Mortgage rates are inching upward and foreclosure rates are still concerning, but there is at least one positive sign in the housing market – if your selling.
Home price reductions are trending downward.
That may be a little dose of good news for frustrated sellers, but there are still bargains aplenty for buyers. And it depends on which part of the country you’re buying or selling.
Trulia.com, the real estate site, reports that 21 percent of homes currently on the market in the United States as of January 1, 2010 have had at least one price cut. It marks the second consecutive month that price reduction levels have decreased. And it is the lowest level since Trulia started tracking price reductions in April 2009.
The total amount cut from home prices also dropped to $21.2 billion, compared to $24.7 billion in December, a 14 percent decrease, Trulia said today.
The South has the lowest overall price reduction, with 20 percent of current listings having had at least one price cut, while the Northeast reported the biggest decrease in price reductions compared to the previous month, 12 percent, according to Trulia.
“Historically, low interest rates – currently available – and tax credit incentives are the ultimate price reductions for home buyers. As rates rise throughout the course of the year, buyers will need to adjust their purchase price ceiling,” said Pete Flint, Trulia co-founder and CEO.
Buyers seeking the $8,000 first-time buyer tax credit, or $6,500 move-up buyer credit, need to sign contracts by April 30 and close loans by the end of June.
The number of major U.S. cities with price reduction levels at 30 percent fell by 50 percent in January, Trulia said. Last month, 14 major cities saw a reduction of 30 percent or greater and that number has been reduced to just seven cities this month, Trulia reported.
Luxury homes listed at $2 million and higher continue to be hardest hit with the average discount rising to 15 percent for the first time since Trulia started tracking in April 2009.
Click here for the list of 50 U.S. cities with the highest percentage of listings with price reductions.
