Redfin Corp Stock Price, News & Analysis

Redfin (NASDAQ: RDFN) reported its Q4 and full-year 2024 financial results, showing mixed performance. Q4 revenue increased 12% year-over-year to $244.3 million, with gross profit up 12% to $81.9 million. However, the company posted a net loss of $36.4 million in Q4, wider than the $22.9 million loss in Q4 2023.

For full-year 2024, revenue grew 7% to $1,043.0 million, while net loss expanded to $164.8 million from $130.0 million in 2023. The company achieved a mortgage attach rate of 27% and maintained its position as the #1 brokerage website with 7x the traffic of competitors. The agent count grew 14% year-over-year to 1,927 in Q4.

Looking ahead to Q1 2025, Redfin expects revenue between $214-225 million and projects a net loss between $83-94 million. The company plans to increase advertising by 38% while targeting full-year adjusted-EBITDA profitability.

Redfin (NASDAQ: RDFN) reports a significant slowdown in U.S. home-price growth, with median prices rising just 3.5% year-over-year during the four weeks ending February 23, marking the smallest increase since September.

The housing market is showing favorable conditions for buyers as mortgage rates have decreased to their lowest level in over two months, dropping from 7.13% to 6.78%. Market indicators show 4.6 months of supply, up from 4 months last year, with homes typically selling for about 2% below asking price.

While Redfin's Homebuyer Demand Index has reached its highest level since the year's start and Google searches for homes have peaked since September, pending home sales remain down 6.2% year-over-year. The typical monthly housing payment remains near its all-time high, just $32 below the peak.

Florida's housing market hit a record-high inventory of 172,209 homes in January 2024, marking a 22.7% increase year-over-year according to Redfin (NASDAQ: RDFN). The surge in available homes is attributed to multiple factors:

- Increased home construction activity
- Rising natural disaster concerns
- Skyrocketing insurance costs
- Escalating HOA fees
- Cooling buyer demand (pending sales down 9.3% YoY)

The condo market is particularly affected, reaching all-time high inventory levels due to new structural regulations driving up HOA fees. Eight Florida metros, predominantly coastal areas, reported record-high active listings, including Cape Coral, Deltona-Daytona Beach, and North Port-Sarasota. Real estate agents describe current conditions as a buyer's market, with sellers needing to offer concessions and ensure properties are in excellent condition to attract offers.

The typical U.S. homebuyer's down payment reached 16.3% of purchase price in December, up from 15% a year earlier, according to a new Redfin report. In dollar terms, this amounts to $63,188, a 7.5% increase year-over-year—the largest growth in five months.

This rise is primarily attributed to increasing home prices, which climbed 6.3% annually to approximately $428,000. High mortgage rates (near 7%) are also influencing buyers to make larger down payments to reduce monthly interest costs.

Other key findings include:

• Cash purchases represented 30.6% of home sales, down from 33.8% a year ago
• FHA loans accounted for 15% of mortgaged sales, slightly below last year's 15.9%
• VA loans increased to 6.7% from 6.2% a year earlier
• Conventional loans remain dominant at 78.4% of mortgages

Regional variations show San Francisco leading with 26.4% average down payments, while Virginia Beach had the lowest at just 3%.

Florida's inland condo market is showing stronger performance compared to coastal regions, with median sale prices rising 5.4% year over year in January, while Gulf Coast and Atlantic Coast prices declined 4.8% and 3% respectively. The strength in inland areas is attributed to newer developments, lower insurance costs, and reduced natural disaster risks.

Key factors include lower HOA fees in inland areas (Tallahassee: $250/month vs Miami: $965/month) and fewer buildings over 30 years old (47.7% inland vs 71% Atlantic Coast). However, the market faces challenges with inventory jumping 37.5% year over year and sales dropping 15.9% in inland Florida, significantly more than coastal regions.

The 2022 Florida law requiring condo inspections for buildings three stories or taller at 30 years old has led to increased HOA fees and special assessments, particularly affecting coastal properties. Inland areas benefit from newer construction and lower flood risk (4.8% inland vs 59.4% Gulf Coast).

Redfin's latest analysis reveals that minimum-wage workers in the U.S. would need to work 106 hours weekly to afford a median-priced apartment of $1,599, assuming the standard 30% income-to-rent ratio. This represents an improvement from August 2022's peak of 125 hours when median rent was $1,704.

The study, based on data through January 2024, uses a national effective minimum wage of $11.59 for 2025. While rents have decreased 6.2% ($105) from their peak, they remain 20.4% ($271) higher than pre-pandemic levels. State-by-state analysis shows significant variations: New Hampshire workers face the highest burden, requiring 224 hours weekly at $7.25/hour to afford a $2,110 median apartment, while South Dakota workers need the least at 75 hours weekly at $11.20/hour for a $1,085 median apartment.

Redfin (NASDAQ: RDFN) has released a report detailing the 10 most expensive home listings in the United States, with coastal Florida and Southern California dominating the list. Half of the properties are located in Florida, three in Southern California, one in New York City, and one in Lake Tahoe.

The most expensive listing is in Manalapan, FL, priced at $285 million, followed by a Naples, FL property at $210 million. All listings exceed $100 million, with two surpassing $200 million. Despite challenges like natural disasters and high insurance costs, Florida's luxury real estate market remains attractive due to its beachfront locations, luxurious lifestyle, and absence of state income tax.

The report also highlights January's most expensive sales, led by a New York 5th Avenue apartment at $53.5 million and a Naples estate at $50.5 million. The top 10 sales were distributed across New York, Florida, Los Angeles, and Aspen.

U.S. housing market value increased by $2.5 trillion in 2024, reaching $49.7 trillion total, marking a 5.2% year-over-year growth - the second-slowest since 2011. Albany and Rochester, NY led major metros in value growth, rising 11.3% and 11.2% respectively, while Florida markets showed slower growth due to increased supply and natural disaster concerns.

Millennials now own over 20% of the U.S. home market, with their total home value rising 18.8% to $9.7 trillion, though Baby Boomers still maintain the largest share at 41.1% ($19.8 trillion). Rural home values outpaced urban and suburban areas for the seventh consecutive year, increasing 6.4% to $8.1 trillion, compared to urban areas' 4.9% growth to $10.6 trillion and suburban areas' 5.1% rise to $30.8 trillion.

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.