Redfin Corp Stock Price, News & Analysis

The national median home price rose 14.2% year-over-year to $335,900 in October, marking the second-largest annual increase recorded. Home sales surged 24% compared to last year, the largest gain on record, with new listings up only 12%. Active listings fell 22%, indicating a significant supply-demand imbalance. Major price increases were observed in Bridgeport, CT (+39%) and Memphis, TN (+30%). Analysts suggest a potential cooling in demand due to the pandemic, although competition remains high, with 35% of homes selling above list price.

Demand for second homes in the U.S. surged by 100% year-over-year in October 2020, according to a Redfin report. This continued trend marks the fourth consecutive month of triple-digit increases, compared to a 50% rise in primary home demand. Factors supporting this growth include record-low mortgage rates and a shift to remote work. However, this demand contrasts sharply with the financial struggles faced by many Americans due to the pandemic, highlighting a growing divide in the housing market.

In October, 56.8% of Redfin offers on homes faced competition, slightly down from 57.4% in September. This marks the sixth consecutive month of bidding rates exceeding 50%. Despite a recent peak of 59.3% in August, market competition remains robust, fueled by low mortgage rates and housing shortages. Home prices increased by 15% year-over-year in early November. Salt Lake City was the most competitive market at 75%, while Las Vegas recorded the least at 38.2%. Condos are seeing less competition, with only 41.4% of offers encountering bids.

According to a Redfin report, second-home destinations are increasingly becoming full-time residences as remote work persists. El Dorado County, CA leads the ranking of heated markets with a 16% year-over-year increase in median sale price, while Deschutes County, OR follows at 18%. Notably, regions like the Jersey Shore are experiencing a surge of buyers from urban areas, driving competition and prices higher, with some sales exceeding asking prices by $75,000. Conversely, New York City's boroughs, including Queens and Brooklyn, are cooling down, with significant outflows of residents seeking affordable housing.

Redfin Corporation (NASDAQ: RDFN) announced participation in two investor conferences this November. Chief Financial Officer Chris Nielsen will present at the RBC Capital Markets Global Technology Conference on November 17 at 10:40 a.m. ET and at the Stephens Annual Investment Conference on November 19 at 3:00 p.m. ET. Redfin integrates technology with real estate services, offering brokerage, iBuying, mortgage, and title services across over 90 markets in the U.S. and Canada. Since 2006, Redfin has saved clients over $800 million while facilitating transactions of more than 235,000 homes worth over $115 billion.

Redfin Corporation (NASDAQ: RDFN) reported Q3 2020 revenue of $237 million, a 1% decline year-over-year. However, gross profit surged 74% to $93 million, driven by a 70% increase in real estate services gross profit. Net income reached $34.2 million, significantly up from $6.8 million in Q3 2019, resulting in diluted EPS of $0.30. Operating expenses grew by 22% to $56 million, accounting for 24% of revenue. Redfin achieved a market share of 1.04% in U.S. existing home sales and saved customers over $61 million. The company plans to expand its workforce to meet rising demand.