Redfin Corp Stock Price, News & Analysis

Redfin reports that U.S. home prices have reached a record high with a median home-sale price of $394,000, marking a 4.4% year-over-year increase as of June 9. Despite this, there are signs that price growth may ease as asking prices level off and 6.5% of home sellers are reducing their asking prices. Mortgage rates have dipped to their lowest in three months at 6.99%, which could relieve buyers by lowering monthly housing payments. However, high costs are still deterring some buyers, with pending home sales down 3.5% year over year and Redfin's Homebuyer Demand Index down 18%. New listings have increased by 7.8% but remain below typical spring levels.

More than 61.9% of homes listed in May remained unsold for at least 30 days, according to Redfin (NASDAQ: RDFN). This is an increase from 60% a year ago and 50% two years ago. High mortgage rates and record home prices are reducing buyer demand, leading to an accumulation of unsold homes. The 30-year fixed mortgage rate is currently at 6.99%, contributing to a near-record high median monthly housing payment. In Dallas, 60% of listings in May were unsold for over 30 days, up from 53% last year. Conversely, Seattle saw a decrease in unsold homes from 50.5% to 41.2%.

Damon Joshua has joined Rent. as President, bringing over 25 years of sales leadership experience.

He aims to drive Rent.'s strategic vision, ensuring the company remains an innovative platform for marketing multifamily rental properties.

Damon will focus on expanding Rent.'s network of rental brands and integrating closely with its parent company, Redfin.

His previous roles include senior vice president at MarketSource and leadership positions at Vertafore, Cisco, Verizon, and UPS.

Redfin CEO Glenn Kelman praised Damon’s leadership and customer-first values.

The median U.S. asking rent rose by 0.8% year over year in May, reaching $1,653, the highest level since October 2022, according to Redfin (NASDAQ: RDFN). This marks the second consecutive monthly increase following 11 months of decreases. Washington, D.C., Cincinnati, and Chicago experienced double-digit rent growth. However, the Sun Belt areas like Jacksonville, FL, and San Diego saw declines. The report highlights that the surge in multifamily construction during the pandemic has now slowed, balancing the supply-demand dynamics. Despite the increase, rents are still $47 below the record high of August 2022. The rental vacancy rate remains stable at 6.6%, indicating a relatively balanced market.

Redfin's latest report reveals that housing markets in western Florida are cooling faster than anywhere else in the U.S., driven by rising supply and falling demand. North Port, Tampa, and Cape Coral lead this trend, influenced by increasing natural disasters, a surge in new construction, and high insurance costs. North Port's home supply increased by 68% year-over-year, with the median price per square foot dropping by 1.2%. In contrast, housing markets in Rochester and Buffalo are heating up due to relatively low prices, attracting more homebuyers. The report highlights significant regional disparities, with Florida experiencing price drops and high inventory, while areas like western New York see rising prices and lower inventory.

Home-sale prices are falling year over year in four major U.S. metros: Austin (-2.9%), San Antonio (-1.2%), Fort Worth (-1.2%), and Portland, OR (-0.9%). This marks the first instance of such declines in multiple metros since January. Nationwide, prices rose 4.4% to an all-time high during the four weeks ending June 2, but early indicators suggest this growth could slow.

6.4% of U.S. home sellers cut their asking price, the highest share since November 2022. The typical active listing has been on the market for 46 days, up 2.3% year over year. High mortgage rates and housing costs are deterring buyers, with rates recently above 7%, pushing the median monthly payment to near-record levels.

Pending home sales fell 3.8% year over year, and mortgage-purchase applications declined 4% week over week. Inventory is also losing momentum, with new listings up only 6.9% year over year, one of the smallest increases since February.

According to a recent Redfin survey, 91% of adult Gen Zers consider housing affordability a critical factor in their presidential vote, surpassing issues like the economy, abortion, and gun rights. This survey, conducted by Qualtrics in February 2024, included around 3,000 U.S. homeowners and renters. While Millennials, Gen Xers, and Baby Boomers rank the overall economy highest, at least 80% of every generation still prioritize housing affordability. Home prices have surged over 40% since the pandemic, and 2023 marked the least affordable year on record. Elevated mortgage rates have compounded these high prices, making it especially tough for young, first-time homebuyers. The median U.S. asking rent has also risen by over 20% since 2019. Redfin's Senior Economist notes that despite a strong economy, the housing market remains a major concern for young people. Presidential candidates, including Biden and Trump, have proposed plans to address housing costs.

According to Redfin, U.S. renters are staying in their homes longer due to rising housing costs and rental prices. In 2022, 16.6% of renters lived in the same home for 10 years or more, up from 13.9% a decade earlier. Renters staying 5-9 years rose to 16.4%, while 41.8% stayed 1-4 years. Only 25.2% moved within a year, down from 32.2% in 2012. Higher home-sale prices and mortgage rates have made homeownership difficult, pushing renters to stay put. Remote work trends and housing supply also contribute. Gen Z renters moved most frequently, while baby boomers stayed the longest. Major metros like New York and Los Angeles saw renters staying longer due to high costs of moving or buying. Conversely, Austin, TX had the highest move rates.

Redfin reports that 6.4% of home sellers in the U.S. reduced their asking prices in the four weeks ending May 26, 2024. This is the highest percentage since November 2022, suggesting a potential softening in sale-price growth due to high mortgage rates. The median asking price dropped by $3,000 to $416,623, the first decline in six months. However, the median sale price hit a record high of $390,613, up 4.3% year-over-year. Despite this, pending sales fell by 3.4%, and mortgage-purchase applications are near their lowest level in six months. The median monthly mortgage payment is now $2,812, down from peak levels as mortgage rates recently dipped below 7%. Inventory is growing stale, and listing growth has slowed. Redfin advises buyers to consider less trendy neighborhoods or condos to avoid bidding wars.