SOURCE: Zip Realty

December 10, 2010 18:52 ET

CORRECTING and REPLACING Price-Reduced Listings Continue to Soar Over Last Year, Despite Sharp Drop in Inventory, According to ZipRealty's Monthly Price Reduction Index

EMERYVILLE CA--(Marketwire - December 10, 2010) -


November Price-Reduced Listings Up 24 Percent Over 2009 While Inventory Drops for Second Month in a Row

EMERYVILLE, Calif. (Dec. 10, 2010) - The number of price-reduced homes on the market this November increased dramatically compared to the same time last year, rising 24.1 percent according to ZipRealty's Price Reduction Index, a monthly review of MLS-listed properties in 26 markets surveyed by the real estate brokerage (www.ziprealty.com) (NASDAQ: ZIPR).

San Diego, Calif. shows the most dramatic change in price-reduced inventory, doubling from 2009 (2,613 listings) to 2010 (5,445 listings) with a 108.4 percent change. Three other California districts have also seen a huge year- over-year increase in the amount of reduced inventory, including San Francisco (100 percent), Orange County (91 percent), and Los Angeles (79 percent).

For the second straight month, total inventory dropped with November seeing a 3.8 percent decrease as compared to October. The percentage of inventory that has been reduced edged up .1 percent as the number of price-reduced listings fell at a slightly slower rate of 3.7 percent.

"Typically, November is a slower month for sales," said John Oldham, Director of Marketing for ZipRealty. "Inventory peaked in September and has dropped over the last two months. The increase in price-reduced listings is evidence that sellers are still trying to find the right price point to get the property to sell."

While some homeowners may wait until after the holidays to sell; those selling now are listing homes for lower prices as the median list price dropped 2.8 percent from October to $234,484.

Highlights of ZipRealty's November index include:

* Nearly half (48.4 percent) of listed homes in November included at least one price reduction, an increase of 24.1 percent over last year and .1 percent over October

* Compared to November 2009, price-reduced inventory grew by over 75 percent in 5 major markets: San Diego, San Francisco, Orange County, Los Angeles, and Las Vegas

* Inventory dropped 3.8 percent and the number of price-reduced homes on the market fell 3.7 percent compared to October

* The median list price dropped by 2.8 percent from October to $234,484, and the average percentage of price reduction amount to list price rose to 7.6 percent in November, a 1.7 percent change from October

* In 17 of the 26 markets surveyed, listings have experienced an average of two price reductions

* In 11 markets, more than half of homes for sale in November included at least one price reduction: Jacksonville, Phoenix, Minneapolis/St. Paul, Chicago, Baltimore, Orlando, Seattle, Orange County, Boston, Philadelphia, and Las Vegas.

* Markets with the largest median price reduction in absolute dollars were:

+---------------------------------+------------------------+
|             Market              | Median Price Reduction |
+---------------------------------+------------------------+
|          San Francisco          |        $35,050         |
+---------------------------------+------------------------+
|          Orange County          |        $32,450         |
+---------------------------------+------------------------+
|            San Diego            |        $30,000         |
+---------------------------------+------------------------+
| Miami/Ft. Lauderdale/Palm Beach |        $25,100         |
+---------------------------------+------------------------+
|             Seattle             |        $25,000         |
+---------------------------------+------------------------+

About the Report ZipRealty compiled real estate listing and price reduction data from the MLS in 26 of the 35 major U.S. metropolitan areas where the real estate brokerage operates. The data cited within this report was pulled on December 1, 2010.

This report is intended to convey information on the general market conditions where ZipRealty operates, not on ZipRealty's operating results. ZipRealty's operating results may be materially different from the general trends shown in this report. Please do not draw any conclusions about ZipRealty's operating results based on the information contained in this report but, instead, refer to ZipRealty's earnings releases and periodic reports as they are made public.

About ZipRealty, Inc. ZipRealty is a leading full-service residential real estate brokerage that uses an innovative combination of a comprehensive online presence, robust proprietary technology and knowledgeable local agents to offer its clients fast, responsive and transparent service. The Company's award-winning, user-friendly website gives its users access to comprehensive local Multiple Listing Services home listings data, as well as other relevant market and neighborhood information and tools. The Company's proprietary technology, including its agent platform and customer relationship tools, helps it to enhance customer service while increasing agent efficiency and reducing costs, allowing the Company to pass on significant savings to consumers as permitted by law. Founded in 1999, the company operates in 35 major markets in 22 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800- CALL- ZIP.

Corrected December 10, 2010 at 3:30 pm PST.

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Source: Zip Realty via Thomson Reuters ONE

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