The Average U.S. Home Sale Has 2.15 Price Reductions Per Listing, Says ZipRealty Report

The Average U.S. Home Sale Has 2.15 Price Reductions Per Listing, Says ZipRealty Report

Residential News » Residential Real Estate Edition | By Michael Gerrity | January 12, 2011 12:36 PM ET

According to a report surveying 26 US markets by ZipRealty (NASDAQ:ZIPR), the number of price-reduced homes on the market this December remained at high levels compared to 2009, rising 23.4 percent.

The report also found that in the markets surveyed, the median list price in December was down 3.9 percent at $225,434, compared to November when the median list price was over $9,000 more at $234,484. 

California markets showed the largest month-to-month markdown, with the median list price in San Francisco dropping $35,195, followed by San Diego (median list price dropped $19,100) and Orange County ($17,100) as sellers slashed prices.

According to the report, both price-reduced inventory and total inventory decreased in November compared to October, but this December's month-over-month decline was far more dramatic, with total inventory diving 5.3 percent and price-reduced inventory falling 7.7 percent. Both figures are still large increases over last year, with total inventory up 11.2 percent over December 2009 and reduced inventory up 23.4 percent.

"We continue to see high inventory levels and declining prices," said John Oldham, Director of Marketing for ZipRealty. "Year-end inventory is declining but is still much higher than 2009 levels."

The percentage of inventory that has experienced at least one reduction dropped for the first time in months, decreasing to 47.2 percent in December, compared to 48.4 percent in November and 48.3 percent in October of 2010.

"December is traditionally a slow month for home sales, and this could be a contributing factor to the decline over the previous two months in inventory as well as the drop in median list price," Oldham added.

Highlights of ZipRealty's December index include:

  • The number of price-reduced homes on the market is up 23.4 percent over December of 2009
  • Price-reduced homes fell faster than total inventory, with the number of price-reduced homes plunging 7.7 percent compared to a 5.2 percent decrease in overall inventory in December as compared to November
  • The median list price dropped by 3.9 percent from November to $225,434, and the average percentage of price reduction amount to list price rose to 7.9 percent in December
  • In 9 markets, more than half of homes for sale in December included at least one price reduction, down from 11 markets in November. Those markets are Phoenix,  Jacksonville, Minneapolis/St. Paul, Tucson, Orlando, Chicago, Seattle, Baltimore, and Orange County
  • Homes listed for sale in Florida markets were discounted by the largest percentage of original list price nationwide with Orlando leading (12.4 percent), followed by Miami/Ft. Lauderdale/Palm Beach (12.2 percent) and Jacksonville (12 percent)
  • Markets with the largest median price reduction in absolute dollars were:

Real Estate Listings Showcase

This website uses cookies to improve user experience. By using our website you consent in accordance with our Cookie Policy. Read More