Redfin Corp Stock Price, News & Analysis

Redfin (NASDAQ: RDFN) reports that all-cash home purchases in the U.S. declined to 32.6% in 2024, down from 35.1% in 2023, marking a three-year low. Despite the decrease, the share remains higher than pre-pandemic levels of 25-30%.

Florida metros dominated cash purchases, with West Palm Beach leading at 49.6%, followed by Jacksonville (40.6%), Cleveland (40%), Fort Lauderdale (38.9%), and Miami (38.1%). Conversely, expensive coastal metros showed the lowest cash-buyer shares, with San Jose at 18.1%.

The decline is partly attributed to reduced investor activity. According to Redfin Senior Economist Sheharyar Bokhari, cash purchases remain elevated due to wealthy Americans' continued participation in the expensive housing market. The total number of all-cash home sales reached its lowest level in at least a decade as overall home sales hit historic lows.

Redfin (NASDAQ: RDFN) reports that housing supply has reached its highest level since 2020, while demand has dropped to pandemic-era lows. Pending home sales fell 4.2% month-over-month and 6.3% year-over-year in January, marking the largest decline since August 2023. Meanwhile, active listings rose 12.9% year-over-year.

The typical home spent 56 days on the market, the longest for any January since 2020. The median home sale price increased 4.1% to $418,581. Higher mortgage rates (6.96% in January), economic uncertainty, and increased deal cancellations (14.3% of contracts) are contributing to decreased demand. Supply growth is attributed to the fading mortgage rate lock-in effect and slower sales.

Regional variations show significant differences, with pending sales rising in coastal markets like San Jose and Seattle while declining in pandemic boomtowns like Miami and Austin.

Redfin's latest report indicates a significant increase in housing supply, with new listings up by 7.4% year-over-year, reaching the highest level since early 2022. Conversely, pending sales have decreased by 6%, largely due to high home prices and mortgage rates. Nationwide, there are now five months of for-sale supply, the most since early 2019. The typical home took 57 days to go under contract, the longest period since March 2020. Median home-sale prices have risen by 4.3%, and the average 30-year fixed mortgage rate is 6.89%, down slightly from the previous week but still significantly higher than pre-pandemic levels.

Redfin's Homebuyer Demand Index has shown a slight uptick from its six-month low, suggesting potential increases in buyer activity. However, uncertainty among buyers and sellers, particularly in areas with many federal employees, persists due to return-to-office mandates and job security concerns. In Los Angeles, pending sales have risen by 3.4% after wildfires displaced many residents.

Key metrics include a median sale price of $375,750, a median asking price of $409,563, and a median monthly mortgage payment of $2,753. Active listings have increased by 11.1%, while the share of homes sold above list price has decreased to 20.9%.

Redfin (NASDAQ: RDFN) reports that U.S. homebuyers are experiencing the largest discounts in nearly two years, with typical homes selling for 1.8% below asking price. Properties are taking 56 days to go under contract, the longest period in almost five years, with 56% of listings remaining on the market for 60+ days.

The slowdown is primarily attributed to high housing costs, with average 30-year mortgage rates at 6.96% in January and median home prices up 4% year over year. Florida markets show the largest discounts, with homes in West Palm Beach, Fort Lauderdale, and Miami selling around 5% below asking price, influenced by increasing natural disaster risks and rising insurance costs.

Only seven of the 50 most populous U.S. metros see homes selling above asking price, led by San Jose at 3% above list price.

Redfin (NASDAQ: RDFN) has scheduled its fourth-quarter 2024 earnings release for Thursday, February 27, 2025, after market close. The company will host a live webcast conference call to discuss the results at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time, accessible through Redfin's Investor Relations website.

Redfin operates as a technology-powered real estate company providing brokerage, rentals, lending, and title insurance services. The company runs the #1 real estate brokerage site in the country and has helped customers save over $1.6 billion in commissions since its 2006 launch. Currently, Redfin serves approximately 100 markets across the U.S. and Canada with a workforce of over 4,000 employees.

Redfin's most-viewed home listings in January 2024 were predominantly located in tech hubs, with 7 out of 10 properties in the Bay Area and 2 in Seattle's eastside suburbs. Nine of these listings were priced above $1 million, with five exceeding $2 million, significantly higher than the U.S. median home-sale price of $430,000.

The top viewed properties included homes in San Jose ($1.49M), Dublin ($1.29M), Fremont ($544K), Bellevue ($1.05M), and Pacific Palisades ($24.5M). Notable listings in tech-centric areas included properties in Los Altos near Tesla's offices and Palo Alto near Meta's headquarters.

According to Redfin Premier agent Josh Felder, move-in ready homes between San Francisco and San Jose priced $1-3 million are selling quickly, especially in good school districts. The high viewing numbers are attributed to inventory scarcity, return-to-office mandates from major tech employers like Amazon, and the regions' high-income demographics.

Redfin (NASDAQ: RDFN) reports that the U.S. median asking rent remained relatively stable at $1,599 in January, showing a minimal year-over-year decrease of 0.1% and a month-over-month increase of 0.5%. The median asking rent per square foot decreased 1.5% year-over-year to $1.80.

Austin, TX experienced the largest decline among major metros, with asking rents dropping 16% year-over-year to $1,399, now $400 below its August 2023 peak. Other significant decreases were seen in Tampa (-8.2%) and Salt Lake City (-6.5%). Conversely, Cincinnati led rent increases at 15%, followed by Providence (13.4%).

Across all apartment types, 3+ bedroom units saw the largest decline (-1.7% to $1,966). In Los Angeles, while overall rents remained flat at $2,780, 3+ bedroom apartments saw a 3.9% increase to $3,950, potentially influenced by recent wildfires and displaced families.

Redfin (RDFN) reports that 17.2% of U.S. homeowners with mortgages now have an interest rate of 6% or higher, marking the highest percentage since 2016. This represents a significant increase from 12.3% in Q3 2023. The analysis shows that 82.8% of mortgaged homeowners still have rates below 6%, with specific breakdowns showing 73.3% below 5%, 55.2% below 4%, and 21.3% below 3%.

The 'lock-in effect,' where homeowners resist selling due to having lower mortgage rates than current market rates, is gradually easing. This shift is attributed to people accepting that rates won't return to pandemic lows, increased home equity enabling moves despite higher rates, and life events necessitating relocations. As a result, both new listings and active listings are higher than the previous year, though some of this increase is due to properties remaining on the market longer.

Redfin (NASDAQ: RDFN) reports a significant 7.9% year-over-year increase in new U.S. home listings during the four weeks ending February 2, marking the largest increase since late last year. However, pending sales declined 8.1% year-over-year, with homebuyer demand remaining near its lowest level since last spring.

The market currently shows 5 months of supply, up from 4.4 months a year earlier, representing the highest level in six years. This increased inventory has led to homes typically selling for 2% below list price, the largest discount in nearly two years. The median monthly housing payment has risen to $2,784, up 8.3% year-over-year, despite mortgage rates dropping below 7% for the first time since mid-December.

Regionally, Pittsburgh led with the highest year-over-year median sale price increase (15.7%), while Austin saw the largest decrease (-5.5%). New listings surged most significantly in Orlando (27.7%), while Detroit experienced the largest decline (-13.9%).