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St. Louis Real Estate Search

 

Sellers reduce home prices as they struggle to compete with distressed home sales

Price Reductions Surpass Highest Historical Levels in 15 U.S. Cities, Remain Flat Nationwide

According to a report released this morning by Trulia.com, 27 percent of the homes for sale in November have experienced at least one price cut. Following four-consecutive months of increases, this rate has now flattened out nationwide. However, locally the story is different as 15 major cities hit an all-time high for price reductions in November.

Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand –– on that score, buyers clearly have the advantage this holiday season,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”

The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.

 Cities with Record High Percentage in Price Reductions      

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                                            % of Price Reductions in
        Rank          City          State         November 2010
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         1    Minneapolis            MN                46%
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         2    Phoenix                AZ                40%
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         3    Mesa                   AZ                39%
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         4    Baltimore              MD                39%
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         5    Chicago                IL                35%
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         6    Colorado Springs       CO                34%
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         7    Arlington              TX                33%
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         8    Cleveland              OH                33%
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         9    Fresno                 CA                32%
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         10   Long Beach             CA                32%
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         11   Philadelphia           PA                31%
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         12   San Diego              CA                29%
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         13   Sacramento             CA                28%
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         14   Fort Worth             TX                28%
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         15   Denver                 CO                25%
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