The price of nearly one in four U.S. homes for sale on July 1 had been sliced at least once since landing on the market, data compiled by real estate website Trulia.com showed on Friday.
Prices were cut by an average of 10.4 percent from the original price, or $41,655 of a median house price, Trulia.com said in a report obtained by Reuters prior to its scheduled release.
Detroit, Las Vegas and Miami had the biggest price reductions, down by an average of 21 percent, 16 percent and 15 percent, respectively, the data showed.
As of July 1, a total of 24.6 percent of homes had seen their prices cut, up from 23.6 percent the previous month.
The lowered prices, however, are not necessarily a negative.
Price reductions will help stabilize the overall market, Pete Flint, Trulia co-founder and chief executive, said in an interview with Reuters.
Buyers are still waiting for sellers to become more realistic about their asking price and when that occurs, buyers are swooping in, he said. The good news is sales continue to increase and with the prices continuing to drop, inventory levels will drop as well.
Nationwide, total reductions for all homes for sale on the market on July 1 was $27.1 billion, Trulia said.
Of luxury homes, or those costing $2 million or more, 24.3 percent have seen a price reduction, with an average reduction of 14.4 percent off the original asking price.
For homes costing $2 million or less, 24.4 percent have been reduced in price, with an average price drop of 9.5 percent, the data showed.
The luxury market will be the last area to rebound, Flint said. Most active buyers today are investors and first-time home buyers and they are not interested in the luxury market.
Of single-family homes for sale, 26.9 percent have seen at least one price reduction and the average reduction was 9.8 percent. Among condominiums for sale, 28.2 percent have been reduced in price at least once and the average reduction was 10.5 percent, the data showed.
(Editing by Leslie Adler)