Today Redfin is launching the new Sweet Digs, Analytical Edition. We’re proud to introduce Tim Ellis as the curator of this new effort. Tim will bring the same independent, data-driven perspective to Sweet Digs that first established him as a pre-eminent real estate blogger, but with pricing data that only a broker—and sometimes only Redfin—can access. He will be joined by other bloggers providing real-time insights on how contracts are being negotiated in neighborhoods around the area.
Sweet Digs is still a work in progress so if you have ideas about the types of posts you’d like to see — or if you’d like to contribute an analytical post of your own — just drop me (glenn at redfin dot com) or Tim (the_tim at thatchmound dot com) a line or leave a comment below. Thanks for all your support, and we look forward to hearing from you!
Regards, Glenn Kelman, CEO Redfin
I’d like to thank Glenn and the good people at Redfin for giving me the opportunity to delve into real estate data and share insights with readers from around the country. To kick things off, let’s take a look at which cities and towns have the most price reductions.
The following charts show the percent of MLS, FSBO or REO listings that were price-reduced at some point before leaving the market (either sold or removed unsold from the market) in the past 90 days. Cities/towns or neighborhoods in which the number of homes taken off the market was too small to provide believable estimates are excluded from ranking.
First up are the top ten cities with the most price-reduced listings:
Of the 204 cities/towns we ranked in the Boston area, 13 had a price-reduced ratio of over sixty percent, while 79 had fifty percent or more. Outlying Merrimac had the largest percent of homes taken off the market that experienced price reductions. Interestingly, two of the cities on the top ten list—Lincoln and Wayland—are actually fairly close to the city center. For comparison, 43% of homes taken off the market in Boston proper had price reductions.
Here are the top ten cities with the least price-reduced listings:
On average, the cities with the least price-reduced listings are actually further away from Boston than those with the most price-reduced listings.
Getting a little more granular, let’s look at the top ten Boston-area neighborhoods for price reductions:
Only one of the top ten neighborhoods for price-reductions is outside Suffolk County—Indian Lake East Not too surprisingly, homes near the airport are the most likely to have had a price drop. Of the 65 neighborhoods we ranked in Redfin’s Boston service area, 16 had a price-reduced ratio of over fifty percent.
Lastly, let’s take a look at which neighborhoods had the least price-reduced listings taken off the market:
Half of the top ten neighborhoods with the least price-reduced listings were outside of Suffolk County.
On average, it seems that sellers in closer-in cities, towns, and neighborhoods in the Boston area are much more likely to reduce their price than sellers in outlying areas. If the present economic downturn continues to deepen, it will be interesting to see if this trend continues.