City/Town/Neighborhood December Price Reduction Update

Note: I believe we have finally worked out the kinks in getting some more in-depth data from the various Bay Area MLSes, and we are currently working on posts for sale-to-list ratio and inventory trend data that will be coming soon. In the mean time, here’s an update for our neighborhood price reduction data.

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 132 cities/towns we ranked in the Bay Area this month, 48 had price-reduced ratios of fifty percent or more. Aptos held the top spot again, while East Foothills, Seven Trees, Alamo, Danville, Gilroy, Rio del Mar 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 Bay Area neighborhoods for price reductions:

47 of the 143 neighborhoods we ranked in the Bay Area had a price-reduced ratio of fifty percent or more. Only Millsmont and last month’s #1 The Village carried over from last month’s top ten as well.

There is a slight tendency for neighborhoods and cities/towns with lower listing prices (per square foot) to have a larger share of reduced-price listings. If you’re looking for sellers that might be more willing to negotiate a lower price, these would be the places to look.