Fewer price reductions on homes in March

Fewer homes had their prices reduced this month than last, real estate website Trulia.com reported Tuesday.

According to Trulia, 19 percent of homes on the market on March 1 had their prices reduced at least once. On February 1, 21 percent of homes had received a discount.

The news does not necessarily mean that sellers are becoming stingier: Rather, Trulia chief executive Pete Flint said, the reduction in price discounts is a symptom of depressed home demand. Without many buyers in the market for a new home, Flint suggested, sellers have little motivation to discount their homes significantly.

"There has been a lower sense of urgency to ‘buy now’," Flint noted.

Indeed, the National Association of Realtors reported last week that pending home sales declined between January and February – a sign that buyers are not opting to jump into the residential real estate market with great fervor.

Flint said that he expects demand to increase as the homebuyer tax credit’s expiration nears in April. As demand rises, prices – and discounts – may rise, as well.

Popularity: 1% [?]