Dennis Norman
According to a report released by Trulia.com, 24 percent of the homes for sale as of July 1, 2010 have experienced at least one price cut. This is a 9 percent increase from the prior month. 
The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.
Western U.S. Leads with Price Reduction Increases
For the first six months of this year, cities in the Western U.S. saw a reduction in their price declines, however for this month those same cities have experienced some of the largest surges in price reductions in the U.S. when compared to the prior month. Oakland saw a 38 percent increase in price reductions, San Diego 25 percent, Honolulu (wow, way west) 21 percent and Las Vegas reductions increased by 20 percent.
Most of the largest U.S.cities saw Price Reduction Increases
Twenty two of the top 50 cities across the U.S. experienced price reduction levels at 30 percent or more, compared to just 10 cities in the previous month. Minneapolis leads the way with 40 percent of its home listings experiencing at least one price cut. This is the third straight month that Minneapolis has held the top spot and no other city has reached the 40 percent mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at nine percent, the city’s total dollar amount slashed from home prices was $30.1 million.
Luxury Market Still Hardest Hit
Luxury homes (those listed at $2 million and above) continue to be hit the hardest by price reductions with the average discount being 14 percent off list price.
To see Trulia’s report showing price reductions for the 50-largest cities in the U.S. as of July 1, 2010 click here.
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