Which Cities, Towns, and Neighborhoods have the most price reductions?

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:

seattle-pr-cities-most.png

Of the 146 cities/towns we ranked in the Seattle / NW Washington area, 16 had price-reduced ratios of over sixty percent, and 79 (just over half) came in with fifty percent or more. South King County had the strongest showing on the most-reduced list, taking four of the top ten spots.

Here are the top ten cities with the least price-reduced listings:

seattle-pr-cities-least.png

Interestingly, the cities with the fewest price reductions are quite a ways out of town. Way up north in Blaine, over the mountains in Moses Lake, east on the peninsula in Port Townsend, and south in Long Beach.

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

seattle-pr-neighborhoods-most.png

50 of the 144 neighborhoods we ranked in the Seattle area had a price-reduced ratio of fifty percent or more. The top two neighborhoods couldn’t be much more different from each other, with relatively-modestly-priced Northwest Everett and the suburban eastside Somerset both seeing over 70% of homes reduce prices before coming off the market.

Lastly, let’s take a look at which neighborhoods had the least price-reduced listings taken off the market:

seattle-pr-neighborhoods-least.png

Wow, what is going on in north Everett? We’ve got Northwest Everett topping the list of the most price reductions at 74%, then right next door in the Delta neighborhood, only 33% of homes saw price reductions. Weird.

Outside of Delta and Happy Valley way up in Whatcom, all the remaining neighborhoods on the top ten least reduced list are in King County, with many of the strongest neighborhoods (not surprisingly) clustered right around downtown Seattle.

  • Gene

    Good start for the analytics. How about downloadable or full lists for areas that didn’t make the top/bottom of the list?

    Also, cleaner graphs would probably be easier to read – less 3D, more clarity. I’d also fade the RedFin logo behind the graphs a bit more. A watermark is fine, but the current version is distracting and makes some of the graphs more difficult to read.

    Thanks!

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

    Thanks for the feedback, Gene. I’ll see about tweaking the charts in future posts. And I would like to provide the full spreadsheets for download, we just have to work out the technical aspect of it.

  • Marce

    Welcome aboard, Tim. I’ve been a reader of yours for some time, and I’m looking forward to your contributions on Sweet Digs.

  • http://www.glockners.net Greg Glockner

    Tim: Welcome to Redfin! This is interesting stuff – it also would be interesting to see the amount of reductions. Color-coded maps could also be interesting. Thanks for keeping us pumped with useful data!

  • WaileaKid

    Thanks you redfin for bringing in Tim to write this blog. Good post Tim. One thing would be interseting to see: how does the price reduction and consuption rate is related. Do the areas with least price reductions are also the areas with lowest months of supply?

  • http://overpopulation-softwarengineer.blogspot.com/ Softwarengineer

    GREETINGS TIM:

    Your charts remind me of the Seattle Bubble ones you posted about a month or two ago.

    I blogged then and I’ll blog now, “Buy Now Before the Price Collapses”….lol

  • mike

    East Queen Anne??

    Happy Valley is not a “Seattle” area …

  • Richard

    Hi Tim, Would like more info on the Bellingham
    Fairhaven area. Whats going on around there and
    why.
    Thanks, Richard

  • http://www.onpointnorthwest.com Chris Schreiber

    Good analysis of the stats but it would be great to have some more insight into the derivation of the stats. In other words, do these list/sale ratios take into consideration listings of one property by multiple agents over extended periods, or just the most recent list compared to the actual closed sale price?
    The chart mentioned “before being removed from the market”? Does that mean that the ratio reflects the original list price versus the final list price when the proeprty was pulled off the market? If so that might be part of the reason for the double digit differences. Over here (North Idaho) you’ll see folks “test the market” and often list for high prices on the off chance someone comes along and pays more that it’s worth … also known as the “greater fool theroy”. I wonder if your stats are reflecting that too?

    Just my thoughts …

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  • http://www.davidlosh.com David Losh

    Goodness, let’s take a look at this web site shall we?

  • http://www.mikestewart.ca Mike Stewart, Downtown Vancouver Realtor

    Great data! Its interesting to compare the real estate markets of Vancouver, BC and Seattle. I am Vancouver Realtor and our market is starting to see prices coming down.

  • http://www.FixerFixer.com David Losh

    Good Morning!

    Tim I just noticed that radfun has imprinted your graphs with the radfun logo. If they purchased the graphs that would be OK, but I have a feeling they just stamped them as thier own property. Maybe you chose to stamp them.

    The point is that in my opinion your over all set of charts and graphs along with a time line are valuable. Before you sign away rights you should check on trademark and patents.

    Either way, the very fact your name is here is extremely valuable to radfun, they should pay. $200K should be the signing bonus.

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