One in four U.S. homes for sale on August 1 had their prices marked down at least once since landing on the market, data compiled by real estate website Trulia.com showed on Friday.
A total of 24.4 percent of homes had their prices reduced in July, up from June's 23.6 percent. The average discount was 10 percent from the original price, or $40,173 of a median house value, Trulia.com said in its monthly price report obtained exclusively by Reuters prior to its release.
The average markdown dropped slightly from June's 10.4 percent, Trulia said.
These lowered prices, however, are not necessarily a negative.
Competition heats up in the summer as more inventory comes onto the market, Pete Flint, Trulia co-founder and CEO, said in an interview with Reuters.
Sales are increasing but prices are still falling, Flint said.
Homes that are priced competitively are the ones that are selling in today's market, he said.
Nationwide, in dollar terms, $27.8 billion has been reduced for all homes for sale on the market on August 1 and this number has increased by $700 million during the past month, Trulia said.
Of the luxury homes, categorized by those costing $2 million or more, 25 percent have seen a reduction, up from 24.3 percent. The average decrease for a luxury home was 14 percent off the original asking price, the data showed.
For homes listed for less than $2 million, 25 percent have seen a reduction, up from 24 percent. The deduction, however, was only 9 percent off the original asking price, the data showed.
Inventory levels continue to grow in the luxury market, Flint said. As inventory levels grow, I expect price reductions to continue to grow in the luxury segment.
Cities showing significant increases in percentage of listings with price cuts from June 1 to Aug 1 include Fresno, California and Colorado Springs, Colorado, which showed a 67 percent and 27 percent increase in price reductions, respectively, Trulia said.
Kansas City, Missouri; Oklahoma City, Oklahoma; and Albuquerque, New Mexico showed a 25 percent, 24 percent and 22 percent increase in price reductions, respectively, during this time period, the data showed.
Cities showing signs of recovery, with significant declines in percentage of listings with price reductions from June 1 to Aug 1, include Dallas, Texas and Las Vegas, Nevada, which showed 42 percent and 33 percent fewer price reductions, Trulia said.
Louisville, Kentucky; Los Angeles, California; and Washington, D.C. showed 33 percent, 19 percent and 17 percent fewer price reductions, respectively, during this time period, the data showed.