January City/Neighborhood Price Reductions

Let’s take our monthly 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.

For those that are interested, I have uploaded the full data set in Excel format here (saved in Excel 97-2003 .xls format by request). In order to keep from overwhelming you with charts, I am leaving out the top ten cities/towns/neighborhoods with the least reduced-price listings from the post, but you can still see that chart in the downloaded file.

First up are the top ten cities with the most price-reduced listings:

boston-pr-cities-most_2009-01.png

Of the 201 cities/towns we ranked in the Boston Area this month, 161 (80%!) had price-reduced ratios of fifty percent or more. This is up from about 66% last month. Only Merrimac has consistently been in the top ten for the last three months.

Getting a little more granular, let’s look at the top ten Boston Area neighborhoods for price reductions:

boston-pr-neighborhoods-most_2009-01.png

Just 11 of the 59 neighborhoods we ranked in the Boston Area had a price-reduced ratio of fifty percent or more. East Boston and Logan Airport / Jeffries Point both made the top ten for three months in a row.

For home buyers, cities and neighborhoods that consistently remain near the top of the list for price reductions may be a good place to potentially hunt for bargains. Once a home has been on the market a while, many buyers tend to overlook it, even though a price reduction or two may have brought it into a more desirable price range.