At Least A Quarter Of Home Sellers Have Cut Prices

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Twenty-five percent of people with homes on the market as of August 1 have cut the prices of their homes at least once according to real estate research firm Trulia.

The trend has lasted four months. According to Trulia, “The total dollar amount slashed from home prices in America’s 50 largest cities was $30.1 billion, and the average discount on price-reduced homes continued to hold at 10 percent off of the original listing price.”

Price cuts continued to be high in Nevada and the Southwest. The news in one in a long line of confirming statistics that show prices are being dropped on homes and inventory is rising. Part of this is undoubtedly due to unemployment. Part can be blamed on the expiration of government tax cuts and the failure of the HAMP foreclosure prevention program

Another significant cause is the 11 million homes with underwater mortgages. The Trulia data show that these numbers will grow as price cuts put more mortgages out of the money, forcing those who want to sell homes to make payments to their banks to close a transaction. Housing, many analysts and federal authorities believed, was to start to improve in the second half of this year. Not likely.

Douglas A. McIntyre

The following U.S. cities experienced the biggest increases in price reductions from July 1, 2010 to August 1, 2010:

City State July 2010 August 2010 Percentage Change
Las Vegas NV 12% 18% 56%
Fresno CA 19% 24% 28%
El Paso TX 18% 21% 19%
San Diego CA 20% 23% 15%
New York NY 17% 20% 15%
San Jose CA 16% 18% 13%
Colorado Springs CO 27% 30% 12%
Los Angeles CA 23% 25% 12%
Albuquerque NM 31% 34% 11%

August 2010 Price Reductions – Top 50 U.S. cities based on population

Rank City State Percent of Listings with Price Reductions Average Reduction (%) Total Amount of Reductions
1 Minneapolis MN 42% 9% $                33,819,493
2 Milwaukee WI 39% 9% $                25,062,765
3 Dallas TX 36% 9% $              156,394,606
4 Boston MA 35% 7% $                47,060,800
5 Memphis TN 35% 9% $                28,206,058
6 Kansas City MO 35% 9% $                35,783,696
7 Albuquerque NM 34% 8% $                39,954,480
8 Phoenix AZ 34% 13% $              109,770,615
9 Mesa AZ 33% 11% $                28,348,320
10 Columbus OH 33% 9% $                23,732,304
11 Jacksonville FL 32% 12% $              100,430,400
12 Arlington TX 32% 6% $                 9,991,944
13 Baltimore MD 32% 11% $                41,873,380
14 Omaha NE 32% 7% $                14,033,656
15 Tucson AZ 32% 11% $                65,678,793
16 Portland OR 32% 9% $                48,174,000
17 Atlanta GA 31% 10% $              186,695,352
18 Virginia Beach VA 31% 8% $               42,106,115
19 Chicago IL 31% 9% $              226,322,091
20 Indianapolis IN 30% 8% $                36,242,235
21 Cleveland OH 30% 13% $                14,429,270
22 Seattle WA 30% 8% $                72,773,546
23 Nashville TN 30% 8% $                38,058,104
24 Colorado Springs CO 30% 7% $                44,417,542
25 Philadelphia PA 30% 9% $                67,681,614
26 Raleigh NC 29% 7% $                35,926,488
27 Austin TX 28% 7% $                90,510,222
28 Long Beach CA 28% 9% $                25,491,051
29 Louisville KY 28% 7% $                16,671,340
30 Houston TX 28% 9% $              164,122,608
31 Tulsa OK 28% 7% $                18,214,328
32 Fort Worth TX 26% 8% $                39,857,393
33 Charlotte NC 26% 9% $                86,347,360
34 Los Angeles CA 25% 11% $              248,665,167
35 Oklahoma City OK 25% 8% $                13,057,152
36 Washington DC 25% 9% $                56,245,248
37 San Antonio TX 25% 7% $                68,895,015
38 San Francisco CA 24% 9% $                73,594,112
39 Fresno CA 24% 11% $                11,712,696
40 Honolulu HI 24% 8% $                37,236,150
41 Miami FL 23% 14% $              173,200,000
42 San Diego CA 23% 8% $                92,447,080
43 Sacramento CA 21% 9% $                16,045,404
44 El Paso TX 21% 7% $                16,245,365
45 Denver CO 21% 8% $                47,192,002
46 New York NY 20% 10% $              458,233,952
47 Las Vegas NV 18% 13% $                94,540,446
48 Detroit MI 18% 26% $                10,650,914
49 San Jose CA 18% 8% $                30,417,552
50 Oakland CA 17% 10% $                10,289,096
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