2010 Brings New Lows in Home Price Reduction Levels

Looks like we are hitting a trough for the hoe price reductions. The time is now to jump on a good deal, particularly with the April deadline for the renewed Federal Housing Tax Credit!

From HousingZone:

Reduction levels of home prices reached a new low, real estate search site Trulia announced Tuesday. This month's survey marks the second month of declines in price-reduction levels. Of the site's single-family and condominium listings, just 21% that went on the market on or after Jan. 1 have experienced at least one price cut, the lowest share since the site started the survey in April 2009. The previous low was in December, at 22%. The data do not include foreclosures.

Accounting for the reduced reduction levels are historically low interest rates and tax credit incentives. The total amount slashed from homes fell 14%, to $21.2 billion, compared with $24.7 billion in December. Price-reduction hot spots and cool spots are emerging.

- The number of major U.S. cities with price-reduction levels at 30% or more dropped 50%, to seven, compared with 14 last month.
- Those with largest price reductions include Los Angeles: 46%; New York City and Jacksonville, Fla.: 36%; Memphis :34%; and Minneapolis and Honolulu: 33%.
- The South saw the lowest overall level of price reductions, at 20%.
- At 22%, the West, Midwest and Northeast experienced a slightly higher level of reductions.

Luxury houses priced at $2 million and up were hit with an average discount of 14%, compared with 10% in the nonluxury market. Luxury homes are less than 2% of all current listings on Trulia, but make up 26% of that total discount.

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