U.S. homeowners slashed their asking prices for a third straight month in August, according real estate website Trulia.com. The price reductions hit the highest levels of 2010.

With the economic recovery marred by high unemployment, demand has been soft, despite the low housing prices and mortgage rates. Meanwhile, the housing market is saturated with oversupply and foreclosed homes. So sellers are attempting to attract buyers with lower prices, especially after the homebuyer tax credit ended in April.

Price were reduced on 26% of home listings currently on the market in the U.S. and accounted for a total reduction of more than $29 billion nationwide, Trulia.com said. The average reduction remains at 10% or $33,892.

"On the surface, the latest price reduction data carries with it conflicting messages," said Trulia CEO Pete Flint in a statement. "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 underway in some parts of the country."

While the price reduction figures actually increased to historic levels, 24 of the 50 largest U.S. cities held steady or dropped, compared with data from the previous month. In August, only 16 cities reported positive or unchanged price reduction data.

In Minneapolis, 43% of listings reduced prices -- an all-time high -- for a total value slashed off homes of $34.8 million. Milwaukee also crossed the 40%. Detroit had the least price reductions with 20% of listings cutting prices. In California, one of the hardest hit areas, five cities show improvement when compared with a year ago.

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donovansdanes

Sellers do have a few options available, in so far as not taking such a huge financial loss on their home. Depending on your situation. If you've owned your home for more then 10 years, and have at least a 50% or better ratio of equity in the house. You may want to consider doing a refinance into an interest only loan. And think about renting your home out, until the market gets a little better, and your homes value starts to increase. Many people who can't qualify to purchase a home for what ever reason. Can in many cases still afford to pay, and are willing to pay a good chunk of money every month for rent. Meanwhile, the homeowner can either do a long term tenant lease, lease with option to buy, or a month to month lease, keeping the house on the market With a 30 day tenant move out/vacate clause. If the house should sell. But the worst thing for a seller to do is to panic, and take a huge financial loss on the sale of their home. Explore all and every possible option you as a seller may have available to you, in order to keep your financial losses to a minimum. When selling your home. Don't contribute to a buyers closing costs. If a buyer needs help with closing costs. Good chance the buyer doesn't have all the monies they need in the first place. If your Real Estate agent presents you with a low ball offer. Then its time to lower the agents commission percentage rate. Make that a contingency, as part of accepting a low ball offer. That's If you should decide to accept that much lower sale price your agent may present to you.

September 26 2010 at 9:47 AM Report abuse +1 rate up rate down Reply
BULLMAN

Doesnt make any difference-nothing will ever be the same. Too many houses and NOT enough money.

September 16 2010 at 12:57 AM Report abuse rate up rate down Reply
sbhome1020

The Obama effect.

September 15 2010 at 10:05 PM Report abuse rate up rate down Reply
ralpsimmons6

How low is too low??? Sales Tax Hotel Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Car Rental Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service FeeTax Gasoline Tax (currently 44.75 cents per gallon) Utility Taxes Vehicle License Registration Tax Telephone Recurring and Nonrecurring Charges Tax Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. We also were A Common Law Country! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action. Here is my way to get your loot back. Just google EASY STOCK CASH and click the first link. Once you get there, go right to the PENNY STOCK page to see what the rich don't want you to know.

September 15 2010 at 9:32 PM Report abuse rate up rate down Reply
wiser45

Well, before we all start celebrating, let's take a look!!! They have raised the bar on credit scores. What does that mean? Well, what once was an open dream to most middle and lower class income families has now been ruined by scheming underwriters who wanted more money. They allowed people who never should have been able to buy a $100,000 home and kept doing it. Now for those whom have never purchased home (and can actually afford it), have to fight to get one! So thank you to all those who have credit card debt out the wahzoo and bought your over-priced homes! The rest of us are now paying the price for you. As for the lowered price on houses, good luck selling!!! Until they change the new FHA guidelines, you'll be seeing more prices drop!! Write to your Senator!!!!

September 15 2010 at 8:11 PM Report abuse +2 rate up rate down Reply
1 reply to wiser45's comment
mcgowann

Hang in there, wiser45. Right now, lenders are between a rock and a hard place. Actually it's between the government and the government. You have Obama and Congress wanting banks to loan money. The new banking regulations have required banks to double the amount of money they have in reserves. If banks start loaning money right now, they won't have enough in reserves. If they don't have enough in reserves, the government can shut them down and sell them to some other bank. Once the banks get their reserves built up, they'll start lending again and interest rates won't be going up quickly. Just save your money in the meantime. The more you put down, the better your interest rate and the lower your payments.

September 15 2010 at 9:50 PM Report abuse +1 rate up rate down Reply
Terry

I love the fact that we are dropping the prices of homes but we are seeing things getting better in certain areas of the country. This sounds like an Obummer statement. Things are headed in the right direction but the job loses and healthcare are doing good. YEA RIGHT !!!!!!!!!

September 15 2010 at 7:01 PM Report abuse rate up rate down Reply
bailoutsos

""Nationwide, sellers continue to slash prices and this is a worrisome trend." ----- Odd. CNN Money just had an article that home prices in California were going up.

September 15 2010 at 6:59 PM Report abuse rate up rate down Reply
wescar353

When times were good, couples both worked and bought the American Dream - their own home. Today, both have lost their jobs and cannot afford their house. The mortgage company sends letters and makes phone calls badgering them for back house payments. They are trying to sell, have dropped price 4 different times. Beautiful $275,000 house now priced at $130,000. No lookers can qualify. They told mortgage company to go ahead and foreclose or repossess. Mortgage Co. DON'T want the house back. Already have to many. Won't work with couple to lower interest rate or drop payments. Couple living in house for free. Can't get blood out of a turnip.

September 15 2010 at 6:06 PM Report abuse +11 rate up rate down Reply
brian1russ

When you see all of the new hoops that a prospective buyer must go through to get a Mortgage, you can see why sellers feel the need to drop the price. People with 30%, 40%, or even 50% down must document where every dime they have comes from. Therefore, sellers need to go after "Cash" buyers at a lower price. Don't blame this on Politicians (either party) blame it on the unscupulous loan practices from all of the banks in the past.

September 15 2010 at 3:33 PM Report abuse +6 rate up rate down Reply
1 reply to brian1russ's comment
wfreeberg

These so called new hoops are nothing more than bringing back the qualifiers that were in effect in the 80's. At that time one had to provide copies of W2's bank statements, credit reports, and proof of where the down payment was coming from. And all that was based on Fixed Rate Mortgages around 14 - 16% and adjustables at 18%. Most of you don't know how good one has it to buy a home today.

September 15 2010 at 5:30 PM Report abuse +5 rate up rate down Reply
mhcontain

What do you expect with the $7.00 per hour Wal-mart jobs?

September 15 2010 at 2:49 PM Report abuse +2 rate up rate down Reply
1 reply to mhcontain's comment
dakotaman2003

i did not know wal-mart payed only 7.00 a hour i worked for them and i started at 9.00 a hour 3 years ago

September 15 2010 at 6:03 PM Report abuse +1 rate up rate down Reply