Price Reductions Increase Year Over Year In December

An article brought to you by the CAR (California Association of REALTORS):

Trulia.com, a top site for homebuyers, sellers and renters, today released its December price reduction report for the U.S. housing market. Nationally, the number of listings with at least one price cut grew by 23 percent from 22 percent in December 2009 to 27 percent in December 2010. Meanwhile, average reductions remained flat at 11 percent in a year-over-year comparison, although they have risen by 10 percent since last month.

Among the 50 largest U.S. cities, 32 experienced price reduction levels at 30 percent or higher this month compared to just 14 in December 2009.

The 10 cities with the highest percentage change in price reductions between December 2009 and December 2010 are all in the western and southwestern states of California, New Mexico, Nevada, Arizona, and Texas.  At the top of the list, Fresno more than doubled its year-over-year price reductions by 117 percent while Mesa and Phoenix - which have two of the highest price reduction levels this month - increased by 54 percent and 50 percent, respectively.

“The homebuyer tax credit successfully created an impactful short-term demand which temporarily stabilized prices, but stopped short of being a true spark for real estate recovery,” said Pete Flint, co-founder and CEO, Trulia. “As I said in the beginning of the year, job creation will be the strongest indicator that the housing market is turning around.  Looking at the latest unemployment rate which rose to 9.8 percent this month, we expect prices will continue to decline between five and seven percent nationally especially in the first of half of 2011.”

WOW...we're making national news.  This data indicates we are the epicenter of this national issue.

WHAT THIS MEANS TO YOU:

Buyers, this is a perfect storm; interest rates are at record lows as are home values....strike while the iron's hot.

Sellers, be conservative.  Take into consideration your homes competition and price to sell before the competition.  There is an influx of NOD's (Notice of Defaults) headed our way, so it is wise to avoid the risk of your home losing interest due to more competitively priced properties.

If you have any questions....please ask me!  I am happy to help you, or someone you know.

Very sincerely,

Jillian