However, the national average of 33.6 percent hides huge local differences. In January 2013, the share of homes with price discounts ranges from just 15 percent in Oakland, Calif., to 48 percent in Springfield, Mass. Among markets with the fewest reductions today, Miami and Fort Lauderdale stand out as the two locales that also had relatively few reductions one year ago.
|(Photo credit: Wikipedia)|
What explains why some metros have few markdowns, while others have many? Two factors stand out among markets with fewer reductions: bigger price gains and a lower vacancy rate. In metros where prices are rising, asking prices are less likely to start out too low: Oakland, Las Vegas, and Miami all had big price gains in 2012, according to the December Trulia Price Monitor. In metros with low vacancy rates, buyers are competing with each other for the few available homes on the market, so sellers don't need to lower prices to attract buyers: Ventura County, Calif., for instance, had only a 0.9 percent year-over-year increase in prices in December 2012, but has among the lowest vacancy rates in the country, which means sellers don't need to drop prices to attract interest. Overall, a decline in price reductions is yet another sign that the housing market is tightening. Take a closer look at the 10 markets where price reductions are everywhere.
Gallery: Cities With the Best Discounts on Homes
By Jed Kolko, Trulia Chief Economist
Taken from: http://realestate.aol.com/blog/2013/01/16/best-housing-markets-discounts/