10 U.S. Cities Where Sellers Are SLASHING Home Prices (PHOTOS)

Looking for a real estate bargain? Price-reduced homes are available on average at 10 percent off their original listing price and this month, according to the real estate site Trulia, sellers nationwide slashed home prices by an aggregate $26.7 billion.

Nevertheless, it's a real estate market that is still fraught with risks. New home sales plummeted in May to the slowest rate since the Commerce Department began tracking data in 1963.

Cities in the Midwest and South experienced the highest percentage increases in home price reductions year-over-year, according to Trulia's June Price Reduction report. With sellers starting to feel the summer heat, cities like Milwaukee and Jacksonville, Florida slashed prices on 36 percent and 30 percent of listed homes, respectively.

The price markdowns are also most prominent amongst luxury homes ($2 million and above), which account for less than 2 percent of national inventory but almost 25 percent of the total dollars slashed off all the homes for sale.

Which cities saw the greatest amount of home sellers slashing prices? Check out Trulia's list below:

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Cleveland, Ohio - 30% Of Homes Had Their Price Slashed

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Total Amount of Reductions: $88,206,358 Average Individual House Price Reduction: 11%

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Total Amount of Reductions: $88,206,358
Average Individual House Price Reduction: 11%

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Cities Where Home Sellers Are Slashing Prices

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Comments

[laymancanuck]

05:39 PM on 07/13/2010

There is a piece of information that eludes me. I don't believe it is publicize in an attempt to try to support the housing market. What are homes actually selling for compared to there asking price? Asking prices are greatly discounted, should a buyer attempt to secure a home with an offer that is 10%,20%,30% below asking.What's the average excepted offer to asking? Your comments are valued, Thank You.

[momand2boys]

11:48 PM on 07/03/2010

Our house in Phoenix, moderately sized at 2000 square feet (the next street has houses that are 3500 feet and more) continues to depreciate. We bought in 2002 well before the housing bubble started here. Our house is now worth $20,000 less than we paid for it and half the price of its high point in 2006. And the prices are still falling. There are so many foreclosures in our neighborhood it is ridiculous (especially in those behemoth houses the next street over).

It is to the point where we seriously don't know what to do.

[HockeyPlayer]

07:26 PM on 07/03/2010

Haven't seen too many real estate bargains in the SF Bay Area. Sure, prices are down a little in some outlying areas, but not in the metro area. New construction sells quickly, and so do existing homes. Bidding wars are not uncommon either, especially in communities with good schools. Not hard to spend almost a million dollars for a condo, in many areas of Marin County.

[Ashley Marcello]

01:24 PM on 07/01/2010

Chandler Arizona home prices are dropping fast as well - www.realaz.com

[trainer3]

06:30 PM on 06/29/2010

Gee, that was helpful.

?

[NHCandCenter]

12:56 PM on 06/28/2010

A big part of falling home prices is the decline of the suburbs. The suburban exodus of the last 50 years or so led to over-development of over-sized houses that people couldn't afford once the bubble burst. Minnesota - still a great place to live despite the cold, trust me - put its trust in teh suburbs as much as other metro areas, and now has to deal with a large surplus of exurban houses. Trouble is, these suburban houses are exactly what buyers aren't interested in anymore. http://www.nhcopenhouse.org/2010/06/dealing-with-death-of-pleasantville.html

[lalin vong]

04:33 AM on 06/28/2010

Why does the price of house in Minneapolis, Minnesota slash so high? because of the weather is so cold or there is no more job available in that City? that is why people have to move to other cities? or because there is no demand of house in Minneapolis? I think it is a second biggest city of Minnesota. It suppose to have high demand of house...

[getoffmedz]

09:40 AM on 06/27/2010

Later this year when folks start abandoning the Gulf Coast region and Florida many of these real estate markets will see a significant uptick in value.

[lovbug]

04:01 PM on 06/27/2010

doubt it!

[LinkSync]

05:46 PM on 06/27/2010

Sure!
Abandoned properties are always more valuable aren't they?They "uptick" all the surrounding properties too, don't they?

Well my old foreclosed on house isn't worth more and sure didn't help out my old neighbors either.
It was worth 260k 3 years ago.

It just went on the market for 64k.
They won't get it either.
They might get 60k. But my son just bought one in the same neighborhood for 45k, very simlar in size etc.

[ontariogirl]

09:25 AM on 06/28/2010

Your house went from 260K to 64K in 3 years? That is awful. I guess its good for buyers but I feel so bad for those who have lost in the market.

[bighat]

01:35 AM on 06/27/2010

Want to invest in a house. Then buy one in Vegas.

[bighat]

01:33 AM on 06/27/2010

Believe what you want about Dallas.

4 of the 5 fastest growing suburbs are in the Dallas Area. Talking increases of over 300%.

One big change is the blacks are leaving the city and moving to the suburbs.

[LeeCalif]

12:06 AM on 06/27/2010

Another criminal ?

http://www.calculatedriskblog.com/2010/06/short-sale-agent-takes-advantage-of.html?utm_source=patrick.net

[John51]

08:56 PM on 06/26/2010

I have rented and I have purchased, and frankly, I am much more comfortable purchasing. I am almost 60 years old and many of my generation have not squandered our hard earned dollars paying interest to the banks but instead have been thrifty, saved our money, and paid cash. That extends to home purchases as well. My parents bought their first home at age 35, put 50% down with a 15 year loan, and retired in their paid off homes. I purchased my first home, a fourplex, at age 38 with 45% down and five years of hard work later, I purchased my home for cash. At age sixty I have a new home, also paid in full, am retired, and am enjoying the fruits of my labor. I like this better then renting.

[LeeCalif]

12:05 AM on 06/27/2010

John-
Go to Patrick.net and you'll understand WHY IT MAKES SENSE TO RENT instead of buying right now for most people .

[lovbug]

04:09 PM on 06/27/2010

Thanks! very informative article. I've been saying that to my friends for 2 years because my former boss who was a tax and real estate attorney always preach that same message.

[UNLVGOP]

11:28 PM on 06/27/2010

That article is talking about the coasts, and of course thats true with extremely high property taxes.

In Las Vegas on the other hand, I am renting an aparement just under 700 sq ft (1BR/1BA) and paying $610

I could buy a 2 BR/2BA condo, 1200+ sqft with a detatched garage for less than my rent....including mortgage/HOA/property taxes etc. That's only with 3.5% down.

Why is it better to rent than own...that makes no sense and thats why I'm looking to buy...

[rhymney]

04:42 PM on 06/27/2010

Smart, unfortunately everyone wants to live in the biggest house they can possibly afford. That means lots of debt and complaining about the bank thet just sold themselves to.

[RedRat]

02:14 PM on 06/26/2010

It is not terribly surprising about the Arizona prices, since they, like Nevada, were big growth and booming prices during the Housing Bubble. A bit surprised by Boston being the list, though, but they like Silicon Valley and the Seattle area had substantial increases in housing prices due to the High-Tech industry.

Living in the Seattle Area, I think housing prices here are on the high side, especially when you compare it to average household incomes here. In the end, the average household could not afford to buy the average house on the market. There are quite a few McMansions and pseudo-McMansions that sit on the market for quite some time here.

[kkrimmer]

01:24 PM on 06/26/2010

There were 4 million foreclosures in 2009, it is expected there will be 5 million in 2010.

Banks are keeping foreclosed properties OFF the market (called shadow properties) so not to flood it and drive prices down even more, but how long can they keep them this way?

With milliions of American losing unemployment benefits (Republicans stopped continuation of benefits), there will be many more foreclosures.

The stock market will continue to wildly fluctuate over the next 2 years, and if you believe the Black Swan'ers.

[RedRat]

02:18 PM on 06/26/2010

While keeping foreclosed properties off the market is probably good for the bank and home owners in those neighborhoods, reduced prices on homes would be helpful to new buyers. In reality, what the banks are doing is artificially keeping prices high in order to recoup their losses on failed mortgages. However, If the house sits empty or is rented, they run the risk of the house being vandalized or run down. People knowing that they are renting a foreclosed property are not apt to take care of such a rental unit.

[TobyPLD]

01:23 PM on 06/26/2010

AZ prices are dropping cause the illegal rental properties are vacant!! This is GOOD :D

[TheCommons]

07:35 PM on 06/26/2010

And all the groceries those absent renters don't buy will help the local economy too.

[JStading]

05:29 PM on 06/27/2010

How does one have anything to do with the other? If there are more rentals on the market, that doesn't necessarily translate to a higher home sale price. AZ prices are dropping because (1) this place is miserable to live in, (2) the unemployment rate is staggering since the bulk of the economy was built around home sale, (3) the housing bubble propped homes up to an absurd average house price. That let people debt their homes up to a point that only continued 20%/year increases in home values could permit them to sustain their spending. When housing crashed, people got foreclosure notices. The values are falling faster now because it makes little sense for the average person to live in a home that has had its home value fall roughly 40%-60% within the past 18 months.