SOURCE: Trulia

Trulia

June 16, 2010 06:00 ET

Price Reductions Unchanged as Sellers Wait to See How Aggressive Buyers Are During the Summer Season

Slow Start to the Summer Real Estate Season Is Cause for Concern for Sellers

SAN FRANCISCO, CA--(Marketwire - June 16, 2010) -  Trulia.com (www.trulia.com), smart real estate search to help you make better decisions, today announced that 22 percent of listings currently on the market in the United States as of June 1, 2010 experienced at least one price reduction, which is a slight decrease from 23.6 percent in June 2009. The total dollar amount slashed from home prices was $26.7 billion and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price.

"Sellers are optimistic heading into the summer season because of the strong sales figures from the spring. The spring sales were fueled by the expiration of the tax credit and my concern is that this heavy activity is providing sellers with a false state of optimism," said Pete Flint, co-founder and CEO of Trulia. "We are already starting to see rising inventory levels and I believe this will be the story of the summer. For the unforeseen future, buyers will continue to have the negotiating power and I expect we will see sellers get aggressive via price cuts throughout the summer."

Biggest Winners and Losers
Cities in the Western U.S. experienced the largest decreases in price reductions compared to the previous year. Las Vegas, NV led the way with a 67 percent decrease and six California cities saw a decrease in price reductions of 24 percent or more, including Oakland, San Jose, Los Angeles, Sacramento, San Francisco and San Diego. The following U.S. cities experienced the biggest decreases in price reductions from June 1, 2009 to June 1, 2010.

Winners:

City   State   June 1, 2009   June 1, 2010   Percentage Decrease
Las Vegas   NV   30%   10%   67%
Oakland   CA   27%   13%   52%
San Jose   CA   27%   16%   41%
Honolulu   HI   31%   19%   39%
Los Angeles   CA   32%   22%   31%
Sacramento   CA   23%   17%   26%
San Francisco   CA   28%   21%   25%
San Diego   CA   21%   16%   24%
El Paso   TX   19%   15%   21%
New York   NY   29%   23%   21%
Austin   TX   30%   24%   20%

On the other end of the spectrum, cities in the Midwest and South experienced some of the largest percentage increases in price reductions in year-over-year comparison. Kansas City, MO jumped 55 percent from June 2009 to June 2010, while other cities such as Arlington, TX, Cleveland, OH, Louisville, KY and Houston, TX all saw increases in price reductions of 30 percent or more. The following U.S. cities experienced the biggest increases in price reductions from June 1, 2009 to June 1, 2010.

Losers:

City   State   June 1, 2009   June 1, 2010   Percentage Increase
Kansas City   MO   20%   31%   55%
Arlington   TX   18%   26%   44%
Cleveland   OH   22%   30%   36%
Louisville   KY   21%   28%   33%
Houston   TX   19%   25%   32%
Minneapolis   MN   31%   40%   29%
Phoenix   AZ   26%   33%   27%
Fresno   CA   15%   19%   27%
Fort Worth   TX   20%   25%   25%
Milwaukee   WI   29%   36%   24%
Colorado Springs   CO   22%   27%   23%
Mesa   AZ   25%   30%   20%

A Class of Its Own
For the second month in a row, Minneapolis, MN saw 40 percent of its listings reduced in price. No other city has reached this mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at eight percent, the city's total dollar amount slashed from home prices was $26.4 million.

Luxury Market Holds Steady Post Tax Credit Incentive
Price reduction levels for luxury homes (those listed at $2 million and above) continue to hold steady with 21 percent of homes seeing a price reduction and with an average reduction of 14 percent. Homes in this category account for the less than 2 percent of total inventory but account for almost 25 percent of total dollars slashed off all the homes for sale.

Click here to see the complete June 2010 Price Reduction Data for the Top 50 U.S. Cities

Click here to see an infographic of year-over-year changes for the biggest winner and losers

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 empowers them to make more informed decisions regarding which home to purchase and helps consumers get the most home for their dollar. It also helps 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 June 1, 2010 and tracks all price reductions from June 1, 2009 to June 1, 2010. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and Multiple Listing Services (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.com is the most comprehensive real estate site focused on empowering you with smarter tools to help you find the right home. Whether you are an active buyer, seller or real estate enthusiast, Trulia gives you all the information you care about from rich property data to a personalized search experience. We are focused on helping you find the home that truly meets your needs, and delivers on what's most important for you. Ultimately, we built a smart real estate search experience bringing together local information, community insights, market data and national listings all in one place, all for you.

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