Richmond Real Estate Blog

In real-estate land it's price cutting season

 

More than a quarter (25.6%) of homes currently on the market in the United States have experienced at least one price cut, according to new research by online real-estate company Trulia.

The total amount slashed from home prices as of October 1 is $28.4 billion -- a $967 million increase from June 2009 -- and the average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.

Thanksgiving is commonly seen as the cut-off point for sellers in the real estate market, so aggressive price cuts go into play now. After that there is a significant drop-off in fresh listings and the market tends to pick up again in January. "We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue," says Trulia co-founder and CEO Pete Flint.

Seven of the ten states leading the country with the biggest listing price cuts are in the West. Significant number of foreclosures have made their mark in Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California where cuts are an average of 13% off the original list prices.

**Richmond indicates a less than 6% drop in resales.