Trulia reports price changes on listed homes.  Of 50 large city markets tracked by Trulia 19% of listings showed price reductions as of March 1 with the average reduction at 11% of list price.

Milwaukee had the highest percent of listed homes with price reductions at 33%, while Fresno and San Jose, CA had the lowest number of price-reduced listings at 12%. The biggest month-to-month drop in price reductions was experienced in Charlotte, NC, where in January 29% of homes had price drops and in February 21% experienced reductions.

Home price reductions are expected to surge again with the approach of the final home tax credit.

There were much larger discounts experienced in the luxury home market where the average reduction is 14%, and can be as high as 35% in some markets.  Many of the previously wealthy who have become unemployed have been surviving on savings, but are now becoming more anxious to move on with their lives as the economy continues to falter or they are finding new jobs at much reduced salaries or in other parts of the country. More of these formerly high income homeowners are becoming highly motivated sellers.