Redfin Corp Stock Price, News & Analysis

Downtown Seattle's apartment rents increased for the first time in 17 months, rising 2.5% year over year to $2,000 in December, according to Redfin. This uptick precedes Amazon's January policy requiring staff to work in-office five days a week.

Seattle's rental market has seen significant fluctuations: median asking rent peaked at nearly $2,500 pre-pandemic, dropped to $1,399 in February 2021, surged to $3,118 in August 2022, and then declined 36% due to increased apartment construction. Among Seattle's inner neighborhoods, Capitol Hill saw the highest increase (+7.2% to $1,825), while Queen Anne and South Lake Union experienced declines exceeding 13%.

The overall Seattle metro area saw a modest 0.5% increase to $2,017. On the east side, downtown Redmond rents rose 4.3% to $2,350, while downtown Bellevue decreased 3% to $2,579.

Redfin (NASDAQ: RDFN) reports that U.S. housing market activity is experiencing significant headwinds, with the median monthly housing payment reaching $2,686 - the highest in nearly seven months. This surge is attributed to rising mortgage rates (7.04%) and a 5% year-over-year increase in median home sale prices ($378,144).

The market shows signs of slowdown with pending home sales down 10.1% annually, marking the largest decline in over a year. Homes are taking longer to sell, averaging 52 days on market - the longest span in two years. Contributing factors include extreme weather conditions, wildfires in Southern California, and new listings.

In Los Angeles, the recent wildfires have destroyed or damaged 17% of homes within the Palisades and Eaton fires perimeters, leading to a surge in rental searches. Online views of rental listings in Los Angeles County have nearly doubled year-over-year, while pending home sales declined by approximately 10%.

Redfin reports that renters now need to earn $63,680 to afford the median asking rent for a U.S. apartment, the lowest amount since March 2022. This represents a 0.4% decrease from last year and a 6.4% drop from August 2022, when the median asking rent was at an all-time high of $1,700.

Renters are earning more, with the median income for 2024 estimated at $54,752, up 5.3% from 2023 and 35.2% from 2019. The gap between renters' earnings and the income needed for rent affordability is narrowing, with the smallest difference in five years.

Austin, TX, is the most affordable metro for renters, with a median salary 25.1% higher than needed to afford the typical apartment. Providence, RI, is the least affordable, with renters earning 41.3% less than required. Rental affordability improved the most in Austin in 2024, where the required income to afford the typical apartment fell by 16.3% from the previous year.

Conversely, rental affordability worsened the most in Providence, RI, with a 12.6% increase in the income needed to afford the median rent. Other metros with significant year-over-year affordability declines include Virginia Beach, VA, Louisville, KY, and Baltimore, MD.

Redfin (NASDAQ: RDFN) reports U.S. home prices increased 0.4% month-over-month in December 2024, following November's 0.5% growth. The year-over-year price growth of 5.4% marked the smallest annual increase since 2015 and second smallest since 2013, according to the Redfin Home Price Index (RHPI).

Among the 50 most populous U.S. metro areas, 15 (30%) experienced price declines in December. The largest drops were in Tampa (-1.3%), Atlanta (-0.9%), and Miami (-0.7%). Conversely, the highest gains were in Pittsburgh (1.9%), Cleveland (1.5%), and St. Louis (1.3%).

Redfin Senior Economist Sheharyar Bokhari predicts steady price growth throughout 2025, citing insufficient inventory to meet buyer demand despite expected increases in sales due to pent-up demand.

Redfin reports that home prices rose year-over-year in all 50 of the most populous U.S. metropolitan areas in December, marking the first such increase since May 2022.

Cleveland saw the largest increase at 15%, followed by Milwaukee (14.5%) and Philadelphia (14%). In contrast, Florida metros experienced the smallest increases, with Tampa at just 0.5%.

According to Redfin Senior Economist Elijah de la Campa, even traditionally affordable areas like Cleveland are experiencing double-digit price hikes, partly due to a shortage of homes for sale. Home prices soared during the pandemic due to low mortgage rates but fell in 2023 as rates climbed. However, prices have rebounded as buyers adjust to higher rates and inventory. In December, the median home price increased by 6.3% year-over-year to $427,670.

In some areas, sellers are holding firm on prices, making it difficult for buyers to negotiate discounts. This trend is particularly pronounced in Cleveland, where local families are often priced out of desirable neighborhoods.

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The Palisades and Eaton fires in Los Angeles have caused significant damage to residential properties, destroying or damaging 14% of homes within the fire perimeters, totaling 6,354 homes. Of these, 5,449 (86%) were destroyed and 905 (14%) were damaged. Single-family homes represented 89% of affected properties, with 11% being multi-family units.

The impact has created intense competition in the rental market, with one property being bid up from $16,000 to $30,000 monthly. The fires have disrupted real estate transactions, with some buyers canceling deals and sellers opting to rent their properties to affected residents instead. The destruction exceeds Los Angeles County's annual single-family permit issuance of roughly 6,000, potentially exacerbating the region's existing housing shortage.

Redfin (NASDAQ: RDFN) reports that pending home sales dropped 4.5% month-over-month in December 2024, marking the largest decline since October 2022. The decline was primarily driven by rising mortgage rates, which reached 7.04% by year-end after hitting a low of 6.6% in early December.

Nearly 40,000 home-purchase agreements were canceled in December, representing 16.2% of homes under contract - the highest December cancellation rate since records began in 2017. Despite this, existing home sales rose 0.7% month-over-month to 4,317,683 units annually, the highest level since February 2023.

The median U.S. home sale price increased 6.3% year-over-year to $427,670, marking the biggest annual gain since February. New listings fell 1.6% month-over-month, while homes typically spent 49 days on the market - the slowest December pace since 2019.

Redfin (NASDAQ: RDFN) reports significant declines in home sales and listings due to multiple factors affecting the U.S. housing market. Pending home sales fell 8.4% year over year during the four weeks ending January 12, marking the largest decline since October 2023. The Redfin Homebuyer Demand Index dropped 11% month over month to its lowest level since August.

The decline is attributed to Southern California wildfires, extreme weather conditions in the Northeast, Midwest, and South, and rising housing costs. The median housing payment is at its highest level in over two months, with home sale prices up 5.8% year over year. However, there are positive indicators: mortgage rates are falling following a softer-than-expected core inflation report, and mortgage-purchase applications have reached their highest level in nearly a year.

In Los Angeles, wildfires are simultaneously decreasing homebuying demand and listings while increasing demand from displaced residents seeking temporary housing. The median sale price nationwide stands at $379,609, with active listings up 9.8%, representing the smallest increase in nearly a year.

Redfin (NASDAQ: RDFN) reports that U.S. median asking rents fell 0.3% year over year to $1,594 in December 2024, reaching the lowest level since March 2022. This represents a 6.2% decline from the August 2022 peak of $1,700.

The decline is attributed to increased housing supply, with apartment completions surging 58.1% year over year in Q3 2024, reaching the highest level since 1974. This has led to an 8% vacancy rate for buildings with five or more units.

The report shows declining rents across all apartment types, with 3+ bedrooms experiencing the largest drop (-2.5% to $1,950). Among major metros, Austin saw the steepest decline (-16.3%), followed by Tampa (-10.4%) and Jacksonville (-6.7%). Conversely, Providence led rent increases (12.6%), followed by Virginia Beach (10.9%).