Prices Plunge as Sellers Compete with Foreclosures


Inqiuring minds are reading the Central Valley Business Times article on how sellers are trying to undercut each other to get their houses sold:

Sacramento and Fresno (the only Central Valley cities large enough to be in the survey) are among those where houses are seeing price reductions.

With 32 percent of all homes on the market getting price reductions this month, Fresno ranks ninth in the nation among the 50 largest cities. Sacramento’s 28 percent earns it the 13th place on Trulia’s list.

Fresno’s increasingly desperate sellers have dropped prices by an average of 13 percent. Sacramento sellers have dropped prices an average of 11 percent, according to Trulia.

But there are cities in worse shape than this in other states: 1) Minneapolis reached 46 percent and 2) Phoenix topped 40 percent for the first time, becoming only the third city with this distinction.

“Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand — on that score, buyers clearly have the advantage this holiday season,” says Tara-Nicholle Nelson, consumer educator with Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”

“We typically see an increase in price reductions toward the end of the year, so buyers hoping to add a home to their holiday wish list are in prime position to take advantage of low prices,” says Ms. Nelson. “Even with price reductions climbing in many areas of the U.S., sellers can still aim to get the best price for their homes by ensuring their home is in top condition, the easiest way to make it stand out from all the foreclosures on the market, and pricing it to compete with the distressed homes in the area.”

Happy Holidays!

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