SOURCE: Trulia

Trulia

September 11, 2009 06:00 ET

Home Price Reduction Levels Rise for Fourth Straight Month According to Trulia's September Price Reduction Report

Sellers Across the Country Not Adjusting Expectations to the Reality of Today's Real Estate Market

SAN FRANCISCO, CA--(Marketwire - September 11, 2009) - Trulia, Inc. (www.trulia.com), the best place to start your real estate search, today announced that 26 percent of homes currently on the market in the United States as of September 1, 2009 have experienced at least one price cut. Price reduction levels have increased for the fourth straight month and have seen a 10 percent overall increase compared to June of this year. During the summer months of June to September, the total amount slashed from home prices has increased by more than $1.1 billion from $27.4 billion to $28.5 billion. The average discount for price-reduced homes remains at ten percent off of the original listing price.

Jacksonville experienced the highest level of price reductions for the fourth straight month with 37 percent of current listings seeing at least one round of discounts. Additionally, several cities continue to experience high levels of price reductions with Albuquerque, Indianapolis, Milwaukee Minneapolis, Portland and Raleigh all earning spots in the top ten for the second straight month.

"The steady rise in price reductions is a signal that sellers are still trying to adjust to the ever changing market conditions," said Pete Flint, Trulia co-founder and CEO. "We expect the $8,000 federal tax incentive to extend the peak home purchasing season beyond the summer months, continuing to drive competition amongst sellers and ultimately leading to more price reductions, giving consumers a great opportunity to find the home of their dreams."

Several cities have seen four consecutive months where the percent of homes that have seen a price reduction has increased month-over-month, underscoring that sellers across the country might not be fully adjusting their home value expectations to the current real estate market:

City               June    July   August   September
----------------  ------  ------  ------  -----------
Kansas City         20%     23%    25%        28%
----------------  ------  ------  ------  -----------
Colorado Springs    22%     24%    28%        30%
----------------  ------  ------  ------  -----------
Omaha               23%     26%    27%        28%
----------------  ------  ------  ------  -----------
Atlanta             25%     26%    28%        29%
----------------  ------  ------  ------  -----------
Indianapolis        28%     30%    32%        34%
----------------  ------  ------  ------  -----------
Memphis             29%     30%    32%        35%
----------------  ------  ------  ------  -----------
Milwaukee           29%     33%    34%        36%
----------------  ------  ------  ------  -----------
Raleigh             29%     31%    32%        34%
----------------  ------  ------  ------  -----------

Fourteen of the largest 50 cities are seeing reduction rates that are significantly above the national average of 26 percent:

Jacksonville       FL         37%
Milwaukee          WI         36%
Portland           OR         35%
Memphis            TN         35%
Baltimore          MD         34%
Indianapolis       IN         34%
Minneapolis        MN         34%
Raleigh            NC         34%
Albuquerque        NM         33%
Columbus           OH         33%
Chicago            IL         33%
Tucson             AZ         33%
Boston             MA         33%
Seattle            WA         33%

Luxury Market Getting Hit Hard

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 barely two percent of all current listings on Trulia, but are responsible for 25 percent of the $28.5 billion in home price reductions.

September Price Reductions - Top 50 U.S. Cities

                                     Percent of
                                      Listings    Average    Total
                                     with Price  Reduction   Amount of
   Rank        City           State  Reductions     (%)      Reductions
----------   ---------------- ------ -----------  -------  ----------------
        1    Jacksonville      FL         37%      11%      $110,127,423
----------   ---------------- ------ -----------  -------  ----------------
        2    Milwaukee         WI         36%       8%       $20,423,004
----------   ---------------- ------ -----------  -------  ----------------
        3    Portland          OR         35%       9%       $60,322,535
----------   ---------------- ------ -----------  -------  ----------------
        4    Memphis           TN         35%       9%       $26,055,526
----------   ---------------- ------ -----------  -------  ----------------
        5    Baltimore         MD         34%      11%       $43,037,982
----------   ---------------- ------ -----------  -------  ----------------
        6    Indianapolis      IN         34%       8%       $36,126,552
----------   ---------------- ------ -----------  -------  ----------------
        7    Minneapolis       MN         34%       9%       $24,742,480
----------   ---------------- ------ -----------  -------  ----------------
        8    Raleigh           NC         34%       7%       $47,154,736
----------   ---------------- ------ -----------  -------  ----------------
        9    Albuquerque       NM         33%       7%       $26,148,130
----------   ---------------- ------ -----------  -------  ----------------
       10    Columbus          OH         33%       9%       $18,375,300
----------   ---------------- ------ -----------  -------  ----------------
       11    Chicago           IL         33%       9%      $246,153,312
----------   ---------------- ------ -----------  -------  ----------------
       12    Tucson            AZ         33%      11%       $72,521,294
----------   ---------------- ------ -----------  -------  ----------------
       13    Boston            MA         33%       8%       $46,192,676
----------   ---------------- ------ -----------  -------  ----------------
       14    Seattle           WA         33%       8%       $66,243,015
----------   ---------------- ------ -----------  -------  ----------------
       15    Charlotte         NC         31%       9%      $102,786,908
----------   ---------------- ------ -----------  -------  ----------------
       16    Austin            TX         31%       8%      $116,765,000
----------   ---------------- ------ -----------  -------  ----------------
       17    Colorado Springs  CO         30%       7%       $32,073,580
----------   ---------------- ------ -----------  -------  ----------------
       18    Honolulu          HI         30%       9%       $46,078,115
----------   ---------------- ------ -----------  -------  ----------------
       19    Atlanta           GA         29%      11%      $190,829,760
----------   ---------------- ------ -----------  -------  ----------------
       20    New York          NY         28%      13%      $894,065,642
----------   ---------------- ------ -----------  -------  ----------------
       21    San Francisco     CA         28%      10%       $65,617,180
----------   ---------------- ------ -----------  -------  ----------------
       22    Omaha             NE         28%       6%       $12,733,344
----------   ---------------- ------ -----------  -------  ----------------
       23    Kansas City       MO         28%       8%       $23,262,720
----------   ---------------- ------ -----------  -------  ----------------
       24    Miami             FL         27%      15%      $225,970,635
----------   ---------------- ------ -----------  -------  ----------------
       25    Washington        DC         26%      10%       $61,233,215
----------   ---------------- ------ -----------  -------  ----------------
       26    Mesa              AZ         26%      13%       $24,919,996
----------   ---------------- ------ -----------  -------  ----------------
       27    Philadelphia      PA         26%       9%       $52,092,370
----------   ---------------- ------ -----------  -------  ----------------
       28    Los Angeles       CA         26%      12%      $255,057,208
----------   ---------------- ------ -----------  -------  ----------------
       29    Tulsa             OK         26%       6%       $12,123,162
----------   ---------------- ------ -----------  -------  ----------------
       30    Phoenix           AZ         26%      13%       $99,680,306
----------   ---------------- ------ -----------  -------  ----------------
       31    Sacramento        CA         26%      10%       $17,769,621
----------   ---------------- ------ -----------  -------  ----------------
       32    San Jose          CA         26%       8%       $29,321,270
----------   ---------------- ------ -----------  -------  ----------------
       33    Oklahoma City     OK         25%       6%        $9,583,616
----------   ---------------- ------ -----------  -------  ----------------
       34    Cleveland         OH         25%      12%       $10,614,086
----------   ---------------- ------ -----------  -------  ----------------
       35    Long Beach        CA         25%      11%       $29,173,960
----------   ---------------- ------ -----------  -------  ----------------
       36    Virginia Beach    VA         25%       8%       $31,416,968
----------   ---------------- ------ -----------  -------  ----------------
       37    Nashville         TN         23%       7%       $26,319,460
----------   ---------------- ------ -----------  -------  ----------------
       38    Dallas            TX         23%       8%       $81,458,720
----------   ---------------- ------ -----------  -------  ----------------
       39    Arlington         TX         23%       6%        $5,757,896
----------   ---------------- ------ -----------  -------  ----------------
       40    Oakland           CA         22%      10%       $10,212,718
----------   ---------------- ------ -----------  -------  ----------------
       41    Louisville        KY         22%       6%        $8,675,643
----------   ---------------- ------ -----------  -------  ----------------
       42    El Paso           TX         21%       7%       $14,449,218
----------   ---------------- ------ -----------  -------  ----------------
       43    Las Vegas         NV         21%      16%      $164,757,120
----------   ---------------- ------ -----------  -------  ----------------
       44    Denver            CO         21%      10%       $58,441,958
----------   ---------------- ------ -----------  -------  ----------------
       45    San Diego         CA         20%      10%       $73,114,406
----------   ---------------- ------ -----------  -------  ----------------
       46    Fresno            CA         20%      10%        $7,564,908
----------   ---------------- ------ -----------  -------  ----------------
       47    San Antonio       TX         19%       7%       $41,272,294
----------   ---------------- ------ -----------  -------  ----------------
       48    Detroit           MI         19%      23%       $10,217,852
----------   ---------------- ------ -----------  -------  ----------------
       49    Fort Worth        TX         18%       8%       $17,311,698
----------   ---------------- ------ -----------  -------  ----------------
       50    Houston           TX         10%       7%       $44,480,784
----------   ---------------- ------ -----------  -------  ----------------

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 September 1, 2009 and tracks all price reductions from September 1, 2008 to September 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 2009 Webby Award for real estate. For more information, visit http://www.trulia.com/.

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