Rock-bottom interest rates haven't done it. Even the government's tax credit program made only a fleeting difference. Perhaps this news will spur reluctant home buyers to finally take the plunge: $29 billion was just slashed off listing prices nationally. Home buyers, please start your engines?
Price reductions for homes currently listed on the U.S. market have increased -- for the third consecutive month -- making up 26% of the inventory and representing more than $29 billion in lowered prices, according to research conducted by Trulia.com, a real estate Web site. The data do not include foreclosed properties.
What does this mean? Sellers across the country, most notably in five Midwestern and Southwestern cities, took a big gulp of a drink called "Get Real" and are pricing their homes to go.
Topping the list of the 50 largest U.S. cities with home-price reductions are Minneapolis, Minn.; Milwaukee, Wis.; Phoenix, Ariz.; Mesa, Ariz. and Albuquerque, N.M. Whether the homes were overpriced because they wished it were still 2005, or they're competing with foreclosed homes for sale, sellers in these metropolitan areas are serious about making a deal. That's good for buyers and the economy.
Percent of listings with price reductions
average reduction (%)
Total amount of reductions