SOURCE: ZipRealty

ZipRealty

October 12, 2009 15:18 ET

Nearly Half of All Homes for Sale Have Reduced Prices According to ZipRealty Study

Percentage of Price Reduced Homes Available for Sale Down From Last Year, but Still Substantial

EMERYVILLE, CA--(Marketwire - October 12, 2009) - While many sellers continue to cut their asking prices, fewer are doing so, according to recent data compiled by ZipRealty (NASDAQ: ZIPR) (www.ZipRealty.com), national real estate brokerage, which may lead to an upward trend in home prices. According to MLS data, more than 44 percent of home listings in 28 major markets tracked by ZipRealty in September included at least one price reduction, down 2.8 percent from September 2008.

Homes currently on the market with reduced prices have had their prices cut an average of twice, according to analysis released today by ZipRealty based on MLS data in the 28 markets tracked by Zip.

Other highlights of the brokerage's monthly survey of price reduction data, compiled from local Multiple Listing Service (MLS) data in the 28 markets tracked, include:

--  Home owners slashed listing prices by an average of $25,362 in
    September, similar to the average reduction of $25,155 in August
--  Las Vegas homeowners reduced list prices by the largest percentage at
    20 percent (a 1.7 point decline compared to August), while homeowners in
    Raleigh-Durham reduced prices by the smallest percentage at 4.6 percent (a
    0.27 point incline compared to August)
--  Of the markets studied, those with the highest percentage of price-
    reduced homes are Orlando (50.4 percent), Jacksonville (50.2 percent) and
    Chicago (49.7 percent)
--  Markets with the lowest percentage of price-reduced homes are Denver
    (30.3 percent), Los Angeles (34.7 percent), San Francisco (37.1 percent)
    and Sacramento (37.2 percent)
--  Markets where sellers have cut the most in absolute dollars are:
    

           Market           Median Price Reduction

    Orange County, Calif.          $55,000
        San Francisco              $54,000
         Los Angeles               $44,694
    Miami/Ft. Lauderdale           $41,000
Naples, Fla. (Southwest Fla.)      $40,000

--  The median list price decreased to $263,700 across all 28 markets,
    down slightly (2.7 percent) compared to August
--  Orange County had the highest median list price at $647,000.
    Jacksonville, Fla. has the lowest median list price at $174,900
    

For access to all of the data and the full report, click here: http://ziprealty.typepad.com/marketconditions/2009/10/ziprealty-price-reductions-by-metro-september-2009.html

About the Report

ZipRealty compiled real estate listing and price reduction data from the Multiple Listing Services in 28 of the 36 major U.S. metropolitan areas where the real estate brokerage operates. The data cited within this report was pulled at the end of September 2009.

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 full-service residential real estate brokerage firm. The Company utilizes its user-friendly Web site and employee real estate agents to provide home buyers and sellers with high-quality service and value. ZipRealty's Web site provides users with access to comprehensive local Multiple Listing Services' home listings data, as well as other relevant market and neighborhood information. The Company's proprietary business management system and technology platform help to reduce costs, allowing the Company to pass on significant savings to consumers. Founded in 1999, the company operates in 36 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.

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