least one price reduction in September. The average reduction for price-reduced homes remained unchanged at 10 % of the listing price.

In California, price reductions have increased steadily since the federal home buyer tax credit expired on April 30. Despite this, seven of the States's eight largest cities report price reductions figures below or in line with the national average.

  • Oakland
  • San Jose
  • Los Angeles
  • San Diego
  • San Francisco
  • Sacramento
  • Fresno
  • Long Beach

Furthermore, five of these cities show improvement when compared with data captured one year earlier.

  • Oakland
  • San Jose
  • Los Angeles
  • San Francisco
  • Sacramento
  Sept. 1, 2009 Sept. 1, 2010

Oakland

21% 19%
San Jose 26% 20%
Los Angeles 26% 22%
San Francisco 28% 24%
Sacramento 26% 26%

 

What does this mean?

The lower % of reductions means listed price is closer to market value.

If list price is too high, more reductions would be needed.

And, fewer price reductions means a more stable market.

That's a good thing!

 

 

Posted by

 

John Giggy, Realtor & Foreclosure Specialist
Keller Williams Realty


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Comments (2)

Gail C. Harris
Resource Network, LLC SFR, AHWD, ACRE, SMAR Board Director - Chesapeake Beach, MD
Reach the BEACH with Gail C. Harris (cell: 703.868

However, last month San Diego reported an 11% increase in home prices from a year ago in 2009! 

Oct 04, 2010 01:06 PM
John Giggy
Brentwood Real Estate, Short Sales, Foreclosures, HAFA - Brentwood, CA

Gail - Interesting. This goes to show how we must be paying attention to our own market. Here in Brentwood our median sales price went up 5%. What do you predict in your market?

Oct 04, 2010 02:56 PM