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 42 cities/towns we ranked in Orange County, only Las Flores had a price-reduced ratio of over sixty percent, while 15 came in with fifty percent or more. Three cities neighboring the military facilities—Rossmoor, Los Alamitos, and Seal Beach—made the top ten.

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

No city in Orange County has had fewer than 40% of homes with price reductions in the last 90 days. Compare this to neighboring Los Angeles County, where 30 cities had fewer than 40% of homees with price reductions.

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

19 of the 53 neighborhoods we ranked in Orange County had a price-reduced ratio of fifty percent or more. Sellers in Huntington Beach (which as a whole had 53% of homes that were price-reduced—#10 on the Most Reduced list above) are apprently quite motivated, as it is home to five of the top ten neighborhoods for price reductions (Huntington Harbour, Holly-Seacliff, Beach Boulevard, Old Town Huntington Beach, and Downtown Huntington Beach).

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

The hilly Irvine neighborhood of Turtle Ridge takes the top spot, but even right next door to UC Irvine a quarter of sellers are reducing their prices to move their homes.