Altadena Real Estate

Some Very Positive News For Home Sellers

Trulia, a real estate search site, announced today that home-price reduction levels have reached a new low.

Of the site’s single-family and condominium listings, 21% that went on the market on or after Jan. 1 have experienced at least one price cut, the lowest share since the site started the survey in April 2009. The previous low was in December, at 22%. This month’s survey marks the second month of declines in price-reduction levels. The data do not include foreclosures.

“Historically low interest rates currently available and tax credit incentives are the ultimate price reductions for homebuyers. As rates rise throughout the course of the year, buyers will need to adjust their purchase-price ceiling,” said Pete Flint, Trulia co-founder and CEO, in a statement.

The total amount slashed from homes fell 14%, to $21.2 billion, compared with $24.7 billion in December. Houses in the luxury market — defined as those priced at $2 million and up — were hit the hardest, with an average discount of 14%, compared with 10% in the nonluxury market. Luxury homes are less than 2% of all current listings on Trulia, but make up 26% of that total discount, the company said.

The average discount nationwide stayed the same — 11% off of the original listing price.

The number of major U.S. cities with price-reduction levels at 30% or more dropped 50%, to seven, compared with 14 last month. Those with largest price reductions include Los Angeles, Calif., at 46%; New York City and Jacksonville, Fla., at 36%; Memphis, Tenn., at 34%; and Minneapolis, Minn., and Honolulu, Hawaii, at 33%.

Inventory levels of condos and single-family homes on Trulia’s site have dropped 4%, compared with a 9% decrease in December.

The continued drop-off might be attributable to the winter season, said Ken Shuman, a company spokesman. “It’s less competitive because there’s less inventory available,” he said.

Based on our personal experience, the lack of homes listed for sale in the local market is the driving force behind price stabilization.

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