Northeast Continues with Most Homes Reduced
The Northeast continues to see the highest level of price reductions, with 29% of current listings experiencing at least one price cut - Connecticut, Massachusetts, Rhode Island and New Hampshire are all seeing over 30% of listings with price reductions. (Regions according to the U.S. Census Bureau)
-Northeast - 29% of listings with price reductions
-Midwest - 28% of listings with price reductions
-West - 25% of listings with price reductions
-South - 24% of listings with price reductions
"With mortgage rates still low and the expansion of the tax credit to trade-up buyers, we could see significant inventory - both new and 'shadow inventory' - hit the market during the next four-to-six months," said Pete Flint, Trulia co-founder and CEO. "Inventory levels this quarter are poised to be atypical of a normal real estate market, which could create tremendous pressure on sellers to price their homes competitively and move their property before the tax credit expires on April 30th."
Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to November 2009 include:
-Kansas City, MO - 59% increase in price reductions
-Colorado Springs, CO - 43% increase in price reductions
-Omaha, NE - 39% increase in price reductions
-Louisville, KY - 37% increase in price reductions
-Milwaukee, WI - 30% increase in price reductions
Cities showing signs of the highest percentage of declines for listings with price reductions from June 2009 to November 2009 include:
-Las Vegas, NV - 34% decrease in price reductions
-San Jose, CA - 25% decrease in price reductions
-San Antonio, TX - 18% decrease in price reductions
-Los Angeles, CA - 16% decrease in price reductions
-Oakland, CA - 16% decrease in price reductions
Luxury Market Still Hardest Hit
Luxury homes (those listed at two million dollars and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.1 billion in home price reductions.
For more information, visit www.robertjrussell.com.
