September City/Neighborhood Price Reductions

It’s been a while since we had 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.

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:

Of the 96 cities/towns we ranked in the Los Angeles area this month, just 9 had price-reduced ratios of fifty percent or more. The median price-reduced ratio was 31.1%.

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

Of the 172 neighborhoods we ranked this month, 14 had a price-reduced ratio of fifty percent or more. The median price-reduced ratio was 36.9%.

Download the full spreadsheet to check where your neighborhood came in.

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:

Of the 100 cities/towns we ranked in the Los Angeles area this month, just 8 had price-reduced ratios of fifty percent or more.

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

Of the 173 neighborhoods we ranked in the Los Angeles area this month, 31 had a price-reduced ratio of fifty percent or more. On average, the neighborhoods with more price reductions had somewhat higher median closed prices than those with fewer price reductions.

The general trend in Los Angeles looks to be heading slightly toward less price reductions, however every city and neighborhood is of course different. Some may be getting softer while others get tighter. Download the full spreadsheet to check where your neighborhood came in.

March 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:

Of the 106 cities/towns we ranked in Los Angeles County this month, 37 (35%) had price-reduced ratios of fifty percent or more. Westlake Village retained it’s #1 spot from last month. Six other cities also carried over from last month’s top ten.

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

Of the 165 neighborhoods we ranked in Los Angeles County this month, 70 (42%) had a price-reduced ratio of fifty percent or more. Beverly Center, South Park, West Adams, and West Long Beach all carried over from last month’s top ten neighborhoods. These are the neighborhoods where you might want to look for sellers that are more anxious to sell.

We’re still seeing a degree of consistency in which neighborhoods and cities have the most price reductions. Are sellers in these locations just not very good at finding the right market price in the first place, or are they so anxious to sell that they drop the price early and often? Either way, the regions with the really high percentage of reduced-price homes are probably a good place to go bargain-hunting.

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:

Of the 106 cities/towns we ranked in LA County this month, 41 (39%) had price-reduced ratios of fifty percent or more. Westlake Village, El Segundo, and Lomita continued to make a strong showing this month, carrying over from last month’s top ten.

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

Of the 165 neighborhoods we ranked in LA County this month, 85 (52%) had a price-reduced ratio of fifty percent or more. Baldwin Hills carried over its #1 spot in the top ten from last month, and West Adams made a repeat appearance as well.

There is definitely some consistency in the number of homes seeing price reductions month to month in the cities and neighborhoods around LA County. 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.

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:

Of the 112 cities/towns we ranked in Los Angeles County this month, 36 had price-reduced ratios of fifty percent or more. Signal Hill, Mayflower Village, La Verne, Westlake Village, West Hollywood, and El Segundo all made the top ten for the last three months.

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

78 of the 173 neighborhoods we ranked in Los Angeles County had a price-reduced ratio of fifty percent or more. Baldwin Hills and Sunpark both made the top ten for the third month 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.

City/Town/Neighborhood December Price Reduction Update

Let’s take 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. 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. 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:

Of the 41 cities/towns we ranked in the Los Angeles area this month, 20 had price-reduced ratios of fifty percent or more. Signal Hill, View Park-Windsor Hills, Mayflower Village, La Verne, Westlake Village, West Hollywood, and El Segundo all made the top ten last month and this month, with a consistently high volume of price reductions.

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

67 of the 181 neighborhoods we ranked in the Los Angeles area had a price-reduced ratio of fifty percent or more. Four neighborhoods—Baldwin Hills, Sunpark, South Torrance, and Californial Heights—all carried over from last month’s top ten as well.

Unfortunately, there do not appear to be any particularly strong patterns in the data that suggest where to look for sellers that might be more willing to negotiate a lower price. However, there does seem to be some consistency from month to month in the neighborhoods with lots of price reductions, so I recommend that bargain-hunters download the full data set and sift through it for their preferred neighborhoods.

Which Neighborhoods Have the Fastest Price Reductions?

Here’s a fun set of data. Redfin data engineers have dug deep into our market databases to find out which neighborhoods have the fastest price reductions.

For listings with more than one price drop, we calculated the time between each price drop. Then, for each neighborhood, we calculated the median average number of days between successive price drops for listings. Neighborhoods with fewer than 20 reduced-price listings were excluded from the calculation.

Here’s a chart of the top ten neighborhoods with the fastest price reductions:

For those readers that are interested to know which neighborhoods had the slowest price drops, feel free to download the full data set in Excel 2007 format.

Both Sunpark and Californial Heights made this month’s top ten neighborhoods with the most price-reduced listings and the fastest price reductions.

Statistically, no strong patterns are apparent in Los Angeles neighborhoods with more rapid price reductions. They’re equally likely to be expensive neighborhoods like Sunpark or relatively inexpensive like Poly High. However, geographically, it is interesting to note that four of the top ten neighborhoods with the fastest price reductions are clustered around the Long Beach area.

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:

Of the 112 cities/towns we ranked in LA County, only 3 had a price-reduced ratio of sixty percent or more, and only 17 came in with fifty percent or more. Most of the cities with lots of price reductions are fairly close to Los Angeles proper, where 44% of homes taken off the market had price reductions.

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

The high desert makes a strong showing in the least price-reduced list, with the Antelope Valley cities of Lancaster and Palmdale taking spots 3 and 8. Of course, it is also worth noting that homes in the high desert are already relatively cheap, with both cities showing a median sold price per square foot of under $100.

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

47 of the 186 neighborhoods we ranked in Los Angeles County had a price-reduced ratio of fifty percent or more. Most of the neighborhoods with lots of price reductions are between downtown and the beach, with the notable exception of the mountainside neighborhood of East Central, coming in at #10.

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

Condos in the New Downtown corner are selling (or leaving the market) with fewer price reductions than any part of the county by far, with the larger Downtown region only slightly behind. There’s also apparently still some fairly strong demand to live beachside in Santa Monica, as Ocean Park picks up the #2 spot.

There are no particularly noticable patterns in the data between neighborhoods with many price reductions and those with few. If you’re looking for a home, be sure to look around at nearby neighborhoods, where there may be significantly more price reductions.