SOURCE: ZipRealty

ZipRealty

September 03, 2010 15:27 ET

Nearly Half of All Listed Homes in August Had Price Cut, Up 3 Percent From July

Sellers Discounted Their Asking Prices by 7 percent in August, With a Median Reduction of More Than $19,000

EMERYVILLE, CA--(Marketwire - September 3, 2010) - The number of price-reduced homes on the market increased 3.26 percent in August compared to July, according to the latest data from national brokerage ZipRealty (www.ziprealty.com) (NASDAQ: ZIPR). ZipRealty's monthly review of MLS-listed properties in 26 major markets found that 47 percent of "for sale" homes had at least one price reduction and the average seller actually slashed their list price twice to attract buyers.

The growing number of price-reduced homes outpaced newly listed homes in August, which increased less than one percent, with sellers nationally reducing their asking price by an average of $19,092.

"It appears that homebuyers are taking their time as they don't feel a sense of urgency to make an offer, unless the price is right, and sellers are having to aggressively cut their prices to stay competitive in this market," said Leslie Tyler, vice president of marketing for ZipRealty. "We typically find if a buyer hasn't walked through the door in 30 to 45 days, a seller needs to lower their asking price. If a home hasn't had an offer in six months, it's time to rethink the sale."

Highlights of ZipRealty's August survey include:

  • More than 47 percent of listed homes included at least one price reduction -- an increase of 2.81 percent compared to July
  • The median list price dropped 2.1 percent to $249,631 across the 26 markets surveyed
  • The average price reduction is now 7.1 percent of the list price
  • In seven major markets, more than 50 percent of sellers included a price reduction -- Jacksonville, Phoenix, Minneapolis, Orlando, Tucson, Chicago and Austin
  • Jacksonville, Fla., continues to serve as the market with the highest percentage of price-reduced homes, with 55 percent of all listings in August including at least one price reduction
  • Denver had the lowest percentage of price-reduced homes with 33.2 percent, followed by Los Angeles (41.4 percent) and the Miami/Ft. Lauderdale/Palm Beach market (42.3 percent)
  • Homes listed for sale in Miami/Ft. Lauderdale/Palm Beach were discounted 12.32 percent from the original list price, the highest percentage nationally, followed by Orlando (11.49 percent) and Jacksonville (11.24 percent)
  • Buyers in Houston and Dallas found the smallest price reductions, with a median price cut of only $10,000 in each of the two markets
  • Markets with the largest median price reduction in absolute dollars were:
Market Median Price Reduction
San Francisco $35,000
Orange County, Calif. $35,000
San Diego $30,000
Los Angeles $26,000
Miami/Ft. Lauderdale/Palm Beach $26,000

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 Sept. 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.

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