Realtor | Corey Dwan

SELLERS FEEL THE HEAT AS THEY CONTINUE TO SLASH HOME PRICES THIS SUMMER
Down Economy and High Levels of Home Inventory Put Sellers at Disadvantage as Prices Continue to Drop

SAN FRANCISCO, July 14, 2010 – Trulia.com (www.trulia.com), smart real estate search to help you make better decisions, today announced that 24 percent of listings currently on the market in the United States as of July 1, 2010 experienced at least one price reduction. This represents a nine percent increase from the previous month. The total dollar amount slashed from home prices was $27.3 billion and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price.

Many of the largest U.S. cities saw significant increases in price reduction levels this month with 22 of the top 50 cities across the U.S. experiencing price reduction levels at 30 percent or more, compared to just 10 cities in the previous month. Minneapolis leads the way with 40 percent of its home listings experiencing at least one price cut. This is the third straight month that Minneapolis has held the top spot and no other city has reached the 40 percent mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at nine percent, the city’s total dollar amount slashed from home prices was $30.1 million.

“Sellers are feeling the heat this summer as the economic recovery simmers down and home inventory levels climb,” says Pete Flint, co-founder and CEO of Trulia. “We’re seeing more and more sellers reduce their home listing prices to attract potential buyers, who definitely have the upper hand in negotiations this season. The slow start to the summer season is a major concern that we are heading towards a double-dip in the second half of this year.”

Western U.S. Leads with Price Reduction Increases
In the first half of 2010, cities in the Western U.S. were experiencing a decrease in reductions. This month, the same cities experienced some of the largest surges in price reductions compared to the previous month. Oakland increased 38 percent month-over-month and San Diego saw reductions increase by 25 percent. Additionally, Honolulu experienced a 21 percent increase from the previous month and Las Vegas increased by 20 percent. Texas cities also saw significant increases in price reductions with San Antonio and El Paso increasing by price 21 percent and 20 percent respectively. The following U.S. cities experienced the biggest increases in price reductions from June 1, 2010 to July 1, 2010:

City State June 2010 July 2010 Percentage Change
Oakland CA 13% 18% 38%
San Diego CA 16% 20% 25%
Omaha NE 25% 31% 24%
Virginia Beach VA 26% 32% 23%
Honolulu HI 19% 23% 21%
San Antonio TX 19% 23% 21%
El Paso TX 15% 18% 20%
Las Vegas NV 10% 12% 20%

Luxury Market Still Feeling The Pain
Price reduction levels for luxury homes (those listed at $2 million and above) continue to provide large discounts with an average of 14 percent off of the original listing price. The average discount for homes priced less than $2 million remains at 9 percent.

July 2010 Price Reductions - Top 50 U.S. cities based on population: Download full chart.
To download an infographic illustrating the data, click here.

Rank City State Percent of Listings with Price Reductions Average Reduction (%) Total Amount of Reductions
1 Minneapolis MN 40% 9% $30,138,399
2 Milwaukee WI 39% 9% $22,856,449
3 Dallas TX 38% 9% $164,878,956
4 Boston MA 34% 7% $51,750,099
5 Baltimore MD 34% 11% $37,273,818
6 Phoenix AZ 33% 13% $103,082,616
7 Memphis TN 33% 9% $24,156,340
8 Kansas City MO 32% 9% $34,122,816
9 Tucson AZ 32% 10% $63,589,760
10 Columbus OH 32% 8% $20,431,656
11 Mesa AZ 32% 12% $29,327,845
12 Jacksonville FL 32% 11% $88,552,440
13 Virginia Beach VA 32% 8% $38,029,348
14 Albuquerque NM 31% 8% $32,371,380
15 Louisville KY 31% 6% $15,619,604
16 Omaha NE 31% 7% $12,518,865
17 Arlington TX 31% 7% $ 9,206,050
18 Cleveland OH 30% 12% $11,384,016
19 Chicago IL 30% 8% $199,322,934
20 Atlanta GA 30% 10% $175,613,656
21 Indianapolis IN 30% 7% $31,539,844
22 Seattle WA 30% 9% $68,197,903
23 Portland OR 29% 8% $42,937,356
24 Philadelphia PA 29% 8% $66,643,452
25 Raleigh NC 28% 7% $34,265,088
26 Nashville TN 28% 8% $34,065,495
27 Long Beach CA 27% 9% $24,944,304
28 Fort Worth TX 27% 8% $35,456,022
29 Houston TX 27% 8% $144,307,968
30 Colorado Springs CO 27% 7% $38,904,960
31 Tulsa OK 26% 6% $16,068,222
32 Austin TX 26% 7% $74,626,954
33 Washington DC 25% 10% $72,029,714
34 San Francisco CA 25% 8% $71,276,436
35 Charlotte NC 25% 9% $76,384,896
36 Oklahoma City OK 24% 7% $11,470,734
37 San Antonio TX 23% 8% $61,355,501
38 Los Angeles CA 23% 11% $214,794,838
39 Honolulu HI 23% 8% $32,572,680
40 Denver CO 22% 8% $48,509,205
41 Miami FL 21% 13% $162,958,950
42 Sacramento CA 20% 9% $14,727,930
43 San Diego CA 20% 8% $73,750,825
44 Fresno CA 19% 11% $9,713,964
45 Detroit MI 19% 26% $10,058,664
46 El Paso TX 18% 7% $12,642,480
47 Oakland CA 18% 10% $9,580,388
48 New York NY 17% 10% $442,588,446
49 San Jose CA 16% 8% $23,803,457
50 Las Vegas NV 12% 15% $98,065,686

Trulia Price Reductions
Trulia is the first and only national real estate site to provide consumers with the ability to use price reductions as a search filter in their quest to find a deal in today’s market across all 50 states. Trulia’s Price Reduction feature can be accessed from the Trulia homepage and is deeply integrated into the existing search experience on the search results page and via the advanced search tab. Detailed information regarding multiple price reductions and prior sold data is now available on each property listing page.

Providing home buyers with access to price reduction data empowers them to make more informed decisions regarding which home to purchase and helps consumers get the most home for their dollar. It also helps home sellers price their homes competitively as more homes come onto the market.

Methodology:
All price change data is from live listings on Trulia.com, as of July 1, 2010 and tracks all price reductions from July 1, 2009 to July 1, 2010. This data does not include foreclosure properties. Trulia obtains its listing information from brokers, agents, third party aggregators and Multiple Listing Services (MLSs). The percentage of listings with price reductions includes any non-foreclosure property on Trulia.com that has experienced at least one price reduction since it was first posted on the site. The city level data is for listings within the city boundary, and not for metro areas.

About Trulia, Inc.
Trulia.com is the most comprehensive real estate site focused on empowering you with smarter tools to help you find the right home. Whether you are an active buyer, seller or real estate enthusiast, Trulia gives you all the information you care about from rich property data to a personalized search experience. We are focused on helping you find the home that truly meets your needs, and delivers on what’s most important for you. Ultimately, we built a smart real estate search experience bringing together local information, community insights, market data and national listings all in one place, all for you.

Media Contacts:
Cerena Hsieh for Trulia, chsieh@sutherlandgold.com, 415-848-7178

Ken Shuman, kshuman@trulia.com, 415-517-7211