Sellers Slashing Prices, Housing Recovery Slips

Inquiring minds are reading a report from the Central Valley Business Times on how the housing recovery is slipping as sellers slash their prices:

…27 percent of listings had at least one price cut this month compared to 22 percent at this time last year. The average reduction was 11 percent, the same as in December 2009.

Among the 50 largest U.S. cities, Fresno in the Central Valley leads the list when it comes to price reductions, says Trulia.

It says 26 percent of homes on the market in Fresno dropped their prices this month. That’s a 117 percent increaser compared to a year ago when just 12 percent of sellers had cut asking prices.

It is beginning to get ugly…really ugly:

The ten cities with the highest percentage change in price reductions between December 2009 and December 2010 are all in the western and southwestern states of California, New Mexico, Nevada, Arizona and Texas. At the top of the list, Fresno more than doubled its year-over-year price reductions by 117 percent while Mesa and Phoenix — which have two of the highest price reduction levels this month — increased by 54 percent and 50 percent respectively.

Watch what happens when the Southern California spring “selling season” doesn’t arrive next year. That is when the light will finally dawn on most people.


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