Redfin Corp Stock Price, News & Analysis

Redfin has released a comprehensive analysis of real estate commissions, revealing that the average commission for U.S. home sellers in 2020 was 2.7%, only a slight decrease from 2.8% in 2012. The company anticipates a further decline in fees starting in 2021 as seller commission data becomes more accessible due to a DOJ and NAR antitrust settlement. Redfin has already begun showing commission rates on over 700,000 listings. The report notes that the housing market's high demand is prompting some sellers to offer lower commissions, while iBuyers are also contributing to this trend by reducing commission rates.

In January 2021, 30.7% of Redfin.com users sought to move to a different metro, a significant increase from 25.9% in January 2020. This trend marks the highest migration share since tracking began in 2017. Key cities like Bend, Boise, and Charleston saw a twofold increase in new homebuyers, driven by residents leaving high-cost areas. For instance, Bend recorded a net inflow of 1,591 users, while Boise had 1,058. The data reflects a growing preference for affordable locations amid rising home prices in coastal cities, highlighting a shift in housing dynamics.

Redfin Corporation (RDFN) reported a 4Q 2020 revenue of $244.5 million, a 5% increase year-over-year. Gross profit soared to $80.1 million, up 102% from $39.6 million in 4Q 2019, with a 41% gross margin. Net income was $14.0 million, reversing a net loss of $7.8 million in the prior year. For the full year, revenue reached $886.1 million, a 14% increase, while net loss narrowed to $18.5 million from $80.8 million in 2019. The company gained market share, reaching 1.04% of U.S. existing home sales by value.

The national median home-sale price rose 14% year-over-year to $330,500 in January 2021, as reported by Redfin. Closed home sales surged 20% from the previous year while pending sales jumped 37%. Despite a 6% decline in new listings, the demand remained high, leading to competitive bidding wars. The largest price increases were seen in Camden, NJ (+29%) and Allentown, PA (+26%). Active listings fell 24% year-over-year, marking the lowest supply level on record, intensifying market competition.

Redfin has announced an acquisition of RentPath for $608 million in cash, aiming to enhance its real estate services. RentPath operates popular rental websites including ApartmentGuide.com and Rent.com, attracting over 20,000 apartment listings and 16 million monthly visitors. This acquisition is expected to double Redfin's audience, integrating rental options with home-buying services. RentPath reported $194 million in revenue for 2020, highlighting a growth trajectory of 25% in traffic. Redfin anticipates the rental listings to be included on its platform by late 2022.

Redfin (NASDAQ: RDFN) announced that CFO Chris Nielsen will present at the Wedbush Real Estate Technology Conference on March 4, 2021. The event will be virtual, and a replay will be available at investors.redfin.com. Founded in 2006, Redfin is a technology-driven residential real estate company that integrates various services including brokerage, iBuying, and mortgage. The company has saved customers over $800 million and facilitated transactions of over $115 billion in home sales while operating in more than 90 markets across the US and Canada.

Redfin (NASDAQ: RDFN) has begun publishing flood risk data for homes across the contiguous U.S., providing homeowners and buyers with a Flood Factor® score from 1 to 10. This initiative, launched in partnership with the First Street Foundation, aims to enhance consumer awareness of potential flood risks. The Flood Factor score reflects cumulative flood risk over a 30-year mortgage, addressing the increasing impact of climate change. The feature is available for over 94 million homes on Redfin's platform, assisting users in making informed real estate decisions.