Redfin Corp Stock Price, News & Analysis

Sales of affordable homes in the U.S. rose 11.3% year-over-year in Q4 2021, while luxury home sales fell 16.3%. The strong job market and increased investor activity contributed to this growth. Inventory of affordable homes increased by 18.6%, marking a shift as many homeowners opted to sell due to the end of mortgage forbearance policies. Median sale prices surged across all segments: luxury homes rose 17.3% to $1,038,200, while the most affordable homes saw a 10.9% increase to $127,500. The luxury market, however, faced a 21% drop in active listings, indicating supply constraints.

In the fourth quarter of 2021, 31.2% of Redfin.com users sought to relocate, slightly down from the record 31.5% in Q1 2021 but significantly above the 26.3% from Q4 2019. The data, derived from roughly 2 million users across 111 metro areas, indicates sustained interest in moving partly due to low mortgage rates and increased remote work flexibility. Miami, Phoenix, and Las Vegas ranked as the top relocation cities, while San Francisco and New York saw the highest net outflows. The trend highlights ongoing shifts in housing preferences influenced by affordability and climate considerations.

According to a Redfin survey, 77% of homebuyers and sellers perceive a housing bubble in their area. However, Redfin's Chief Economist, Daryl Fairweather, argues that rising mortgage rates and stricter lending practices prevent a bubble from forming. The current housing market, characterized by rapid price growth, is influenced by high demand and limited supply. Fairweather predicts a slowdown in home-price growth in 2022 and asserts that the fundamental dynamics today differ from those preceding the 2008 crash.

Redfin (RDFN) reported a 14.1% increase in average monthly listed rents in the U.S. year-over-year, reaching $1,877 in December 2021, marking the largest annual jump since February 2019. Mortgage payments for homebuyers also saw a significant rise of 21.6%, driven by increasing home prices and mortgage rates. This trend is pushing more potential buyers toward renting, thereby increasing rental demand. Strongest rent increases were seen in Austin, TX (40%) and Nassau County, NY (35%), while only Kansas City, MO experienced a decline in rents.

Redfin's recent report reveals significant shifts in the housing market for the four weeks ending January 16. New listings dropped by 12%, leading to a 29% decline in total homes for sale, marking an all-time low of 445,000. Despite a slight 1% increase in pending sales, the rising mortgage rates could deter potential homebuyers. Meanwhile, the median home sale price rose 14% year over year to $358,500, and homes are selling faster, with 41% of listings selling above the asking price.

In December 2021, 59.6% of home offers by Redfin agents faced bidding wars, marking a decrease from 61.3% in November yet higher than 54% in December 2020. The housing market remains competitive due to a shortage of homes, with buyers often submitting multiple offers. Homes priced between $800,000 and $1 million saw the highest bidding war rates at 64.6%. Salt Lake City and Tucson had the highest bidding-war rates at 74% and 73.1%, respectively. The ongoing low mortgage rates continue to fuel this competitive landscape amid rising prices.

Seattle—(BUSINESS WIRE)—Redfin (NASDAQ: RDFN) reports that home sales fell 3.6% month-over-month and 11% year-over-year in December, marking the largest monthly decline since May 2020. The median sale price rose to $383,100, a 15.1% increase from the previous year. Active listings dropped significantly, with only Detroit reporting an increase. Despite high demand, a lack of supply is constraining sales, leading to expectations of rising prices in January. The average sale-to-list price ratio remained at 100.5%, reflecting competitive market conditions.