Price Reductions Surpass Highest Historical Levels in 15 U.S. Cities, Remain Flat Nationwide
According to a report released this morning by Trulia.com, 27 percent of the homes for sale in November have experienced at least one price cut. Following four-consecutive months of increases, this rate has now flattened out nationwide. However, locally the story is different as 15 major cities hit an all-time high for price reductions in November.
“Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand -- on that score, buyers clearly have the advantage this holiday season,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”
The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.
Cities with Record High Percentage in Price Reductions
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% of Price Reductions in
Rank City State November 2010
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1 Minneapolis MN 46%
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2 Phoenix AZ 40%
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3 Mesa AZ 39%
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4 Baltimore MD 39%
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5 Chicago IL 35%
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6 Colorado Springs CO 34%
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7 Arlington TX 33%
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8 Cleveland OH 33%
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9 Fresno CA 32%
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10 Long Beach CA 32%
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11 Philadelphia PA 31%
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12 San Diego CA 29%
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13 Sacramento CA 28%
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14 Fort Worth TX 28%
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15 Denver CO 25%
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