Nearly 1 in 4 homes for sale reduced price
NEW YORK (Reuters) - Nearly one in four U.S. homes for sale on June 1 had their prices sliced at least once since landing on the market, data compiled by real estate website Trulia.com showed on Friday.
A total of 23.6 percent of houses have seen their price cut. The average reduction was 10.6 percent of the original price, or $43,650 of a median house price, Trulia.com said in a report exclusively obtained by Reuters prior to its scheduled release.
These lowered prices, however, are not necessarily a negative.
"Price reductions may turn out to be this year's most effective stimulus package," Pete Flint, Trulia co-founder and CEO, said in an interview with Reuters.
"There are many neighborhoods across the country that are running the equivalent of a blue light special on housing," he said.
"These deals are doing what they are intended to do -- encourage purchasers and move inventory," he said.
Nationwide, in dollar terms, $27.4 billion has been reduced for all homes for sale on the market on June 1, Trulia said.
Of the luxury homes, categorized by those costing $2 million or more, 24 percent have seen a price reduction, with an average reduction of 14.3 percent off the original asking price. For homes costing $2 million or less, 23.6 percent have been reduced in price, but the average price drop was only 9.7 percent off the original, the data showed.
"A lot of wealth has been wiped out in the financial markets in the past 12 to 18 months and owners of luxury homes have seen their pool of potential buyers shrink," Flint said.
Flint said his advice to luxury home owners is to sell only if necessary.
"The stock market is on the rise again and if this trend continues, the pool of buyers will increase over time," he said.
Of single-family homes for sale, 26.2 percent have seen at least one price reduction and the average reduction was 10.0 percent. Among condos for sale, 27 percent have been reduced in price at least once and average reduction is 10.6 percent, the data showed.
"You need to know how your home stacks up to others on the market in your area and you need to understand why you are selling and how quickly you are looking to move the property," he said.
On June 1, Detroit, Las Vegas and Miami registered the biggest reductions in price, with average homeowner price drops of 23 percent, 16 percent and 15 percent, respectively, the data showed.
(Editing by Chizu Nomiyama)
