Nearly Half of Sellers Cut Prices

Aug. 6, 2010 at 10:39 AM
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The number of price-reduced homes on the market increased 5.3 percent in July as compared to June, according to a monthly review of MLS-listed properties within 26 of the country's largest housing markets conducted by the national online real estate brokerage ZipRealty.

Although the number of price-reduced homes increased in July, the median price reduction across the 4500 cities and communities in 26 markets surveyed slightly declined from June, to $18,949.

"Homebuyers this summer have been on the sidelines, waiting to find deals and bargains; so we're seeing more sellers slashing their list prices to entice these home shoppers to make an offer," said Leslie Tyler, vice president of marketing for ZipRealty.

More than 45 percent of "for sale" homes in July included at least one price reduction -- an increase of 2.67 percent compared to June. "For sale" prices dropped 2.04 percent -- down to a median of $254,987 across the 26 markets surveyed.

In six major metros, more than one out of two home sellers reduced their list price -- Jacksonville, Phoenix, Minneapolis, Orlando, Austin and Chicago. The metro with the highest percentage of price-reduced "for sale" homes continues to be Jacksonville, Fla., where 54 percent of all July listings had at least one price reduction. Denver had the lowest percentage of price-reduced homes on the market in July with 32.5 percent.

Sellers in California housing markets continue to hold steady with prices, compared to other parts of the country; Los Angeles County (39.4 percent) and the San Francisco Bay Area (40.9 percent) had the second and third lowest percentage of reduced listings out of all markets surveyed in July. Buyers in the San Francisco Bay Area again enjoyed the biggest home price discount in absolute dollars, with a median price reduction of $38,000 in July.

Buyers in Houston, Dallas and Raleigh-Durham found the smallest price reductions, with a median price cut of only $10,000 in each of the three markets.

ZipRealty compiled real estate listing and price reduction data from the MLS in 26 of the 35 major U.S. metropolitan areas where the real estate brokerage operates. The data cited within this report was pulled on August 2, 2010.

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