City Sellers cut 9% in July

Posted on August 3rd, 2009 in All Articles.

Chicago Market Sellers are responding to the reality of the market – by dropping prices 9% in July alone according to Trulia. This is the 7th largest drop in the country for Metro areas. Good news is that this is above the Countrywide average is 10.4% – bad news is that it is taking aggressive action to Sell in this market.

Here’s some interesting trulia stats.

By the waydont knock trulia too much- sure they are genetic and not usefulin really hitting the value on the head when comping your property but they are a mcdonalds version of calling trends.

My mls stats vary widely n’hood to n’hood on value and list drops so when we talk trends and I can be general I find trulia and zilliw useful – especially if you don’t have to isolate certain types if property ( ie condo versus multi units).

Here you go

TRULIA PRICE REDUCTION REPORT: LISTING PRICE CUTS ON THE RISE NATIONALLY; STABILIZATION SEEN IN SOME OF THE HARDEST HIT MARKETS
$27.1 billion in Price Reductions for All Homes on the Market as of July 1, 2009
Hard Hit Cities Las Vegas and Los Angeles on the upswing Versus One Month Ago
SAN FRANCISCO, July 10, 2009 – Trulia, Inc. (www.trulia.com), the best place to start your real estate search, today announced that 24.6 percent of current homes on the market in the United States as of July 1, 2009 have experienced at least one price cut, totaling $27.1 billion in reductions. The average price-reduced home has seen a listing price reduction of 10.4 percent, a moderate decrease from 10.6 percent the month prior. Some of the hardest hit areas have seen significant decreases in terms of the number of homes with price reductions, indicating that stabilization is beginning to occur in these areas.

Several major metros are beginning to see signs of recovery with significant decreases in the number of price-reduced properties for sale compared to last month’s report. Areas that have experienced the biggest decreases in home price reductions include Las Vegas, Los Angeles, Dallas, Washington D.C. and Baltimore. Two of the hardest hit markets during the past few years, Las Vegas and Los Angeles, turned in the biggest improvement of all major markets in the U.S. with a 33 percent and 25 percent reduction respectively in the number of homes being reduced in price compared to one month ago. While the overall number of price reductions has been drastically reduced, the average percent off of the asking price in Las Vegas and Los Angeles continues to be higher than the national average. The average reduction in Las Vegas is 16 percent and the average reduction in Los Angeles is 12 percent.

“All real estate is local and we’re seeing glimmers of hope as price stabilization occurs in major cities across the nation, including some of the earliest hit cities that have experienced huge declines in the past few years,” said Pete Flint, Trulia co-founder and CEO. “On the flip side, perhaps sellers are pricing their homes more rationally to get them off the market as soon as possible.”

The national reduction average for a property is 10.4 percent, but in markets like Detroit, Miami and NYC sellers more dramatically overpriced their homes, and are making more drastic cuts. In Detroit, sellers dropped their price an average of 21 percent, in Miami sellers slashed 15 percent off their original asking price and in New York City sellers cut 13 percent off their price.

Compared to the previous month, four new cities entered the top ten major for markets that have greatest percentage of listings with price reductions – Milwaukee, Chicago, New York City, and Raleigh (see below for top 50 cities by percentage of home price reductions).

Luxury Market Getting Hit Hard

25.8 percent of homes with a selling price greater than $1 million are seeing price reductions compared to 24.5 percent of homes on the market for less than $1 million. While the percentage of homes seeing discounts are almost identical, discounts on luxury homes are significantly more with 13 percent being slashed off the original price compared to only 9 percent of homes under the $1 million dollar price tag.

July Price Reductions – Top 50 U.S. Cities

Rank

City

State

Percent of Listings with Price Reductions

Average Reduction (%)

Total Amount of Reductions

1

Jacksonville

FL

39%

12%

$ 119,520,476

2

Boston

MA

35%

8%

$ 54,084,186

3

Minneapolis

MN

33%

8%

$ 24,226,528

4

Milwaukee

WI

33%

8%

$ 17,349,888

5

Honolulu

HI

33%

10%

$ 56,889,546

6

Tucson

AZ

31%

10%

$ 67,675,233

7

Chicago

IL

31%

9%

$ 229,444,054

8

New York

NY

31%

13%

$ 1,035,023,661

9

Austin

TX

31%

8%

$ 112,001,484

10

Raleigh

NC

31%

7%

$ 41,252,954

11

Portland

OR

31%

9%

$ 50,331,424

12

Columbus

OH

31%

8%

$ 16,017,660

13

Memphis

TN

30%

9%

— Post From The Field