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.
Only Caballo Hills made this month’s top ten neighborhoods with the most price-reduced listings and the fastest price reductions.
On average, neighborhoods where price reductions happen the fastest seem to be those with slightly lower prices, both in terms of overall median and per square foot. The average median sold price per square foot of the top ten neighborhoods with the fastest price reductions was $268, while the ten neighborhoods with the slowest price reductions had an average median sold price of $305 per square foot.
It is also interesting to note that the neighborhoods where price reductions happen the fastest also tend to have larger price reductions. Seven of the ten neighborhoods with the fastest price reductions had median total reductions of over 10%, while in the ten neighborhoods with the slowest price reductions, only three had median total reductions over 10%.
Sujit said:
Why should I care about this wickedly boring junk? I liked the personal touch of the old sweet digs. Numbers are good and all; they just don’t make interesting reading.
November 17, 2008 5:39 PM
mikeola said:
I guess I disagree with some of the data-haters … I feel that insightful data analysis can help me to make a more informed home-buying decision, and Redfin has access to the best dataset that one could hope for. It’s still important, of course, for Redfin to present *useful* analysis of data, which means giving some thought to what information home buyers (and sellers) could make use of but currently don’t have. For example, listing the neighborhoods with the fastest and slowest price reductions is simply a novelty, but listing the rate of price reduction for *all* neighborhoods could be useful.
November 18, 2008 11:16 AM
Tim Ellis said:
Thanks for the feedback. I’ll forward your thoughts to our data engineers to see what kind of data we can pull out that would be of more practical use.
November 18, 2008 11:34 AM
Heena said:
I saw something on trulia.com (i think it was trulia.com) with pictorial representation with color codes. Red color on map for highest price reduction , to yellow for moderate and cream/white for steady. I liked it. I like the above, but it does not give me all the neighbourhoods. Just a suggestion.
November 21, 2008 12:48 PM
AB12 said:
Posting this data is great but the spreadsheet is missing many of the important bay area cities and neighborhoods e.g. Pleasanton, Dublin, Los Gatos etc.
November 22, 2008 4:32 PM
44yo hipster said:
caballo hills?? arroyo viejo?? WTF! are these SF hoods or orange county. who makes these names up anyways.
November 23, 2008 12:19 AM
Abe said:
This is helpful data, but would love to see this data on a chart with allowing users to see the trendlines. If the data was really reliable and the charting tools were flexible and easy to user I would pay that service.
November 23, 2008 8:12 PM
San Mateo Home Sellers in Trouble said:
I miss the old bloggers too. It seems like this blog isn’t updated as often now whereas the old bloggers each had a section of the Bay Area that they talked about. The Bay Area isn’t just San Francisco…
November 25, 2008 5:30 PM