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Home prices continue to be slashed by sellers

California home sellers slashed prices considerably in January.

California home sellers slashed prices considerably in January.

Despite an increase in sales for a majority of metropolitan areas recently, homes aren't being moved into at a pace that sits well with sellers. As a result, the market continues to be saturated with discounted home prices.

According to ZipRealty's monthly price reduction report, the number of homes with sellers offering to cut their initial asking price is up nearly 18 percent.

"In more than half of the surveyed markets, sellers are averaging at least two reductions in price," said John Oldham, director of marketing for ZipRealty. "As sellers face the pressure of more buying options, they seem to be discounting to attract buyers resulting in list prices being cut for over 46 percent of the homes."

While the report found price reductions across the country, the largest price reductions were largely confined to California. In San Francisco, Orange County and San Diego, home sellers slashed prices by an average of $32,500, $31,000 and $29,100, respectively.

There's still plenty of expensive homes to be bought in California, though, and they're apparently selling quickly. According to DataQuick Information Systems, sales activity for homes costing $1 million or more increased 21 percent last quarter compared to the fourth quarter of 2009.