Redfin Corp Stock Price, News & Analysis

The median home sale price in the U.S. soared by 14% from 2019, reaching a record high of $319,978, according to a report by Redfin as of September 25, 2020. This increase is the largest since August 2013. Key takeaways include a 6.6% rise in home prices since July, 29% growth in pending home sales year over year, and a 28% decrease in active listings compared to 2019. The Redfin Homebuyer Demand Index showed a remarkable 28.4% increase from pre-pandemic levels, indicating sustained demand amidst limited supply.

In August, new listings of newly-built homes decreased by 4.1% year-over-year to a seasonally-adjusted rate of 74,000, reversing a previous increase in July. In contrast, new listings of existing homes rose by 5.2%. Sales of newly-built homes increased 8.3% year-over-year, though this was slower than previous months. The supply of newly-built homes fell 33.6% to 185,000 units. Median prices for newly-built homes reached $378,000, marking a 4.1% rise. Builder confidence remains high despite challenges related to labor and lumber shortages, impacting production.

According to Redfin's latest migration report, 28.7% of Redfin.com users sought to relocate to different metro areas in July and August 2020, marking a rise from 27.4% in Q2. This is the highest rate recorded since tracking began in 2017. Notably, areas like Sacramento and Austin saw significant net inflows as buyers left expensive coastal cities, thanks to remote work options. Median home prices are rising sharply across these regions, with Sacramento up 11.4% to $468,000. Conversely, cities like New York and San Francisco experienced the largest net outflows as residents seek affordable housing.

Redfin's latest report reveals that nine of the ten housing markets with the most significant buyer competition are priced below $500,000, showing over 10% price growth in the past year. El Dorado County, CA, leads the list with a 60% increase in home sales, despite its median price being $550,000. Conversely, major cities like New York and San Francisco are cooling down, with the Bronx experiencing a 43% drop in home sales. The report highlights shifting buyer preferences, with remote work driving demand for more affordable suburban areas.

The median home price in blue counties rose 13.1% to $346,000 during the four weeks ending September 6, 2020. Prices increased 11.5% in swing counties to $259,500, and 10.6% in red counties to $209,000. Housing supply tightened significantly, with active listings down nearly 35% in swing counties, 32% in red counties, and 22.2% in blue counties. Homes sold fastest in swing counties, with 43.5% going under contract within two weeks. Sales increased most in red counties by 15.9%. Notably, homes in blue counties sold closest to their asking price, at 99.3% of list price.

The national median home price rose 11.0% year-over-year to $328,400 in August, marking the largest increase since February 2014. Driven by low mortgage rates, homebuyer demand remains strong, although home supply is at a record low, with active listings down 22% year-on-year. Home sales increased by 10.2% compared to last year, with significant gains in areas like Bridgeport, CT. The competitive market shows a 32.0% of homes sold above list price, indicating a robust seller's market. New listings rose by 4.6% from the previous year, yet the supply-demand imbalance persists.

The Las Vegas housing market saw a 7.8% year-over-year increase in typical home-sale prices, reaching $310,000 in August 2020. Notably, 41% of homes sold within two weeks, a rise from 28.3% last year. Despite a 16.4% unemployment rate in the area, demand remains strong due to an influx of remote workers from high-cost states. Pending home sales increased 12.8%, while the number of homes for sale fell 18.7%. The pandemic has shifted local buyer needs, prompting demand for larger spaces and low mortgage rates.