24.4 Billion in Home Price Reductions to Date
Truilia reports that one in four homes listed have reduced listing price. 7% of homes currently on the market across the United States have experienced at least one price cut. In 15 major cities, including New York City, Chicago, Los Angeles, Boston and Atlanta, the average price reduction for homes ranged from $20,000 to $295,000.
Trulia does a breakout of homes that have reduced price to see which tiers are holding up best. In San Francisco, for example, million dollar homes that had price reductions were reduced, on average, by 13%. Homes listed for less than a million that had price reductions averaged 8%.
24.4 billion in home price reductions to date. and still, according to Trulias VP, Heather Fernandez, its not yet priced to sell. The thesis that expensive homes will always hold their value because the wealthy are less affected by economic cycles is just not true. At least not this economic cycle...it has severely wacked the wealthy and they are shopping just as hard for price as everyone else. This recession has been the great equalizer...
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