ZipRealty, the online and retail real estate brokerage chain, reported Wednesday that the number of price-reduced homes on the market this September increased 24.4% compared to the same month last year, reflecting an apparent return to price cutting as the effects of the federal home buyer tax credit have worn off.
According to the Zip's Price Reduction Index, a monthly review of MLS-listed properties in 26 markets surveyed by the brokerage, list prices were cut at least once for 47.8% of homes on the market in September, an increase of nearly 10% over last year and up 2.1% from August. The report said sellers had reduced their list prices an average of twice with a median reduction of $19,165.
"Sellers appear to be cutting their prices again," said Leslie Tyler, vp/marketing for ZipRealty. "Last spring the tax credit helped to bring buyers into the market, and we didn't see sellers reducing prices by as much. But now sellers seem to be cutting prices more aggressively going into the typically slower fall and winter seasons."
The median list price of homes tracked by Zip dropped 1.75% from August to $245,265. In 10 markets--Jacksonville, Phoenix, Minneapolis/St. Paul, Orlando, Chicago, Tucson, Baltimore, Austin, Orange County and Seattle--more than half of homes on the market in September included at least one price reduction. Jacksonville continues to have the highest percentage of price-reduced homes out of the 26 markets surveyed, with more than 55% having taken at least one price cut. Florida remains hard hit: Homes listed for sale in Miami/Ft. Lauderdale/Palm Beach were the most deeply discounted in the nation with a 23% cut from the original asking price, followed by Orlando (11.7%) and Jacksonville (11.8%).
Markets with the largest median price reduction in absolute dollars included San Francisco and Orange County at $35,000; San Diego at $30,000; Miami/Ft. Lauderdale/Palm Beach at $26,000 and Washington D.C. at $25,000.
Learn more about markets featured in this article: Miami, FL.