Redfin Corp Stock Price, News & Analysis

New listings of homes for sale have dropped 15% year-over-year in the four weeks ending August 21, signaling the largest decline since the pandemic began. The supply of homes also decreased slightly by 0.6%. The median asking price for newly listed homes fell 5% from its peak in May, while sale prices decreased by 6% since June. Although buyer demand shows signs of stabilizing, sellers are hesitant to list due to economic uncertainties and rising mortgage rates, leading to a challenging housing market.

In July, nearly 70% of homes for sale in Boise, ID saw price reductions as sellers struggled with a cooling housing market. This trend wasn't isolated; other metros like Denver (58%), Salt Lake City (56.4%), and Tacoma (54.8%) also experienced significant price drops. The report from Redfin highlights that over 15% of home sellers across all 97 analyzed metros adjusted their prices. Many sellers initially had unrealistic price expectations, leading to increased price-drop rates compared to previous years.

In July, home sales in the U.S. fell by 19.3%, marking the largest year-over-year decline since the pandemic began, according to a report from Redfin. The drop in sales, down 4.1% month-over-month, was influenced by rising mortgage rates of over 5.4%%. New listings also decreased by 13.5% year-over-year. Home prices increased by 7.7%, the slowest growth since June 2020. Additionally, 21% of sellers reduced their asking prices, the highest percentage since 2012, signaling market adjustments.

The national median asking rent rose by 14% year-over-year to $2,032 in July, marking the smallest increase since November. This compares to a revised 15% growth in June. Month-over-month, rents grew by 0.6%, the slowest since February. Cincinnati saw the largest annual rent hike at 31%, while three metro areas experienced declines in rent. Redfin's Chief Economist noted that rising costs are impacting tenant budgets, leading to a slowdown in rent increases.

The latest report from Redfin reveals a stabilization in the housing market, with fewer homes being listed due to decreasing buyer demand. For the four weeks ending August 14, housing supply fell slightly, and new listings decreased by 14% year-over-year, marking the largest drop since June 2020. The median home sale price rose to $373,750, a 7% increase from the previous year, while pending home sales declined by 17%. Additionally, 30-year mortgage rates dipped to 5.13%, down from a peak of 5.81% in 2022, suggesting potential market adjustments.

In Q2 2022, real estate investors acquired 87,500 homes in the U.S., marking an 11% increase quarter-over-quarter and a 5.9% rise year-over-year. Despite a drop from the 93,700 peak in Q3 2021, this number is still significantly higher than the pre-pandemic average of 60,000. Investors commanded a 19.4% market share of home sales, maintaining a level noted as higher than pre-pandemic figures. Notably, investments totaled $60.1 billion, up from $50.5 billion in Q1 2022. The trend shows a cooling market but persistent demand from rental-focused investors amidst rising home prices.

In July, approximately 63,000 home-purchase agreements were canceled, marking 16.1% of total contracts—a record high, second only to March and April 2020. The slowdown in the housing market is attributed to rising mortgage rates, giving buyers more negotiating power. Notably, Jacksonville leads in cancellations at 29.3%, followed by Las Vegas at 27.4%. While annual home-price growth has decreased from 17% to 8%, prices are still rising, leaving buyers cautious about future investments.

The latest data from Redfin shows that in July, only 44.3% of home offers faced competition, a notable drop from 50.9% in June and 63.8% in July 2021. The typical home received 3.5 offers, down from 4.1 in June. This decrease in competition is attributed to rising mortgage rates and inflation, limiting buyer options and leading sellers to reduce prices. The highest bidding-war rate was in Raleigh, NC at 63.8%, while Phoenix reported the lowest at 26.6%. Overall, the housing market is experiencing a shift that favors buyers.

Redfin reports a 12% decline in new home listings year over year for the four weeks ending August 7, marking the largest drop since June 2020. This decline stems from reduced homebuyer demand due to higher mortgage rates and a phenomenon known as 'rate lock in.' Despite fewer listings, total housing supply is up 4% year over year, indicating buyers are pulling back more than sellers. The median home sale price has risen 8% to $379,089, although this is down 4.1% from a record high in June.