June 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. The downloadable Excel file also includes charts showing the top ten cities/towns/neighborhoods with the least reduced-price listings.

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

boston-pr-cities-most_2009-06

Of the 161 cities/towns we ranked in the Boston area this month, 89 had price-reduced ratios of fifty percent or more.

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

boston-pr-neighborhoods-most_2009-06

Of the 56 neighborhoods we ranked in the Boston area this month, 9 had a price-reduced ratio of fifty percent or more. On average, the neighborhoods with more price reductions had lower closed prices per square foot.

The general trend in Boston looks to be heading slightly toward less price reductions, however every city and neighborhood is of course different.

  • http://Fosyer-Healey.com Rick Cuddy

    Yes, the market has had many pricing adjustment over the past couple of years. The panic right now seems to be with investors that don’t want to be left out in the cold. I am starting to flip properties that the investors haven’t even taken title of yet… today I called one of my investors that has bought many fixer-uppers over
    The last 6 months, and gave him an offer to sell his next purchase at the closing (double closing) for a 25% mark up. I even told the new buyer’s agent the new buyer would have to pay my 4% Seller’s Broker Commission.

    There is a very active market out there; you just need to work with an informed agent that is willing to speak for you and get you the best deal. You can be a Buyer or a Seller there is money to be made right now. Stand strong get the most for your money.

  • Jake

    Sorry for the silly question – in the accompanying spreadsheet, what does “MOS” mean?

  • http://seattle.redfin.com/blog/author/timothy.ellis/ Tim Ellis

    MOS = “Months of Supply”

    It’s a measure of market activity, which is calculated very simply by dividing the total number of active listings on the market (usually a snapshot at the end of the month) by the total number of pending sales in a month.

    Generally, above 6 MOS is considered a “buyer’s market,” while below 6 MOS is a “seller’s market.” This may change however depending on how your local listing service is defining “active listings” and “pending sales.”