Trulia, Inc. announced that 26% of homes currently on the market in the United States have experienced at least one price cut. The data was the fourth straight month of price reduction data and was 10% larger compared to June of 2009. The data on the study was current as of September 1, 2009.
As stated in RISMEDIA,the steady rise in price reductions are a signal that sellers are still trying to adjust to market conditions. Trulia, Inc. states "that the $8000.00 federal tax incentive will extend the home purchasing season beyond the summer months, continuing to drive competition amongst sellers and ultimately leading to more price reductions", creating a great buying opportunity for eligible buyers.
Luxury homes continue to be the hardest hit segment of the market. Discounts of 14% and more off already slashed prices are common. Although luxury homes represent just over 2% of the market, they are responsible, according to Trulia, Inc., of 25% of the $28.5b in home price reductions to date.
