SOURCE: Zip Realty

November 24, 2010 05:22 ET

Price-Reduced Homes See a Sharp Rise in October Compared to Prior Year, According to ZipRealty's Monthly Price Reduction Index

EMERYVILLE, CA--(Marketwire - November 24, 2010) -

Upsurge Shows Price-Reduced Listings Increase 25 Percent from 2009

The number of price-reduced homes on the market this October rose sharply compared to the same time last year, a 25 percent increase 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 48.4 percent of homes on the market in October, an increase of 10.6 percent over last year.

"This increase may be an indication that homebuyers are still sitting on the fence to make a home purchase, and don't feel a sense of urgency to make an offer unless the price is right," said John Oldham, Director of Marketing for ZipRealty. "Many Sellers are aggressively cutting their prices to stay competitive in this tough housing market, and even reconsidering whether it is the right time to sell when they don't receive an offer for an extended period of time."

October saw both less inventory and fewer discounted homes for sale overall than September with the number of price-reduced homes on the market down 2.2 percent. The report also found that sellers had reduced their list prices an average of twice with a median reduction of $19,423.

"We are entering the traditionally slower part of the home selling season, and we saw inventory fall in October," Oldham added.

Highlights of ZipRealty's October index include:

--  Price-reduced homes made up almost half (48.35 percent) the homes on
    the market in October - an increase of 1 percent compared to September
--  Overall inventory experienced a dip in October with a 3.3 percent drop
    from September, and the number of price-reduced homes fell 2.2 percent
--  The average percentage of price reduction amount to list price
    increased to nearly 7.5 percent from September, and the median list
    price dropped by 1.6 percent to $241,309
--  In 12 major markets, more than half of homes on the market in October
    included at least one price reduction, up from 10 markets in September.
    Those markets are Phoenix, Jacksonville, Minneapolis, Orlando, Chicago,
    Tucson, Baltimore, Orange County, Boston, Seattle, Austin, and
    Philadelphia
--  Five major markets averaged two price reductions and a median reduction
    amount of over $20,000. Those markets are Seattle, Washington, D.C.,
    Miami/Ft. Lauderdale/Palm Beach, Orange County, and Boston
--  Phoenix, Ariz., had the highest percentage of price-reduced homes out
    of the 26 markets surveyed with more than 56 percent of Phoenix
    listings in October including a price reduction. Denver had the lowest
    percentage of price-reduced homes in October with only 34 percent of
    listings including a reduction
--  Homes listed for sale in Miami/Ft. Lauderdale/Palm Beach were
    discounted by the largest percentage of original list price nationwide
    (12.1 percent), followed by Jacksonville  (11.7 percent),Orlando
    (11.8 percent) and Baltimore (10.3 percent)
--  Markets with the largest median price reduction in absolute dollars
    were:


+---------------------------------+------------------------+
|             Market              | Median Price Reduction |
+---------------------------------+------------------------+
|          San Francisco          |        $35,650         |
+---------------------------------+------------------------+
|      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.

[HUG#1465012]

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Zip Realty via Thomson Reuters ONE

Contact Information