Redfin Corp Stock Price, News & Analysis

The U.S. housing market is showing signs of cooling, with pending sales experiencing a downturn as new listings reach pre-pandemic levels. A report from Redfin indicates a 15% year-over-year increase in pending sales; however, this is the smallest rise since July 2020. The median home-sale price surged to $364,048, marking a 23% increase from last year, while active listings dropped 33% compared to 2020. Mortgage applications fell 5% to their lowest since May 2020. Early-stage homebuying metrics suggest a potential further cooling as competition eases.

Redfin reports that 39.4% of homes in Utah are at high fire risk, the highest percentage among Western U.S. states. Colorado and Idaho follow with 19% and 14.4%, respectively. The report, based on property records and data from ClimateCheck, highlights the correlation between urban growth and fire risk, particularly around Salt Lake City. Despite California having $628 billion worth of homes at risk, Utah has the largest share of properties vulnerable to wildfires. The report underscores the urgency for buyers and sellers in high-risk areas amidst worsening fire conditions.

The latest report from Redfin reveals a cooling housing market as mortgage rates surpass 3% for the first time in ten weeks. The Redfin Homebuyer Demand Index has dipped below 2020 levels, reflecting a 1% year-over-year decline for the week ending June 20. Active home supply is up 5% from March lows, yet home prices continue to rise, with the median sale price at $361,750, a 23% increase year-over-year. The report also notes a decline in pending sales and an increase in homes selling above their list prices.

In Q1 2021, top iBuying firms bought 4,383 homes, down 6.1% YoY but up 20.6% from Q4 2020. iBuyers made up only 0.5% of total home sales across 418 U.S. metropolitan areas, a slight increase from 0.3% in the previous quarter. The median purchase price by iBuyers was $302,050, compared to $320,000 for typical homebuyers. Homes sold by iBuyers averaged 13 days on the market, the fastest since 2015. Raleigh and Charlotte topped iBuyer markets, with iBuyers offering lower commissions to agents at 2.43%, reflecting market competitiveness.

In 2021, Seattle's housing market has seen a significant surge, with 580 homes selling for $300,000 or more above asking prices, compared to just 16 last year. A total of 4,078 homes sold for between $100,000 and $299,999 above asking price, while 6,300 sold for $25,000 to $99,999 over asking. The median home-sale price rose 26.1% to $737,800. 68% of homes sold above asking price, with typical sale times dropping to five days. The competitive market is driven by local tech employees seeking larger homes, heavily influencing prices and availability.

According to Redfin's latest report, home prices are rising due to strong competition, while home tours, offers, and pending sales have shown a slowdown. For the four-week period ending June 13, the median home-sale price reached a record high of $358,766, up 24% year-over-year. New listings have increased by 9% from the previous year, but pending sales are down 9.8% from their peak in early May. Despite some indicators of improved buyer activity, overall demand appears unlikely to return to earlier spring levels.

RedfinNow has officially launched in the Portland, Oregon metro area, providing homeowners with a streamlined way to sell their homes by requesting cash offers directly from Redfin. This service eliminates the need for repairs or showings, offering certainty and control over the selling process. RedfinNow currently serves 24 markets across 10 states and the District of Columbia, enabling sellers to close between 10 to 90 days after accepting an offer. According to market manager Mike Morris, this service addresses a significant consumer need amid intense competition in the Portland market.

According to Redfin's latest report, 31.4% of users on Redfin.com considered relocating to different metropolitan areas in April and May 2021, similar to the first quarter but up from 27% a year prior. Popular destinations like Phoenix, Las Vegas, Sacramento, Austin, and Miami are seeing significant home price increases, driven by remote workers from expensive coastal cities. Notably, home prices in Austin rose 42.4% year-over-year, while Phoenix's prices increased by 33.3%. This trend highlights ongoing challenges in affordability for locals.