Prices stabilize in some hard-hit areas

Some 24.6 percent of current homes on the market in the United States as of July 1, 2009 have experienced at least one price cut, totaling $27.1 billion in reductions, according to recent research from The average price-reduced home has seen a listing price reduction of 10.4 percent, a moderate decrease from 10.6 percent the month prior. 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. Several major metros are beginning to see signs of recovery with significant decreases in the number of price-reduced properties for sale compared to last month’s report. Areas that have experienced the biggest decreases in home price reductions include:

Las Vegas
Los Angeles
Washington D.C.

In markets like Detroit, Miami and NYC, sellers more dramatically overpriced their homes, and are making more drastic cuts. In Detroit, sellers dropped their price an average of 21 percent, in Miami sellers slashed 15 percent off their original asking price and in New York City sellers cut 13 percent off their price. Compared to the previous month, four new cities entered the top ten majors for markets that have greatest percentage of listings with price reductions-Milwaukee, Chicago, New York City, and Raleigh.

Source: Real Trends

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