Redfin Corp Stock Price, News & Analysis

As of December 2020, 24.3% of homes sold in the U.S. were purchased with cash, a decrease from 25.3% in 2019, marking the lowest percentage since 2007. Reflected in a report by Redfin, this trend signals a shift driven by lower mortgage rates averaging 2.71%. Chief economist Daryl Fairweather suggests buyers prefer loans due to low interest rates, opting to invest cash elsewhere. In Nassau County, cash purchases soared to 48.9%, indicating regional variations in buying behavior amidst the pandemic.

The national median home price increased by 14.0% year over year to $335,519 in November, according to a recent report from Redfin. This marks a significant surge driven by high demand amid limited housing supply. Closed home sales rose 23% year-over-year, while pending sales increased by 37%. Active listings fell 23%, marking an ongoing decline that affects market dynamics. The number of homes sold above list price reached a record 35%. Overall, these trends suggest an exceptionally competitive housing market.

According to a Redfin report, 53.6% of home offers by Redfin agents experienced competition in November 2020, down from 58.5% in October. This marks the seventh consecutive month where over half of offers faced bidding wars, attributed to low mortgage rates and a housing shortage. San Diego led with a 75.3% bidding-war rate, while Minneapolis had the lowest at 34.6%. Condominiums were less likely to face competition, with 38.3% of offers contending. Year-over-year, new listings in San Diego grew by 13% in November.

Redfin's report predicts a robust housing market in 2021, driven by a slow economic recovery post-pandemic. Key forecasts include mortgage rates rising to about 3%, home sales exceeding 2006 levels, and an increase in new home construction. Over 14.5 million Americans are expected to relocate, boosting affordable cities' economies. The homeownership rate is projected to surpass 70%, and a shift to online buying practices will increase competition among real estate agents. This comprehensive analysis suggests a dynamic year for the real estate sector.

In a recent report, Redfin revealed that home values in Paradise, California, plummeted by 20.5% year-over-year to $136,000 in October 2020, marking the steepest decline in the U.S. This downturn is attributed to the aftermath of the 2018 wildfires, which devastated the region. The report highlighted that the pandemic has stunted the rebuilding of homes, with most available properties being empty lots. Additionally, other areas also saw significant declines, such as Sandusky, Ohio, and Portland, Oregon, with home values decreasing by 9.3% and 7.5%, respectively.

Pending home sales in U.S. counties with low Covid-19 cases rose 54.1% year over year, outpacing 45.1% growth in high-case counties, as reported by Redfin. The analysis covered 116 U.S. metropolitan areas for the period ending Dec. 1, 2020. New listings grew 20.6% in low-case areas compared to 12.8% in high-case areas. Active listings fell 41.2% in low-case counties. The average sale-to-list price ratio increased to 100.2% in low-case areas. The demand for homes declined in high-case regions, suggesting potential price drops for sellers.

Redfin Corporation (NASDAQ: RDFN) announced that CFO Chris Nielsen will present at the Piper Sandler P.S. It's Friday Series virtual event on December 11, 2020, at 11:00 a.m. ET. The live webcast and replay will be available on Redfin's investor website. Redfin is a technology-driven residential real estate company, integrating home buying and selling services, including brokerage and iBuying. They serve over 90 markets in the U.S. and Canada, saving customers over $800 million since 2006.

Redfin (RDFN) has launched its iBuying service, RedfinNow, in the Seattle and San Francisco metro areas, introducing a new selling option for homeowners. This service allows sellers to request cash offers directly from Redfin without needing to make home repairs or host showings. Homeowners can choose their closing date, providing flexibility for purchasing their next property. This expansion aligns with Redfin's strategy to offer comprehensive selling solutions and follows successful launches in various Californian cities. Redfin aims to help sellers make informed decisions by providing multiple selling options.