Fewer sellers cut U.S. home prices in Jan- Zillow

* 19.8 pct homes had price cut in Jan vs 20.5 pct in Dec

* Median price reduction 6.8 pct in Jan vs 6.7 pct Dec

By Julie Haviv

NEW YORK, Feb 3 (Reuters) - The percentage of home sellers cutting their asking price declined again in January, though sellers made slightly bigger reductions in prices, according to real estate website Zillow.com.

Nearly one in five homes, or 19.8 percent, listed for sale on the Zillow website had at least one price reduction as of the end of January, down from 20.5 percent in December, Zillow said in a report obtained by Reuters on Wednesday ahead of its scheduled release.

Home sellers reduced prices by a median 6.8 percent in January, up from 6.7 percent in December.

The percentage of homes with price reductions declined throughout 2009. In January 2009, 33.8 percent of homes listed on Zillow had a price reduction, and the median reduction was 9.1 percent.

The time that homes sat on the market edged down to a median of 109 days in January, from 110 days in December, Zillow said. Those figures, however, have been trending up from a 2009 low of 90 days in August.

In January 2009, homes spent 108 days listed on Zillow.

The median list price of homes fell 0.9 percent from December to January, to $208,000. That is 7.5 percent lower than the median listing price in January 2009, the company said. (Editing by Leslie Adler)