According to data from real estate website Trulia.com, eighteen percent of homes for sale in Miami saw their prices slashed in August by an average of 12 percent.
On the list of 50 cities, Miami homes actually ranked fairly low at Number 49 with $123.8 million in price reductions. Number 50 was Detroit, which had 16 percent of homeowners reducing prices, though they did cut deeper, at 25 percent.
Nationwide, the average national price reduction was 10 percent with 26 percent of homeowners cutting prices accounting for a total reduction of more than $29 billion.
Despite the increase of price reduction figures to historic levels, according to Trulia, 24 of the 50 largest U.S. cities held steady or dropped, compared with data from the previous month.
Trulia co-founder and CEO Pete Flint said in a news release, "On the surface, the latest price reduction data carries with it conflicting messages. Nationwide, sellers continue to slash prices, and this is a worrisome trend. However, we're seeing gradual improvement in many U.S. cities – several for consecutive months. What this shows us is that, while we're in for a long climb to bring stability back to the housing market and while it's going to take time, that climb appears to at least be under way in some parts of the country."
On Wednesday, the Mortgage Bankers Association reported that, mortgage loan application volume fell 8.9 percent from the previous week on a seasonally adjusted basis, for the week ended September 10. Despite the fact that mortgage rates fell, the number of refinancings fell 10.8 percent.
Average Interest Rates
- Average Interest Rate - 30-year, fixed-rate mortgages decreased to 4.47% from 4.5%.
- Average Interest Rate - 15-year, fixed-rate mortgages decreased to 3.96% from 4%.
- Average Interest Rate - one-year, adjustable rate mortgages decreased to 6.89% from 7%.
Contributed by MLR Realty
