The asking prices of more than one-fourth of U.S. homes on the market as of Oct. 1, 2009 have been cut at least once, and the average discount is 10 percent, according to the latest Price Reduction Report by Trulia. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009.

Of the 10 states that had the highest percentage of homes with price reductions, five are located in the Northeast — Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. Among the states with the largest price cuts, seven are located in the West where price reductions average 13 percent.

Luxury homes — those listed at $2 million or higher — continue to be hit hard. The average price reduction on luxury homes is 14 percent. While they represent less than 2 percent of all current listings on Trulia, luxury homes account for 25 percent of the $28.4 billion in home price reductions, the survey finds.

Very interesting report and thanks to the folks at Trulia for gathering this data.  Here in the New River Valley we are seeing homes that are priced realistically from the start as to avoid price reductions.  There will always be overpriced homes but not from motivated Sellers - and the key word is MOTIVATED!