US home sellers slash prices by US$28.1 bil, says Trulia

LOS ANGLES: US home sellers with properties on the market as of Nov 1 had slashed asking prices by US$28.1 billion (RM95.1 billion) as they sought to attract buyers, Trulia Inc said.

The average discount was 10%, little changed from a month earlier, the San Francisco-based real estate data provider said on Nov 11. Almost 26% of homes for sale were reduced at least once. Luxury properties -- those costing US$2 million or more -- accounted for 25% of the dollar value of reductions and less than 2% of listings, Trulia said.

Sales of existing US homes increased 11% to a two-year high in the third quarter as an US$8,000 tax credit for first-time buyers lifted demand, the National Association of Realtors said on Nov 10. The median price fell 11% from a year earlier to US$177,900.

“We have seen a definite increase in the number of home sales,” Pete Flint, chief executive officer of Trulia, said in an interview. He credited the tax credit, while adding that many homes have been priced too high.

“Sellers are realising that they need to discount prices to sell their homes in today’s market, but it’s a tough pill to swallow,” Flint said.

The Northeast had the highest proportion of markdowns, with 29% of listings in the region discounted at least once, according to Trulia. More than 30% of homes for sale in Connecticut, Massachusetts, Rhode Island and New Hampshire were reduced, Trulia said.

Among the 50 largest US cities, Minneapolis had the highest proportion of discounts, with prices lowered on 39% of homes for sale. Milwaukee and Baltimore followed at 37%, Trulia said. Prices were cut on 36% of listings in Portland, Oregon; Memphis, Tennessee; and Jacksonville, Florida.

Detroit had the biggest average reduction, at 25%. Prices were lowered on 19% of homes in the city, resulting in US$10.3 million in total reductions, Trulia said.

Closely held Trulia collects data from brokers and agents, third-party providers and multiple-listing services. The survey included about three million properties for sale as of Nov 1, excluding foreclosures and undeveloped land. – Bloomberg LP