SOURCE: ZipRealty

ZipRealty

October 06, 2010 14:13 ET

Number of Price-Reduced Homes on Market Rose 24 Percent in September From 2009, According to ZipRealty's Monthly Price Reduction Index

Slow Summer Selling Season Led to 2.1 Percent Increase in Price-Reduced Listings From August to September

EMERYVILLE, CA--(Marketwire - October 6, 2010) -  The number of price-reduced homes on the market this September increased dramatically compared to the same time last year, rising 24.2 percent according to a report issued by national real estate brokerage ZipRealty (www.ziprealty.com) (NASDAQ: ZIPR).

According to the Price Reduction Index, ZipRealty's monthly review of MLS-listed properties in 26 markets surveyed by the brokerage, list prices were cut at least once for 47.8 percent of homes on the market in September, an increase of nearly 10 percent over last year.

September also saw more discounted homes for sale than August, with the number of price-reduced homes on the market up 2.1 according to the report. The report also found that sellers had reduced their list prices an average of twice with a median reduction of $19,165.

"Sellers appear to be cutting their prices again," said Leslie Tyler, Vice President of Marketing for ZipRealty. "Last spring the tax credit helped to bring buyers into the market, and we didn't see sellers reducing prices by as much. But now sellers seem to be cutting prices more aggressively going into the typically slower fall and winter seasons."

Highlights of ZipRealty's September index include:

  • Nearly half (47.8 percent) of listed homes in September included at least one price reduction -- an increase of 1.5 percent compared to August
  • The number of price-reduced homes rose quicker than inventory, with the number of price-reduced homes rising 2.1 percent compared to a .6 percent increase in overall inventory in September as compared to August
  • The median list price dropped by 1.75 percent from August to $245,265, and the average percentage of price reduction amount to list price rose to 7.25 percent in September
  • In 10 major markets, more than half of homes on the market in September included at least one price reduction, up from seven markets in August. Those markets are Jacksonville, Phoenix, Minneapolis/St. Paul, Orlando, Chicago, Tucson, Baltimore, Austin, Orange County and Seattle
  • Jacksonville, Fla., continues to have the highest percentage of price-reduced homes out of the 26 markets surveyed. More than 55 percent of Jacksonville listings in September included at least one price reduction
  • Denver had the lowest percentage of price-reduced homes in September, with 34.4 percent of listings including at least one reduction
  • Homes listed for sale in Miami/Ft. Lauderdale/Palm Beach were discounted by the largest percentage of original list price nationwide (23 percent), followed by Orlando (11.7 percent) and Jacksonville (11.8 percent)
  • 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
Miami/Ft. Lauderdale/Palm Beach $26,000
Washington, D.C. $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 October 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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