Price reductions for home listings currently on the market have increased for the third consecutive month to 26% and account for a total reduction of more than $29 billion nationwide, according to Trulia.com. But despite the increase of price-reduction figures to historic levels, 24 of the 50 largest U.S. cities held steady or dropped compared with data from the previous month.
This represents a 50% increase from August, which saw 16 cities report positive or unchanged price-reduction data, Trulia says. The reduction percentage remains unchanged at 10% ($33,892 average price reduction).
‘On the surface, the latest price-reduction data carries with it conflicting messages,’ observes Pete Flint, co-founder and CEO of Trulia. "Nationwide, sellers continue to slash prices and this is a worrisome trend. However, we're seeing gradual improvement in many U.S. cities – several for consecutive months.’
In California, price reductions have increased steadily since the tax credit for new home buyers expired on April 30. Despite this trend, seven of the state's eight largest cities report price-reduction figures below or in line with the national average. Furthermore, five California cities show improvement when compared with data captured one year earlier.
Trulia reports that sellers are ramping up their price cuts in the Midwest. Price reductions in Minneapolis, for example, reached an all-time high of 43%. Milwaukee also crossed the 40% threshold, representing the first time two U.S. cities have reported price cuts above 40% since Trulia began tracking home-price reductions in April 2009.
Trulia's price-change data is derived from live listings on Trulia.com as of June 1 and track all price reductions from Sept. 1, 2009, to Sept. 1, 2010. The data do not include foreclosure properties.