35% of Memphis listings have had prices reduced – (Trulia reports)

Author's Note

I put together this post from information based on an authoritative post from Trulia, using their data.  Just for a little more visual impact, I decided to throw in a graph from Zillow for comparison.  You will see a dramatic difference in the data presented.  Why?  Could be lots of reasons, but, bottom line, real estate really is local.  It’s more about micro markets and real people (including local real estate professionals) than an algorithm running hundreds of miles away.  Want to know what’s really happening in the market?  Contact a real estate professional in your area.

Trulia’s monthly report on Sales Price Reduction, seems to show a slowing in across the board price reductions for listed homes;  however, a closer read shows that price reductions have impacted values significantly in most areas.

From the Trulia Blog

Our December home price reduction report shows that 22% of homes currently on the market in the U.S. as of December 1, 2009 have experienced at least one price cut, the lowest level since Trulia started tracking price reductions in April, 2009. The total amount slashed from home prices also dropped from $28.1 Billion in November to $24.7 Billion in December, representing a 12% decrease. The average discount for price-reduced homes slightly increased to 11% off of the original listing price compared to 10% in the previous four months.

The post includes info for the Memphis market which shows that 35% of all listed homes have been reduced by an average of 9%.  We are still feeling the impact of the price bubble in a number of micro markets in Memphis where prices were hyper-inflated due to the high demand that created the strong seller’s market of the mid 2000’s.  Owners who bought at the historic top of the market may have to wait quite a while for the sales prices/values to rise to the mid-2000’s level.

Better news for the overall market is that median sales prices are increasing, with a significant move noted in the last half of 2009.  Of course, a lot of factors are involved here, but I think that is  a good sign.  Here is Trulia’s graph:l

Contrast Trulia’s graph with Zillow’s:

Totally different results.  Totally different median prices.  I could write a few thousand words on why these numbers are different, but why not let me or another real estate professional explain it to you as it impacts YOUR property and life situation.

• Author
• Recent Posts

Joe Spake

Realtor at InCity Realty

Joe Spake is a Real Estate Broker and Consultant, specializing in Midtown, Downtown, and East Memphis residential properties. His interests include architecture, community activism, music, photography and cooking. Get more great real estate information on Joe's Facebook Page. Call 901-870-3440 or Email Joe@spake.com

Latest posts by Joe Spake (see all)

• Thank You, Essential Workers - September 7, 2020
• Mid-Century Modern for sale – 346 Waring, Memphis, TN - July 9, 2013
• RE Buzz – Real Estate News Roundup – July 9, 2013 - July 9, 2013