A recent report has revealed that more home sellers cut asking prices last month as the growing unemployment rate continues to drag down home values in many parts of the country. According to real estate website Trulia.com, owners slashed prices on about 25% of properties listed for sale in July. Data showed that sellers in the 50 largest cities reduced prices by $30.1 billion, up from $27.3 billion in June.

The San Francisco-based website blamed the weak job market for the continuous price cuts as the country’s unemployment rate inched closer to 10%. It added that despite low mortgage rates and real estate prices, many potential buyers are still reluctant to make a home purchase because of wage cuts, restrictive lending practices, and declining home values.

“With one out of every four homes experiencing at least one price reduction, sellers are feeling no relief this summer in a market climate of fewer qualified buyers and widespread uncertainty about the job market,” Trulia chief executive officer Pete Flint said. “If buyers are unqualified to buy, it doesn’t matter how low interest rates are or how discounted a home is.”

The biggest number of sellers who resorted to price cuts was recorded in Minneapolis, with 42% of listings in the Minnesotan city receiving at least one price reduction. Trulia said growing inventory and mounting competition forced sellers in the “City of Lakes” to provide buyers with an average discount of 9%, or a total of $33.8 million in reductions.

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