June 28, 2010
Sellers keep prices up in hopes of summer sales
Over 20 percent of houses currently on the market have been reduced in price at least once, according to Trulia.
Homes in the West experienced the biggest drop in price compared to last year, says Trulia. Just under 70 percent of residential properties in Las Vegas were reduced by 30 percent.
House values in the Midwest and South are experiencing the exact opposite. There has been a 55 percent increase in price reductions in Kansas City for 20 percent of the homes on the market compared to 2009.
Strong numbers were reported in the spring for the housing industry, but some experts are unsure whether that trend will be maintained throughout the warm months.
"The spring sales were fueled by the expiration of the tax credit and my concern is that this heavy activity is providing sellers with a false state of optimism," said co-founder and CEO of Trulia Pete Flint. "For the unforeseen future, buyers will continue to have the negotiating power and I expect we will see sellers get aggressive via price cuts throughout the summer."
Even with some fluctuation in home prices, sales are remaining strong. National Association of Realtors chief economist Lawrence Yun said that he predicts there will be one more month of heightened home sales.
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