Sellers Continue to Cut Prices

Nearly 25 percent of all U.S. homes for sale on Aug. 1 had a price cut in July, according to data compiled by the real estate Web site Trulia.com.

The percentage of price reductions has continued to increase month-over-month for the past three months. The total value slashed off active listings now totals $27.8 billion. The average reduction was 10 percent from the original price.

Cities showing significant increases in the percentage of listings with price cuts from June 1 to Aug. 1 were:

Fresno, Calif.: 67 percent
Colorado Springs, Colo.: 27 percent
Kansas City, Mo.: 25 percent
Oklahoma City, Okla.: 24 percent
Albuquerque, N.M.: 22 percent.

Cities with significant declines in the percentage of listings with price reductions included:

Dallas: -42 percent
Las Vegas: -33 percent
Louisville, Ky.: -33 percent
Los Angeles: -19 percent
Washington, D.C.: -17 percent

Source: Trulia.com (08/14/2009)