Life Inc.: Home for sale: Reduced to move!

By Allison Linn, senior business writer

These days, homebuyers seem to be getting more and more like regular consumers, unwilling to pay full price because they know that same house – or one just like it – could end up on the sale rack pretty soon.

Increasingly, that bet is paying off.

The percentage of homes on the market that have had their price reduced has slowly edged up over the course of the year, according to real estate brokerage ZipRealty’s analysis of prices in 26 major markets.

ZipRealty stated about 47 percent of homes in those markets had at least one price reduction in August, up from about 40 percent in January.

The price drops may be helping move some homes, but they do not appear to be enough to really jump-start the weak real estate market. The National Association of Realtors stated Thursday that existing home sales rose 7.6 percent in August from a month earlier, to a seasonally adjusted annual rate of 4.13 million. Still, that is a 19 percent drop from a year earlier.

The NAR stated median price for an existing home was $178,600, up less than 1 percent from a year ago.

Buyers might be smart to hold out even after the price has been reduced once. According to ZipRealty’s data, sellers who drop their asking price typically reduce the price a second time.

How much should you anticipate your dream house to go down in price?

The median reduction was $19,092 in August, or 7 percent of the list price. That amount that has remained fairly steady this year, according to ZipRealty’s analysis.

The data was culled from MLS listings in major markets such as Boston, Dallas, Las Vegas, Seattle and Los Angeles. ZipRealty only included the 26 major markets in which it operates, representing most of the nation’s 35 biggest markets.

More source:

Life Inc. - Home for sale: Reduced to move!
Feds, states, banks agree to mortgage settlement – USATODAY.com
BofA to slash mortgage balances by $100000 or more - Mar. 9, 2012
Prudential | Retirement, Life Insurance, Real Estate, Benefits

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Submited at Friday, September 24th, 2010 at 12:00 pm on News by arrisa
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