November (belated) City/Neighborhood Price Reductions

Let’s have another 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 (as of 11.16.2009). 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:

Seattle-PR-Cities-Most_2009-11

Of the 136 cities/towns we ranked in the greater Seattle area this month, 91 had price-reduced ratios of fifty percent or more. The median price-reduced ratio was 52.3%.

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

Seattle-PR-Neighborhoods-Most_2009-11

Of the 104 neighborhoods we ranked this month, 44 had a price-reduced ratio of fifty percent or more. The median price-reduced ratio was 47.5%.

As I was processing this data I noticed something interesting. In Redfin’s eastern US markets (New York, Boston, DC, and Chicago), median price-reduced ratios ranged from 43% to 55%. In the California markets (San Diego, LA, Orange County, Sacramento, and SF Bay), the median price-reduced ratios were much lower, ranging from 24% in Sacramento to 34% in Orange County. There seemed to be something of an east-west divide in the data… Except that Seattle ended up with the second-highest median ratio, coming in at 52%. Here’s a visual of how Seattle sticks out from its nearest geographical neighbors.

Redfin-Markets-Cities-Median_2009-11

Not sure what it means, but I thought it was interesting.

Download the full spreadsheet to check where your neighborhood came in (assuming your neighborhood had enough sales to be ranked).

  • Skyiver

    In the spring & summer of 2007 Seattle area neighborhoods were touted as exempted from the bubble price declines due to strong employment at Boeing, Microsoft, and so on. Then the first round of layoffs hit. Who ever said, “Seattle may be late to the party but we are drinking as fast as we can to catch up” really hit the nail on the head. There was no valid reason for 2007 real estate price increases in the Puget Sound areas.

    In the long run I expect to see home prices match family incomes and annual salary adjustments over the past twenty years. Housing got way out ahead of the workforce income. The real estate market can’t live on investment buyers alone! Either family incomes adjust-up to home prices, or home prices adjust down to family incomes. This would result in overall price reductions back to 2002 – 2004 levels. Thank 2007 “irrational exuberance” for 2010 downward pricing pressure. It ant over yet!