Home Listings Average More Than Two Price Reductions in December

by Houston Agent

The number of price-reduced homes on the market this December remained at high levels compared to 2009, rising 23.4 percent according to a report surveying 26 US markets issued by national real estate brokerage, ZipRealty.

Small House Under Glass Dome

Image by moodboard/Corbis

The report also found that in the markets surveyed, the median list price in December was down 3.9 percent at $225,434, compared to November when the median list price was over $9,000 more at $234,484. California markets showed the largest month-to-month markdown, with the median list price in San Francisco dropping $35,195, followed by San Diego (median list price dropped $19,100) and Orange County ($17,100) as sellers slashed prices.

According to the report, both price-reduced inventory and total inventory decreased in November compared to October, but this December’s month-over-month decline was far more dramatic, with total inventory diving 5.3 percent and price-reduced inventory falling 7.7 percent. Both figures are still large increases over last year, with total inventory up 11.2 percent over December 2009 and reduced inventory up 23.4 percent.

“We continue to see high inventory levels and declining prices,” says John Oldham, Director of Marketing for ZipRealty. “Year-end inventory is declining but is still much higher than 2009 levels.”

The percentage of inventory that has experienced at least one reduction dropped for the first time in months, decreasing to 47.2 percent in December, compared to 48.4 percent in November and 48.3 percent in October of 2010.

“December is traditionally a slow month for home sales, and this could be a contributing factor to the decline over the previous two months in inventory as well as the drop in median list price,” Oldham added.

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