Redfin Corp Stock Price, News & Analysis

RedfinNow has launched in the Boston metro area, becoming the first major iBuyer to operate in this market. Homeowners can now receive cash offers without the need for repairs or open houses. RedfinNow provides certainty and control over selling timelines, allowing sellers to close between 10 to 90 days after accepting an offer. The service is part of Redfin's broader strategy to enhance home-selling solutions across 23 markets. Home prices in Boston have shown double-digit growth, presenting challenges for sellers needing to buy simultaneously.

Redfin Corporation (NASDAQ: RDFN) will announce its first-quarter 2021 results after market close on May 5, 2021. A live webcast will be held at 1:30 p.m. PT / 4:30 p.m. ET to discuss the results. Interested parties can access the webcast on Redfin's Investor Relations website. As a technology-driven real estate broker, Redfin has saved customers nearly $1 billion in commissions since 2006 and operates in over 95 markets across the U.S. and Canada.

Luxury home sales in the U.S. surged by 41.6% year-over-year in Q1 2021, significantly overshadowing the 7% growth in affordable homes and 5.9% in mid-priced homes, according to a Redfin report. The total number of luxury homes sold in metropolitan areas showed remarkable gains, with Miami having the highest increase at 101.1%. This shift is attributed to affluent Americans capitalizing on low mortgage rates, while lower-income groups face job losses and housing challenges. The luxury market exhibited a 5.1% decrease in active listings, the smallest decline across all tiers.

In Q1 2021, 31.5% of Redfin.com users sought to move to different metro areas, up from 30.3% in Q4 2020 and 26% a year prior. This marks the highest migration rate since tracking began in 2017. The shift is largely attributed to remote workers relocating for affordable housing. Notably, out-of-towners' budgets exceed locals', with the average budget in Phoenix at $627,000, 23% higher than locals. Home prices surged, with increases of 20% in Phoenix and 28.2% in Austin. Major outflows are seen from high-cost areas like New York and San Francisco.

The median home-sale price surged 17% year over year to reach an all-time high of $341,250, according to Redfin. Key housing market metrics from over 400 U.S. metro areas indicate that asking prices peaked at $353,750, with homes selling for a median of just 23 days on the market. Notably, 43% of homes sold exceeded their list price. However, new listings decreased by 13% compared to 2019, and active listings dropped 47%. The Redfin homebuyer demand index rose 4.3% from a month ago, highlighting strong buyer interest despite the limited inventory.

The national median home-sale price reached a record $353,000 in March 2021, reflecting a 17% year-over-year increase. This growth occurred alongside a historically low inventory of homes, with listings down 29% year-over-year. Homes sold quickly, averaging 25 days on the market. Notably, 42% of homes sold above their list price, establishing record competition in the housing market. Despite some price decreases in areas like Honolulu and San Francisco, most metros saw price increases, particularly in Austin and Fresno.

RedfinNow has announced its expansion into the Tucson metro area and the reopening of its services in Las Vegas after a temporary pause due to the pandemic. This iBuying service allows homeowners to receive cash offers without the burden of preparing their homes for sale. Operating in 22 markets across eight states and the District of Columbia, RedfinNow aims to provide homeowners with a seamless selling experience. The company continues to leverage its technology and local market insights to generate competitive offers, enhancing its service offerings in the current competitive housing market.

According to Redfin's March report, 64.0% of home offers faced competition, up from 62.1% in February. This marks the 11th consecutive month of over 50% competition. A record 46% of homes sold within a week of listing, driven by low mortgage rates and an influx of buyers due to remote work. Single-family homes saw the highest bidding-war rate at 66.5%, while townhomes followed closely at 65.6%. Salt Lake City had the highest competition at 87.1%.