HOME LISTINGS SEE MORE THAN TWO REDUCTIONS ON AVERAGE AS SELLERS SLASH...

HOME LISTINGS SEE MORE THAN TWO REDUCTIONS ON AVERAGE AS SELLERS SLASH PRICES, ACCORDING TO A ZIPREALTY REPORT

Price-Reduced Inventory Up 23 Percent In December Over 2009 With An Average of 2.15 Reductions Per Listing

EMERYVILLE, CA – January 12, 2011 – (RealEstateRama) — The number of price-reduced homes on the market this December remained at high levels compared to 2009, rising 23.4 percent according to a report surveying 26 US markets issued by national real estate brokerage, ZipRealty (www.ziprealty.com; NASDAQ: ZIPR).

The report also found that in the markets surveyed, the median list price in December was down 3.9 percent at $225,434, compared to November when the median list price was over $9,000 more at $234,484. California markets showed the largest month-to-month markdown, with the median list price in San Francisco dropping $35,195, followed by San Diego (median list price dropped $19,100) and Orange County ($17,100) as sellers slashed prices.

According to the report, both price-reduced inventory and total inventory decreased in November compared to October, but this December’s month-over-month decline was far more dramatic, with total inventory diving 5.3 percent and price-reduced inventory falling 7.7 percent. Both figures are still large increases over last year, with total inventory up 11.2 percent over December 2009 and reduced inventory up 23.4 percent.

“We continue to see high inventory levels and declining prices,” said John Oldham, Director of Marketing for ZipRealty. “Year-end inventory is declining but is still much higher than 2009 levels.”

The percentage of inventory that has experienced at least one reduction dropped for the first time in months, decreasing to 47.2 percent in December, compared to 48.4 percent in November and 48.3 percent in October of 2010.

“December is traditionally a slow month for home sales, and this could be a contributing factor to the decline over the previous two months in inventory as well as the drop in median list price,” Oldham added.

Highlights of ZipRealty’s December index include:

· The number of price-reduced homes on the market is up 23.4 percent over December of 2009

· Price-reduced homes fell faster than total inventory, with the number of price-reduced homes plunging 7.7 percent compared to a 5.2 percent decrease in overall inventory in December as compared to November

· The median list price dropped by 3.9 percent from November to $225,434, and the average percentage of price reduction amount to list price rose to 7.9 percent in December

· In 9 markets, more than half of homes for sale in December included at least one price reduction, down from 11 markets in November. Those markets are Phoenix, Jacksonville, Minneapolis/St. Paul, Tucson, Orlando, Chicago, Seattle, Baltimore, and Orange County

· Homes listed for sale in Florida markets were discounted by the largest percentage of original list price nationwide with Orlando leading (12.4 percent), followed by Miami/Ft. Lauderdale/Palm Beach (12.2 percent) and Jacksonville (12 percent)

· Markets with the largest median price reduction in absolute dollars were:

Market

Median Price Reduction

San Francisco

$34,000

Orange County, Calif.

$34,000

San Diego

$30,000

Miami/Ft. Lauderdale/Palm Beach

$25,000

Seattle

$25,000

 About the Report

ZipRealty compiled real estate listing and price reduction data from the MLS in 26 of the 35 major U.S. metropolitan areas where the real estate brokerage operates. The data cited within this report was pulled on January 1, 2011.

This report is intended to convey information on the general market conditions where ZipRealty operates, not on ZipRealty’s operating results. ZipRealty’s operating results may be materially different from the general trends shown in this report. Please do not draw any conclusions about ZipRealty’s operating results based on the information contained in this report but, instead, refer to ZipRealty’s earnings releases and periodic reports as they are made public.

About ZipRealty, Inc.

ZipRealty is a leading full-service residential real estate brokerage that uses an innovative combination of a comprehensive online presence, robust proprietary technology and knowledgeable local agents to offer its clients fast, responsive and transparent service. The Company’s award-winning, user-friendly website gives its users access to comprehensive local Multiple Listing Services home listings data, as well as other relevant market and neighborhood information and tools. The Company’s proprietary technology, including its agent platform and customer relationship tools, helps it to enhance customer service while increasing agent efficiency and reducing costs, allowing the Company to pass on significant savings to consumers as permitted by law. Founded in 1999, the company operates in 35 major markets in 22 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP.

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