Homes on the market in the Boston area saw a large surge in price reductions in the past month, according to real estate website Trulia.com.
As of May 1, 31 percent of homes listed on Trulia in the Boston area had a price drop at least once. The average price reduction was 6 percent, Trulia reported.
The Hub ranks ninth in the country. Minneapolis led the way in May with 40 percent of its home listings experiencing at least one price cut.
Twenty-two percent of listings on the market nationwide as of May 1 experienced at least one price reduction. This represents a 10 percent increase from the previous month.
The total dollar amount slashed from home prices was $25 billion, and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price.
"With more than a year of the federal government’s involvement, we are now re-entering the free market system. As we readjust to the free market, we expect to hit turbulence in some markets," said Pete Flint, Trulia co-founder and CEO. "We won’t know the true severity of the tax credit expiration until the conclusion of the peak home buying season in the summer months. Only then will we have a better sense if the U.S. housing market can stand on its own two feet."
Cities in the Great Plains experienced some of the largest surges in price reductions compared to the previous month with Omaha increasing by 62 percent and Tulsa by 27 percent. Southern California wasn’t spared either from large spikes in price reductions: San Diego increased by 39 percent and Long Beach by 22 percent.





