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Home Price Reduction Levels Drop 26 Percent Year-Over-Year

Marking a sign of stabilization within the U.S. real estate market, home price reductions levels in April 2010 plummeted 26 percent from the same month last year, San Francisco-based ""Trulia, Inc."":http://www.trulia.com/, reported Wednesday.


According to the ""report"":http://info.trulia.com/index.php?s=43&item=87, 20 percent of current home listings had been reduced at least once as of April 1, 2010, down from 27 percent in April 2009.

""With such a dramatic drop in home price reductions over the past year, we're beginning to see early signs of stabilization in the housing market on a national level, as well as locally in certain markets,"" said Pete Flint, Trulia co-founder and CEO.

Trulia began tracking price reductions in April 2009 for 15 major U.S. cities. Of these original 15 cities, those hit


earliest and hardest have experienced huge decreases in price reductions compared to the previous year, with Las Vegas, New York, San Diego, and San Francisco showing the most notable recovery.

Price reductions declined 54 percent in Las Vegas, 45 percent in New York, 52 percent in San Diego, and 45 percent in San Francisco. Seattle was the only original city to see a significant increase in price reduction levels in April, with a 15 percent spike compared to the previous year.

In addition to seeing fewer homes reduced in price, Trulia's report found that several cities have seen significant decreases in the percentage slashed off the original listing price compared a year ago. In fact, New York and San Francisco both saw discounts on home prices drop by more than 30 percent compared to April 2009.

On the other hand, several cities actually experienced increases in the average price reduction. Denver, Houston, Phoenix, and Seattle all saw double-digit percentage increases from the same month last year. The biggest year-over-year increase was seen in Houston, where price reductions surged 38 percent.

""As the federal stimulus comes to an end this month, coupled with expected increases in interest rates and foreclosures, the next few months will be very telling for whether the U.S. housing market can be self-sustaining over the longer-term,"" Flint said.

About Author: Brittany Dunn


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