[Trulia] Price Reduction Report – September 2010
Posted by Jonathan J. Miller -Thursday, September 16, 2010, 10:13 AM
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Trulia released its Price Reduction Report for September 2010.
…price reductions for home listings currently on the market in the U.S. have increased for the third consecutive month to 26 percent and account for a total reduction of more than $29 billion nationwide. These figures only tell part of the story, however, as modest signs of recovery appear to be emerging across the nation.
“On the surface, the latest price reduction data carries with it conflicting messages,” said Pete Flint, co-founder and CEO, Trulia. “Nationwide, sellers continue to slash prices and this is a worrisome trend. However, we’re seeing gradual improvement in many U.S. cities – several for consecutive months. What this shows us is that while we’re in for a long climb to bring stability back to the housing market and while it’s going to take time, that climb appears to at least be underway in some parts of the country.”
The number of homes with price reduction has continued to rise March 2010, the month before the expiration of the tax credit. The 26% figure is now on par with the fall of 2009 and in my view suggests that the housing market health has gone largely unchanged after removing the false positives generated by the tax credit. The tax credit artificially stimulated demand at the beginning of 2010 and now we are returning to a more organic market, which by the way, remains relatively weak.
Top 5 cities with highest number of price reductions
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Top 5 cities with lowest number of price reductions
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Trulia Home Price Reduction Report [Trulia.com]
