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 31 cities/towns we ranked in the San Diego area this month, just two had price-reduced ratios of fifty percent or more. The median price-reduced ratio was 30.2%.

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

Of the 68 neighborhoods we ranked this month, only one had a price-reduced ratio of fifty percent or more. The median price-reduced ratio was 28.0%.

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 38 cities/towns we ranked in the San Diego area this month, 12 had price-reduced ratios of fifty percent or more.

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

Of the 93 neighborhoods we ranked in the San Diego area this month, 12 had a price-reduced ratio of fifty percent or more. On average, the neighborhoods with more price reductions had noticably higher closed prices per square foot than those with fewer price reductions.

The general trend in San Diego 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 37 cities/towns we ranked in the San Diego area this month, 20 (54%) had price-reduced ratios of fifty percent or more. Seven cities on last month’s top ten carried over to this month’s top ten.

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

Of the 94 neighborhoods we ranked in the San Diego area this month, 34 (36%) had a price-reduced ratio of fifty percent or more. Last month’s top four neighborhoods all carried over into this month’s top ten, though only Mountain View and Lake stayed in the top four. 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 38 cities/towns we ranked in San Diego County this month, 22 (28%) had price-reduced ratios of fifty percent or more. Lake San Marcos, Coronado, and Valley Center continued to hold the top three spots from last month’s top ten to this month.

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

Of the 93 neighborhoods we ranked in San Diego County this month, 34 (37%) had a price-reduced ratio of fifty percent or more. Only Egger Highlands and Mountain View carried over in the top ten from last month.

There is definitely some consistency in the number of homes seeing price reductions month to month in the cities and neighborhoods around San Diego 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 37 cities/towns we ranked in San Diego County this month, 19 had price-reduced ratios of fifty percent or more. Encinitas and Coronado both made the top ten for the last three months.

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

40 of the 104 neighborhoods we ranked in San Diego County had a price-reduced ratio of fifty percent or more. Park West, Village, and Ocean Beach all 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 38 cities/towns we ranked in the San Diego area this month, 20 had price-reduced ratios of fifty percent or more. Encinitas, Poway, Ramona, Granite Hills, and Coronado 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 San Diego area neighborhoods for price reductions:

44 of the 106 neighborhoods we ranked in the San Diego area had a price-reduced ratio of fifty percent or more. Torrey Highlands, Park West, Village, Kensington, and Ocean Beach 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.

Ocean Beach, Grantville, Logan Heights, and Torrey Highlands all made this month’s top ten neighborhoods with the most price-reduced listings and the fastest price reductions.

While there seems to be a clear correlation between the quantity and speed of price reductions in and around San Diego, price-wise, there appeared to be no particular patterns common to neighborhoods with faster or slower price reductions. Neighborhoods with relatively high prices for the region were equally likely as those with low prices to experience fast price reductions.

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 38 cities/towns we ranked in San Diego County, only Coronado and Jamul had price-reduced ratios of over sixty percent, and a total of 13 came in with fifty percent or more. Although Coronado’s median sold price is well north of $1 million, sellers there were easily the most likely to reduce their price.

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

Only three cities in San Diego County had fewer than 40% price-reduced homes leaving the market. The relatively remote mountain town of Borrego Springs took the top spot with 30% price-reduced.

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

38 of the 111 neighborhoods we ranked in San Diego County had a price-reduced ratio of fifty percent or more. Interestingly, three of the top ten neighborhoods for price reductions are right on the beach. Not sure what to make of that.

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

Neighborhoods with fewer price reductions tend to be either close to the downtown core or a little bit north of it. None of the top ten neighborhoods for the least price reductions were south or east of downtown. Even the neighborhoods with fewer price reductions saw nearly one third of sellers reducing prices to get homes sold.