Survey finds more US home sellers reducing prices
One in every homes for sale in the US from June 1 to August 1 had their prices reduced at least once since being placed on the market, this according to the latest survey conducted by Trulia.com.
The Trulia.com survey showed that 24.4 percent of US homes for sale had their prices reduced in July, a 23.6 percent increase from the previous month.
According to CNN, properties sold through foreclosures and short sales are mostly sold at reduced price of at least 15% in contrast with traditional sales.
The average price reduction was 10 percent from the original price or $40,173 average discount, the survey revealed.
The survey added that in the national scale, close to $28 billion has been reduced for the homes for sale on August 1. This number has soared by $700 million during the previous month, the survey showed.
The survey also showed that there has been a 25 percent price reduction on luxury homes or those homes priced $2 million or more.
The survey data further showed that non-luxury homes, those for sale less than $2 million, has seen a 25 percent price reduction from its original asking price.
Pete Flint, Trulia co-founder and CEO, told Reuters that one of the factors for the price reduction was competition, this as more inventory enters the market.
As a result of this price reduction, more and more Americans are buying homes, Flint said.
Flint added that homes with prices reduced are the ones which are selling the prevailing market.
The co-founder and CEO of Trulia told Reuters that he expects price reductions on luxury homes as inventory levels of luxury homes grow.
Trulia reported that cities which showed a significant increase in the reduction of prices of homes for sale include Fresno, California and Colorado Springs, Colorado for the period of June 1 to August 1.
Trulia added that the cities of Dallas, Texas and Las Vegas, Nevada showed a decline in the percentage of listings with price reductions for the same two-month period.
I found the survey very interesting. Home sellers are reducing prices! Very interesting, will share with marketing team at our next meeting.
With the downturn in the real estate market you can purchase town homes or condos here in Florida for about 50% of what they sold for in 2005- 06.
Yes there have been condos here that have sold for 150 at the height of the market that you could realistically pick up for 45k. Having grown up in Florida I am well aware of how rough the market is there. I think we have passed the bottom with the way offers are coming in on properties. Have you seen the same thing there?
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