Redfin Corp Stock Price, News & Analysis

According to Redfin's latest migration report, 28.7% of Redfin.com users sought to relocate to different metro areas in July and August 2020, marking a rise from 27.4% in Q2. This is the highest rate recorded since tracking began in 2017. Notably, areas like Sacramento and Austin saw significant net inflows as buyers left expensive coastal cities, thanks to remote work options. Median home prices are rising sharply across these regions, with Sacramento up 11.4% to $468,000. Conversely, cities like New York and San Francisco experienced the largest net outflows as residents seek affordable housing.

Redfin's latest report reveals that nine of the ten housing markets with the most significant buyer competition are priced below $500,000, showing over 10% price growth in the past year. El Dorado County, CA, leads the list with a 60% increase in home sales, despite its median price being $550,000. Conversely, major cities like New York and San Francisco are cooling down, with the Bronx experiencing a 43% drop in home sales. The report highlights shifting buyer preferences, with remote work driving demand for more affordable suburban areas.

The median home price in blue counties rose 13.1% to $346,000 during the four weeks ending September 6, 2020. Prices increased 11.5% in swing counties to $259,500, and 10.6% in red counties to $209,000. Housing supply tightened significantly, with active listings down nearly 35% in swing counties, 32% in red counties, and 22.2% in blue counties. Homes sold fastest in swing counties, with 43.5% going under contract within two weeks. Sales increased most in red counties by 15.9%. Notably, homes in blue counties sold closest to their asking price, at 99.3% of list price.

The national median home price rose 11.0% year-over-year to $328,400 in August, marking the largest increase since February 2014. Driven by low mortgage rates, homebuyer demand remains strong, although home supply is at a record low, with active listings down 22% year-on-year. Home sales increased by 10.2% compared to last year, with significant gains in areas like Bridgeport, CT. The competitive market shows a 32.0% of homes sold above list price, indicating a robust seller's market. New listings rose by 4.6% from the previous year, yet the supply-demand imbalance persists.

The Las Vegas housing market saw a 7.8% year-over-year increase in typical home-sale prices, reaching $310,000 in August 2020. Notably, 41% of homes sold within two weeks, a rise from 28.3% last year. Despite a 16.4% unemployment rate in the area, demand remains strong due to an influx of remote workers from high-cost states. Pending home sales increased 12.8%, while the number of homes for sale fell 18.7%. The pandemic has shifted local buyer needs, prompting demand for larger spaces and low mortgage rates.

Redfin (NASDAQ: RDFN) has expanded its cash offer service, RedfinNow, to homeowners in Palm Springs, California. This initiative allows sellers to receive an all-cash offer, providing flexibility in move-out dates and eliminating the need for home preparations, in-person showings, or open houses, particularly beneficial during the pandemic. The service targets homes built after 1940, aiming to create a seamless selling experience while catering to the market's rebound in buyer demand. The move is aligned with Redfin's growth strategy in Southern California.

According to a Redfin report, home prices in neighborhoods where Black people bought homes rose 7% in July 2020, exceeding the 6% increase in predominantly white neighborhoods. Home sales dropped 15% in Black neighborhoods versus 13% in white ones since the pandemic began. The study highlights a widening homeownership gap, worsened by the pandemic's economic impact. Notably, Newark saw a 14% price rise in Black neighborhoods, while San Francisco experienced a stark 32% decline in sales. The analysis indicates that Black homebuyers are disproportionately affected by higher prices and lower inventory.

The U.S. median home sale price surged 13% year-over-year to $319,178, marking the highest figure since October 2013, according to Redfin's latest report. Key highlights include a 28% increase in pending home sales and a 9% rise in new listings, both the largest since 2015. Despite these gains, active listings dropped by 28%, reaching an all-time low. The average sale-to-list price ratio hit a record 99.3%, while Redfin's Homebuyer Demand Index rose 21% from pre-pandemic levels. Challenges remain for first-time buyers due to escalating prices and changing market dynamics influenced by remote work.

The iBuyer market saw a dramatic decline in home purchases, with only 880 homes sold in Q2 2020, down 88% year-over-year. This marks the lowest volume since Q1 2017. Total iBuyer expenditures dropped to $195 million, significantly lower than $1.6 billion in the previous year. Despite this downturn, Redfin's iBuyers sold homes faster, with a median listing time of just 13 days. Notably, the median price for homes purchased by iBuyers fell to $241,100, down from $250,000 a year earlier. The analysis highlights changing market dynamics influenced by the pandemic.