SOURCE: Trulia

Trulia

November 11, 2009 06:00 ET

More Than 1 in 4 Homes for Sale in Trulia's November Price Reduction Report Have Seen a Reduction

Inventory Could Significantly Increase in Q4 as Sellers Take Advantage of Newly Extended and Expanded Tax Credit During Typically Slow Winter Season

SAN FRANCISCO, CA--(Marketwire - November 11, 2009) - Trulia, Inc. (www.trulia.com), the best place to start your real estate search, today announced that 25.6 percent of homes currently on the market in the United States as of November 1, 2009 have experienced at least one price cut during the past 12 months. More than 40 percent of the top 50 major metros across the U.S. are experiencing price reduction levels above 30 percent, significantly higher than the national average. The average discount for price-reduced homes continues to hold steady at ten percent off of the original listing price.

Northeast Continues With Most Homes Reduced

The Northeast continues to see the highest level of price reductions, with 29 percent of current listings experiencing at least one price cut -- Connecticut, Massachusetts, Rhode Island and New Hampshire are all seeing over 30 percent 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 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 percent being slashed from the original asking price compared to the national average of ten percent. Additionally, luxury homes represent less than two percent of all current listings on Trulia, but are responsible for 25 percent of the $28.1 billion in home price reductions.

November Price Reductions - Top 50 U.S. Cities


                                 Percent of
                                  Listings      Average
                                 with Price     Reduction   Total Amount of
Rank           City       State  Reductions       (%)         Reductions
-----    ---------------- ----- ------------  ------------  ---------------
1             Minneapolis    MN           39%            9% $    29,475,600

2               Milwaukee    WI           37%           10% $    25,690,944

3               Baltimore    MD           37%           11% $    44,897,200

4                Portland    OR           36%            9% $    59,145,328

5                 Memphis    TN           36%            9% $    24,065,038

6            Jacksonville    FL           36%           12% $   107,606,180

7                Columbus    OH           35%            8% $    17,365,026

8                 Seattle    WA           35%            9% $    70,704,197

9                  Boston    MA           33%            7% $    40,605,802

10                 Tucson    AZ           33%           11% $    69,459,570

11           Indianapolis    IN           33%            8% $    34,898,760

12            Kansas City    MO           33%            9% $    28,976,094

13                Raleigh    NC           32%            7% $    42,378,280

14                Chicago    IL           32%            9% $   210,448,126

15                  Omaha    NE           32%            7% $    15,680,028

16                 Dallas    TX           32%            7% $    88,960,032

17       Colorado Springs    CO           32%            7% $    31,827,413

18            Albuquerque    NM           32%            8% $    28,123,425

19              Charlotte    NC           31%           10% $   108,220,028

20                   Mesa    AZ           30%           13% $    24,638,800

21              Nashville    TN           30%            7% $    35,135,360

22           Philadelphia    PA           29%            9% $    64,572,690

23                 Austin    TX           29%            9% $    95,926,215

24                Atlanta    GA           29%           12% $   179,845,380

25                Phoenix    AZ           29%           13% $   101,506,119

26             Louisville    KY           28%            6% $    12,319,543

27          San Francisco    CA           28%            9% $    66,110,000

28                  Tulsa    OK           28%            6% $    13,816,696

29             Washington    DC           28%            9% $    48,286,245

30              Cleveland    OH           28%           13% $    11,421,730

31               Honolulu    HI           27%           10% $    39,414,540

32               New York    NY           27%           12% $   664,373,691

33                  Miami    FL           26%           15% $   227,679,232

34            Los Angeles    CA           26%           13% $   272,219,112

35          Oklahoma City    OK           26%            7% $    11,624,312

36         Virginia Beach    VA           25%            9% $    37,217,375

37             Sacramento    CA           24%           11% $    19,203,153

38             Long Beach    CA           24%           11% $    25,501,938

39             Fort Worth    TX           23%            8% $    24,892,092

40                Houston    TX           23%            7% $    97,660,686

41              Arlington    TX           23%            6% $     4,971,846

42                 Denver    CO           23%            9% $    50,041,824

43                Oakland    CA           23%            9% $     9,817,653

44                El Paso    TX           22%            9% $    19,107,920

45              San Diego    CA           21%           10% $    66,538,850

46               San Jose    CA           20%            8% $    21,319,770

47              Las Vegas    NV           19%           15% $   141,207,900

48                Detroit    MI           19%           25% $    10,309,852

49            San Antonio    TX           19%            7% $    40,838,670

50                 Fresno    CA           17%           11% $     5,588,850

Customized data for every state, county, city and ZIP across the US is available for the media by contacting pr@trulia.com

Trulia Price Reductions

Trulia is the first and only national real estate site to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today's market across all 50 states. Trulia's Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.

Providing home buyers with access to price reduction data will help them be better informed as they decide which home to purchase and will help ensure consumers get the most home for their dollar. It will also help home sellers price their homes competitively as more homes come onto the market.

Methodology: All price change data is from live listings on Trulia.com, as of November 1, 2009 and tracks all price reductions from November 1, 2008 to November 1, 2009. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and MLSs. The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site. The city level data is for listings within the city boundary, and not for metro areas.

About Trulia, Inc.

Trulia, Inc. has revolutionized real estate search by offering a rich, intuitive user experience to help consumers find homes for sale, track local price trends, compare properties and neighborhood data all at the hyper-local level. Trulia Voices, the largest real estate community on the web, allows home buyers, sellers, agents and real estate enthusiasts to ask questions, receive advice and blog on topics such as the buying and selling process, foreclosures, refinancing and more. Trulia's user-friendly search can also be accessed on more than 170 websites as a result of our media partnerships. Trulia has received a number of awards, including the 2008 People's Voice Webby Award in the real estate category. For more information, visit http://www.trulia.com/.

Contact Information

  • Media Contact:
    Paul Loeffler for Trulia
    Email Contact
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