Trulia: Fewer sellers cutting home prices
By South Florida Business Journal - January 12, 2010Fewer people selling their homes cut their listing price in December, according to the latest numbers from San Francisco-based Trulia.com.
Nationwide, prices on 21 percent of homes on the market as of Jan. 1 were cut at least once, down from 22 percent in the previous month and down from 25.6 percent two months ago.
In South Florida, West Palm Beach had the highest percentage of homes with price reductions – 23 percent – followed by Miami, with 21 percent, and Fort Lauderdale, with 17 percent.
The average price reduction in West Palm Beach was 14 percent off the listing price, representing $26.1 million in price cuts.
The average price reduction in Miami was 15 percent, representing about $179 million in price cuts.
In Fort Lauderdale the average price reduction was 13 percent, representing $61 million in total reductions.
The number of major U.S. cities with price reduction levels at 30 percent was cut in half in January, with just seven cities experiencing a reduction of 30 percent or more.
“Consumers have a golden window of opportunity to find a great home and take advantage of the tax credit before mortgage rates return to the 6 percent level and above,†Trulia co-founder and CEO Pete Flint said in a news release.
Those looking to take advantage of the homebuyer credit have until April 30 to sign contracts and until the end of June to close on the sale.
Several cities have experienced a significant decrease in price reductions, including:
* Los Angeles, down 46 percent
* New York, down 36 percent
* Memphis, Tenn., down 34 percent
* Minneapolis, down 33 percent
* Honolulu, down 33 percent
Jacksonville saw the highest percentage of listings with a price reduction, at 36 percent, followed by Portland, Ore., and Milwaukee (33 percent); and Omaha, Neb., and Seattle (32 percent); and Tucson, Ariz., and Charlotte, N.C. (30 percent).
Those homes priced at $2 million and above continue to be hit the hardest by price reductions and are responsible for 24 percent of the $21.2 billion in cuts.
The average discount for homes priced less than $2 million held steady, at 10 percent.
Trulia gathers its data from live listings on its Web site, and does not include foreclosures or short sales.
<== Back
