Home sellers reducing prices
Real estate search engine Trulia recently analyzed homes for sale to see how many are priced lower now than they were within the last year. Baltimore was one of a dozen cities with asking-price drops on at least 30 percent of listings. (Precisely 30 percent in Baltimore's case. The average reduction here? Ten percent, close to the national average.)
Trulia just sent me stats on the rest of the metro area. Here they are:
Sellers have dropped their asking prices on 34 percent of listings in Anne Arundel and Carroll counties, 32 percent of listings in Baltimore County, 31 percent of listings in Harford County and 30 percent of listings in Howard County.
The average price reduction was 8 percent in all the counties except Anne Arundel, which saw a 10 percent drop. That's not chump change for the sellers: The average decrease in Baltimore County was $33,000, and it was more than $40,000 in pricey Anne Arundel and Howard counties. (Time will tell whether it's enough to interest buyers.)
Some of the price drops are pretty darn large. Trulia offered as one example this home in Towson. The asking price was more than $1.6 million in the middle of April, according to the website, and several drops later is $998,500.
Trulia's analysis does not include foreclosure listings, but there's clearly an impact from those homes. In a press release, the company says:
The national average for price reductions on current home listings is 10.6 percent, but sellers in the areas hardest hit by foreclosures are slashing prices the most. Detroit home owners on average reduce their homes by 23 percent, while Las Vegas sellers reduce their homes by 16 percent and Miami sellers reduce their homes by 15 percent. Phoenix and Mesa are also experiencing deep price reductions with 13 percent slashed off the original listing price.
Some of these reductions are a bit here, a bit there, a bit more again, etc. It's probably psychologically easier on the homeowners than one big decrease. But is it helpful?