Redfin Corp Stock Price, News & Analysis

In Q4 2020, 30.3% of Redfin.com users sought to relocate to a different metro area, up from 29.2% in Q3 2020. This trend is primarily driven by remote work, increasing the appeal of affordable areas. Notable cities experiencing significant net inflows include Austin (+148%), Las Vegas (+67%), and Cape Coral (+168%). Meanwhile, New York and San Francisco led in net outflows, with 43,765 and 41,741 users looking to leave, respectively. This has caused home prices in sought-after markets to increase, as more buyers migrate from higher-cost areas.

The median home sale price rose 14% year over year to $320,025, as reported by Redfin on January 15, 2021. Key findings indicate that pending home sales increased by 35%, while new listings declined by 3%, marking the first decrease since July. Active listings plummeted by 33% to a record low. Moreover, 38% of homes accepted offers within two weeks, illustrating increased buyer competition. Additionally, the Redfin Homebuyer Demand Index was up by 40% from pre-pandemic levels. Mortgage purchase applications increased by 8% week-over-week.

In December 2020, 49.7% of home offers from Redfin agents faced bidding wars, marking a decline from 55.9% in November but highlighting stable demand despite seasonal trends. The housing market has remained competitive due to low interest rates, with the 30-year mortgage rate hitting 2.65%. Home prices rose 13.1% year-over-year, and sales increased 16.2%. Notably, Salt Lake City (75.6%) and San Diego (74.5%) had the highest bidding-war rates. Luxury homes, particularly those priced between $1 million and $1.5 million, were most likely to attract such competition.

Redfin's latest report reveals that 63% of homebuyers in 2020 made offers on properties they had not seen in person, a significant increase from 32% in 2019. The surge is attributed to the rise in remote work and the popularity of virtual home tours, which have become a routine aspect of the buying process. The report highlights a 563% increase in views of 3D walkthroughs and a marked rise in video tours, indicating a shift in buyer behavior. Additionally, 27.8% of Redfin users were looking to relocate, reflecting ongoing migration trends.

The national median home-sale price surged by 13% year-over-year to $334,300 in December, with closed home sales increasing 16% and pending sales up 35%. New listings only rose 14%, indicating a supply shortage amidst persistent homebuying demand. Active listings saw a significant 22% decline, marking record lows. Notable metro areas like Bridgeport, CT and New Brunswick, NJ experienced significant price increases of 28% and 21% respectively. The average 30-year fixed mortgage rate stood at 2.68%.

The latest report from Redfin reveals that the median home sale price surged by 13% year-over-year, reaching $319,000 during the four-week period ending January 3. Key highlights include a remarkable 38% increase in pending home sales and a 7% rise in new listings, although active listings fell by 32%. The average sale-to-list price ratio declined slightly to 99.3%, yet remains higher than last year. Additionally, 30-year mortgage rates set a new low at 2.65%, potentially driving homebuyer demand further amid upcoming economic policies.

RedfinNow has launched its iBuying service in the Phoenix metro area, allowing homeowners to sell their properties conveniently. Sellers can receive competitive cash offers without the stress of home repairs or showings. RedfinNow complements Redfin's brokerage services, offering sellers the choice between a cash offer or traditional sale. Homeowners can select their closing date between 10 and 60 days after accepting the offer. This launch enhances Redfin's existing services, which include full-service brokerage at a low listing fee of 1%. More information is available at www.redfin.com/now.

According to a Redfin report, six out of the ten most competitive cities for home buying in 2020 are located in Washington state. Spanaway tops the list, with 68.9% of homes sold above list price and an average market stay of five days. Home prices in Spanaway increased by 20.8% year-over-year, while supply fell by 32.7%. Lacey and Tacoma follow closely, with home prices up 17.5% and 17.9%, respectively. The report highlights a shift toward suburban living due to remote work, especially as urban appeal diminishes amidst the pandemic.