Trulia: $27B in Home Price Reductions

The San Francisco-based real estate research company ""Trulia, Inc."":http://www.trulia.com reported last week that 24.6 percent of homes on the market in the United States as of July 1, have had at least one price cut, totaling $27.1 billion in reductions.
The company says the average price-reduced home has seen its listing price slashed by 10.4 percent, a moderate decrease from 10.6 percent as of June 1.
According to Trulia’s ""market data"":http://info.trulia.com/index.phpxs=43&item=68, the top-10 cities with the largest percentage of price reductions, as of July 1, include:
  1.Jacksonville, Florida - 39 percent
  2.Boston - 35 percent
  3.Minneapolis - 33 percent
  4.Milwaukee - 33 percent
  5.Honolulu - 33 percent
  6.Tucson, Arizona - 31 percent
  7.Chicago - 31 percent
  8.New York - 31 percent
  9.Austin, Texas - 31 percent
10.Raleigh, North Carolina - 31 percent
Trulia points out that some of the hardest hit areas have seen significant decreases in terms of the number of homes with price reductions, indicating that stabilization is beginning to occur in these areas. For example, you can see from the list above that no California cities and only one in Florida made the top 10 list this month.
Areas that have experienced the biggest drop off in home price reductions in Trulia’s study include Las Vegas, Los Angeles, Dallas, Washington D.C., and Baltimore. In fact, Las Vegas and Los Angeles, two of the hardest hit markets during the past few years, turned in the biggest improvements in the number of price-reduced homes compared to one month ago and appear to be on the upswing.
Pete Flint, Trulia co-founder and CEO, said, ""All real estate is local and we’re seeing glimmers of hope as price stabilization occurs in major cities across the nation, including some of the earliest hit cities that have experienced huge declines in the past few years. On the flip side, perhaps sellers are pricing their homes more rationally to get them off the market as soon as possible.""
According to Trulia, prices of luxury homes are continuing to drop dramatically. The company said 25.8 percent of homes with a selling price greater than $1 million are seeing price reductions, compared to 24.5 percent of homes on the market for less than $1 million. While the percentage of homes seeing discounts in the two price ranges is similar, Trulia says reductions on luxury homes are significantly more, with 13 percent being slashed off the original price compared to only 9 percent for homes under the $1 million dollar price tag.