Redfin Corp Stock Price, News & Analysis

Redfin (NASDAQ: RDFN) reports positive developments for homebuyers in the U.S. housing market. The median home-sale price increased by 3.7% year-over-year during the four weeks ending February 16, marking the smallest increase since September. The average mortgage rate decreased to 6.87%, reaching its lowest level this year.

Market conditions show increased buyer leverage with five months of supply, up from 4.1 months a year earlier, representing the highest level since early 2019. New listings rose 4.2% year-over-year, reaching a three-year high. Homes are selling at 2% below asking price, the largest discount in two years, and taking 57 days to go under contract, the longest period in five years.

In Los Angeles, pending home sales increased 7.4% year-over-year, with new listings up 21.9%, likely influenced by recent Palisades and Eaton wildfires. Market conditions vary by region, with coastal Florida favoring buyers while West Coast and Northeast markets remain seller-dominated.

Redfin (NASDAQ: RDFN) reports that the U.S. housing market has shifted in favor of buyers for the first time this decade, with 3.7 months of for-sale supply in January 2025, the highest since February 2019. Multiple indicators support this trend: pending sales dropped 6.3% to pandemic-era lows, homes are staying on market for 56 days, price growth slowed to 4.1%, and homes sold for 1.8% below asking price.

The market shows significant regional variation, with Sun Belt metros, particularly in Florida, emerging as strong buyer's markets. Cape Coral leads with 11.6 months of supply, followed by Miami and McAllen, TX. In contrast, Northeast markets remain seller-friendly, with Rochester, NY showing just 1.1 months of supply, followed by Buffalo and Hartford, CT.

U.S. home prices increased 0.6% month-over-month in January 2025, slightly higher than the 0.5% growth seen in the previous three months, according to Redfin's Home Price Index. Year-over-year, prices rose 5.4%, marking the slowest annual growth since August 2023.

Among the 50 most populous U.S. metros, 10 experienced price declines in January. Tampa, FL saw the largest drop (-1.6%), followed by Dallas (-0.9%) and Oakland, CA (-0.7%). The strongest gains were in Pittsburgh, PA (3%), Nassau County, NY (2.8%), and Philadelphia (2.6%).

Redfin Senior Economist Sheharyar Bokhari notes that current market conditions, including increased listings and longer selling times, may lead to slower price growth. Homes are selling at nearly 2% below list price, the largest discount in almost two years.

Redfin (NASDAQ: RDFN) reports that all-cash home purchases in the U.S. declined to 32.6% in 2024, down from 35.1% in 2023, marking a three-year low. Despite the decrease, the share remains higher than pre-pandemic levels of 25-30%.

Florida metros dominated cash purchases, with West Palm Beach leading at 49.6%, followed by Jacksonville (40.6%), Cleveland (40%), Fort Lauderdale (38.9%), and Miami (38.1%). Conversely, expensive coastal metros showed the lowest cash-buyer shares, with San Jose at 18.1%.

The decline is partly attributed to reduced investor activity. According to Redfin Senior Economist Sheharyar Bokhari, cash purchases remain elevated due to wealthy Americans' continued participation in the expensive housing market. The total number of all-cash home sales reached its lowest level in at least a decade as overall home sales hit historic lows.

Redfin (NASDAQ: RDFN) reports that housing supply has reached its highest level since 2020, while demand has dropped to pandemic-era lows. Pending home sales fell 4.2% month-over-month and 6.3% year-over-year in January, marking the largest decline since August 2023. Meanwhile, active listings rose 12.9% year-over-year.

The typical home spent 56 days on the market, the longest for any January since 2020. The median home sale price increased 4.1% to $418,581. Higher mortgage rates (6.96% in January), economic uncertainty, and increased deal cancellations (14.3% of contracts) are contributing to decreased demand. Supply growth is attributed to the fading mortgage rate lock-in effect and slower sales.

Regional variations show significant differences, with pending sales rising in coastal markets like San Jose and Seattle while declining in pandemic boomtowns like Miami and Austin.

Redfin's latest report indicates a significant increase in housing supply, with new listings up by 7.4% year-over-year, reaching the highest level since early 2022. Conversely, pending sales have decreased by 6%, largely due to high home prices and mortgage rates. Nationwide, there are now five months of for-sale supply, the most since early 2019. The typical home took 57 days to go under contract, the longest period since March 2020. Median home-sale prices have risen by 4.3%, and the average 30-year fixed mortgage rate is 6.89%, down slightly from the previous week but still significantly higher than pre-pandemic levels.

Redfin's Homebuyer Demand Index has shown a slight uptick from its six-month low, suggesting potential increases in buyer activity. However, uncertainty among buyers and sellers, particularly in areas with many federal employees, persists due to return-to-office mandates and job security concerns. In Los Angeles, pending sales have risen by 3.4% after wildfires displaced many residents.

Key metrics include a median sale price of $375,750, a median asking price of $409,563, and a median monthly mortgage payment of $2,753. Active listings have increased by 11.1%, while the share of homes sold above list price has decreased to 20.9%.

Redfin (NASDAQ: RDFN) reports that U.S. homebuyers are experiencing the largest discounts in nearly two years, with typical homes selling for 1.8% below asking price. Properties are taking 56 days to go under contract, the longest period in almost five years, with 56% of listings remaining on the market for 60+ days.

The slowdown is primarily attributed to high housing costs, with average 30-year mortgage rates at 6.96% in January and median home prices up 4% year over year. Florida markets show the largest discounts, with homes in West Palm Beach, Fort Lauderdale, and Miami selling around 5% below asking price, influenced by increasing natural disaster risks and rising insurance costs.

Only seven of the 50 most populous U.S. metros see homes selling above asking price, led by San Jose at 3% above list price.

Redfin (NASDAQ: RDFN) has scheduled its fourth-quarter 2024 earnings release for Thursday, February 27, 2025, after market close. The company will host a live webcast conference call to discuss the results at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time, accessible through Redfin's Investor Relations website.

Redfin operates as a technology-powered real estate company providing brokerage, rentals, lending, and title insurance services. The company runs the #1 real estate brokerage site in the country and has helped customers save over $1.6 billion in commissions since its 2006 launch. Currently, Redfin serves approximately 100 markets across the U.S. and Canada with a workforce of over 4,000 employees.

Redfin's most-viewed home listings in January 2024 were predominantly located in tech hubs, with 7 out of 10 properties in the Bay Area and 2 in Seattle's eastside suburbs. Nine of these listings were priced above $1 million, with five exceeding $2 million, significantly higher than the U.S. median home-sale price of $430,000.

The top viewed properties included homes in San Jose ($1.49M), Dublin ($1.29M), Fremont ($544K), Bellevue ($1.05M), and Pacific Palisades ($24.5M). Notable listings in tech-centric areas included properties in Los Altos near Tesla's offices and Palo Alto near Meta's headquarters.

According to Redfin Premier agent Josh Felder, move-in ready homes between San Francisco and San Jose priced $1-3 million are selling quickly, especially in good school districts. The high viewing numbers are attributed to inventory scarcity, return-to-office mandates from major tech employers like Amazon, and the regions' high-income demographics.