February 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:

dc-pr-cities-most_2009-02.png

Of the 228 cities/towns we ranked in the DC area this month, 176 (77%) had price-reduced ratios of fifty percent or more. Only Beltsville carried over from last month’s top ten to this month.

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

dc-pr-neighborhoods-most_2009-02.png

Of the 130 neighborhoods we ranked in DC area this month, 60 (46%) had a price-reduced ratio of fifty percent or more. On the neighborhood level, slightly more of the top ten list remained the same, with Hampden taking the top spot two months in a row.

At the neighborhood level, there is definitely some consistency in the number of homes seeing price reductions. If finding a good deal on a home is important to you, these neighborhoods might be a good place to start, as higher ratios of reduced-price homes indicate sellers that need to sell and are willing to lower the price to do so.

  • Adam

    Most of the neighborhoods you listed as “DC Area” are actually in Baltimore where it would seem to be a very different market. How is Takoma Park or Petworth?

  • http://imgoph.blogspot.com/ IMGoph

    how are either hampden, lower northwood, fells point, roland park, or federal hill a “dc area neighborhood”?

    those are baltimore neighborhoods.

  • Jason

    DC is not Baltimore…I guess this chart is created by people that don’t live remotely close to DC or Baltimore

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  • http://www.dchousingprices.com Keith

    Just to make sure I understand the second chart: 63% of listings in Shaw reduced their list prices prior to sale or removal from the market. The analysis reflects actions taken by the seller prior to sale/removal and does not reflect the results of a price negotiation. Do I understand this correctly?