Home Price Reductions Slow

According to Trulia.com, 21 percent of the homes on the market as of January 1, 2010 have had at least one price reduction.  This represents the second straight month price reduction levels have decreased and the lowest level since April 2009.  The total dollar amount of the price reductions also decreased 14 percent to $21.2 billion.  The average discount for price-reduced held at 11 percent from the original list price.

The South had the lowest overall number of homes with price reductions at 20 percent.  The West, Midwest and Northeast each saw 22 percent of homes with price reductions.  The number of major cities with price reduction levels at 30 percent dropped from 14 in December to 7 in January.  Cities that saw the largest decrease in price reductions were Los Angeles at (46 percent decrease), New York (36 percent decrease), Memphis (34 percent decrease), Minneapolis  and Honolulu (both at 33 percent decrease).

Luxury homes (defined as those listed at $2 million  or higher) have been hit the hardest by price reductions with the average discount being 15 percent while the average discount for homes below $2 million held at 10 percent.

For Marietta homes for sale in December 2009, the average discount was 5.6 percent. For all houses in Cobb County for sale in December 2009, the average discount was 5.7 percent.