Even though a number of homeowners around the country are offering deep discounts on their homes for sale, Boston ranked No. 1 in the nation as having the stingiest sellers with the smallest discounts on the market, according to real estate website Trulia.com.
The average percentage discount for a home in Boston listed on Trulia.com during first reductions is just 5 percent. Other “stingy” cities include Austin, Texas; Raleigh, N.C.; Colorado Springs, Colo.; and El Paso, Texas.
Detroit topped Trulia’s list of cities offering the deepest real estate discounts with an average of a 19 percent discount during the first reduction. Phoenix homes were found to be the most likely to have multiple price reductions (56 percent).
During the past year, the nation’s home sellers cut more than $24 billion in potential wealth from home listings on Trulia.com, according to a statement. On average, most sellers will reduce the list price after 79 days on the market, choosing to cut their original list price by 8 percent. Following a first reduction, 35 percent of these sellers will make a second reduction.
“Sellers who don’t cut their homes’ list prices deeply enough the first time face a long lag-time on the market and a high chance of needing to make a second cut, which can result in lowball offers from buyers,” said Tara-Nicholle Nelson, consumer educator for Trulia. “We also see a pattern of sellers making early, deep and multiple discounts in foreclosure hot spots such as Michigan, Florida, Maryland and California – a bad omen for the future of home values in these already depressed areas.”