Redfin Corp Stock Price, News & Analysis

Redfin reports a significant increase in stale home listings across the U.S. housing market. In June, 64.7% of homes on the market had been listed for at least 30 days without going under contract, up from 59.6% a year earlier. This marks the biggest annual increase in a year and the highest share for any June since 2020.

The trend is attributed to record-high home prices and elevated mortgage rates dampening buyer demand, while supply remains relatively high. Texas and Florida are experiencing the fastest growth in stale inventory, with Dallas seeing the most significant uptick among major U.S. metros. The report also notes that 42.6% of national home listings in June had been on the market for at least 60 days, up from 38.4% a year earlier.

Redfin (NASDAQ: RDFN) has announced it will release its second-quarter 2024 financial results on Tuesday, August 6, 2024, after the stock market closes. The company will host a live webcast and conference call to discuss the results at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors and interested parties can access the webcast on Redfin's Investor Relations website at http://investors.redfin.com.

Redfin, a technology-powered real estate company, offers a range of services including brokerage, rentals, lending, title insurance, and renovations. The company operates the #1 real estate brokerage site in the country and has saved customers over $1.6 billion in commissions since its launch in 2006. Redfin serves more than 100 markets across the U.S. and Canada and employs over 4,000 people.

Redfin reports a record-high rate of home purchase cancellations in June 2024, with nearly 56,000 deals falling through, equal to 14.9% of homes under contract. This trend is attributed to high housing costs, with the median home sale price reaching a record $442,525, up 4% year-over-year. Despite a slight decrease in mortgage rates to 6.92%, they remain more than double the pandemic-era lows.

Key highlights include:

• Florida metros led in cancellations, with Orlando at 20.8%
• 19.8% of homes for sale had price cuts, the highest June rate on record
• Home sales fell 0.5% month-over-month, the largest decline since October 2023
• Active listings increased 12.8% year-over-year, the largest annual gain on record

Redfin's latest report reveals U.S. home prices rose 0.2% in June, the smallest monthly increase since January 2023. Prices were up 6.9% year-over-year, the lowest annual growth since January. The Redfin Home Price Index (RHPI) shows prices continue to set record highs despite fewer buyers competing due to high mortgage rates.

Key points:

• Price growth has been slowing each month since February
• Falling mortgage rates and low inventory likely to keep prices rising slowly
• 19 of the 50 most populous U.S. metro areas saw price drops in June
• Largest declines: Nassau County, NY (-3.1%), Austin, TX (-1.7%), West Palm Beach, FL (-1.1%)

Redfin Senior Economist Sheharyar Bokhari expects prices to continue ticking up in coming months due to falling mortgage rates and low inventory levels.

Redfin reports that the typical U.S. homebuyer's monthly housing payment has dropped to $2,722, which is $115 lower than April's all-time high. This decrease comes despite home prices being just about $100 shy of last week's record high. The decline in payments is attributed to falling mortgage rates, which have reached their lowest level since February following a cooler-than-expected inflation report.

Despite this positive news for buyers, pending home sales have declined by 5.6% year-over-year, marking the biggest drop in eight months. The Redfin Homebuyer Demand Index is down 15%, indicating that buyers are still hesitant. Some are waiting for further rate decreases, while others are deterred by extreme heat in certain regions. However, rising supply offers hope, with new listings up 6.4% year-over-year and total listings near their highest level in almost four years.

Redfin's analysis reveals a dramatic increase in housing costs across swing states since the 2020 presidential election. The median monthly housing payment for homebuyers in these states has nearly doubled, rising 92% to $2,161. This surge is attributed to both rising home prices (up 40% to $316,063) and higher mortgage rates (currently 6.89%).

Affordability has significantly declined, with only 35.1% of homes listed in swing states being affordable to median-income households, down from 65.5% in 2020. The typical swing-state family now needs to earn $86,421 annually to afford the median-priced home without exceeding 30% of their income on housing costs.

This affordability crisis is a major factor in the 2024 presidential election, with over 90% of adult Gen Zers considering it important in their voting decision. The issue affects all states, with similar trends observed in red and blue states.

Redfin reports that homebuyers with a $3,000 monthly budget have gained $22,500 in purchasing power as mortgage rates dropped to 6.85% from a five-month peak of 7.5% in April. This enables them to afford homes priced at $447,750, up from $425,500. The decline in rates follows a favorable CPI report indicating cooling inflation, which increases the likelihood of a Fed rate cut by September. Although mortgage rates are decreasing, home prices remain at record highs. Inventory is rising, with new listings up 7% year-over-year and total homes for sale near their highest levels since late 2020. Many homes are sitting on the market longer, giving buyers the opportunity to negotiate for lower prices and other benefits. Redfin's Chief Economist Daryl Fairweather highlights this period as a favorable window for serious buyers due to declining rates and increasing supply, though competition may intensify if rates drop further.

Redfin reports a record high in U.S. median home-sale prices for the ninth consecutive week, reaching $397,482 as of July 7, marking a 4.7% year-over-year increase. Despite elevated mortgage rates suppressing homebuying demand, prices remain high due to historically low inventory. However, signs suggest potential cooling: homes are selling below list price, inventory is rising, and a larger share of listings are stagnating. Pending home sales have dropped 3.5%, and mortgage applications are down 13%. New listings are up 7.3%, and the total homes for sale have increased by 18.3%.

Redfin reports a significant decline in rent prices across Florida's most populous metros. Jacksonville leads with a 12.4% decrease in median asking rent, followed by Tampa at 6%, Orlando at 4.8%, and Miami at 3.8%. This trend is echoed in Austin, TX, where rents dropped 12.6%. These reductions are attributed to the high number of apartments built during the pandemic to meet surging demand, resulting in increased competition among property owners. Nationally, the median apartment asking rent rose 0.7% year-over-year in June to $1,654, the highest since October 2022. Despite rising demand, rent growth is due to a surge in newly built apartments. The apartment vacancy rate has increased to 7.8%. Conversely, areas like Virginia Beach and Cincinnati saw rent increases exceeding 12% due to new constructions.