Redfin Corporation - RDFN STOCK NEWS

The median U.S. asking rent rose by 0.8% year over year in May, reaching $1,653, the highest level since October 2022, according to Redfin (NASDAQ: RDFN). This marks the second consecutive monthly increase following 11 months of decreases. Washington, D.C., Cincinnati, and Chicago experienced double-digit rent growth. However, the Sun Belt areas like Jacksonville, FL, and San Diego saw declines. The report highlights that the surge in multifamily construction during the pandemic has now slowed, balancing the supply-demand dynamics. Despite the increase, rents are still $47 below the record high of August 2022. The rental vacancy rate remains stable at 6.6%, indicating a relatively balanced market.

Redfin's latest report reveals that housing markets in western Florida are cooling faster than anywhere else in the U.S., driven by rising supply and falling demand. North Port, Tampa, and Cape Coral lead this trend, influenced by increasing natural disasters, a surge in new construction, and high insurance costs. North Port's home supply increased by 68% year-over-year, with the median price per square foot dropping by 1.2%. In contrast, housing markets in Rochester and Buffalo are heating up due to relatively low prices, attracting more homebuyers. The report highlights significant regional disparities, with Florida experiencing price drops and high inventory, while areas like western New York see rising prices and lower inventory.

Home-sale prices are falling year over year in four major U.S. metros: Austin (-2.9%), San Antonio (-1.2%), Fort Worth (-1.2%), and Portland, OR (-0.9%). This marks the first instance of such declines in multiple metros since January. Nationwide, prices rose 4.4% to an all-time high during the four weeks ending June 2, but early indicators suggest this growth could slow.

6.4% of U.S. home sellers cut their asking price, the highest share since November 2022. The typical active listing has been on the market for 46 days, up 2.3% year over year. High mortgage rates and housing costs are deterring buyers, with rates recently above 7%, pushing the median monthly payment to near-record levels.

Pending home sales fell 3.8% year over year, and mortgage-purchase applications declined 4% week over week. Inventory is also losing momentum, with new listings up only 6.9% year over year, one of the smallest increases since February.

According to a recent Redfin survey, 91% of adult Gen Zers consider housing affordability a critical factor in their presidential vote, surpassing issues like the economy, abortion, and gun rights. This survey, conducted by Qualtrics in February 2024, included around 3,000 U.S. homeowners and renters. While Millennials, Gen Xers, and Baby Boomers rank the overall economy highest, at least 80% of every generation still prioritize housing affordability. Home prices have surged over 40% since the pandemic, and 2023 marked the least affordable year on record. Elevated mortgage rates have compounded these high prices, making it especially tough for young, first-time homebuyers. The median U.S. asking rent has also risen by over 20% since 2019. Redfin's Senior Economist notes that despite a strong economy, the housing market remains a major concern for young people. Presidential candidates, including Biden and Trump, have proposed plans to address housing costs.

According to Redfin, U.S. renters are staying in their homes longer due to rising housing costs and rental prices. In 2022, 16.6% of renters lived in the same home for 10 years or more, up from 13.9% a decade earlier. Renters staying 5-9 years rose to 16.4%, while 41.8% stayed 1-4 years. Only 25.2% moved within a year, down from 32.2% in 2012. Higher home-sale prices and mortgage rates have made homeownership difficult, pushing renters to stay put. Remote work trends and housing supply also contribute. Gen Z renters moved most frequently, while baby boomers stayed the longest. Major metros like New York and Los Angeles saw renters staying longer due to high costs of moving or buying. Conversely, Austin, TX had the highest move rates.

Redfin reports that 6.4% of home sellers in the U.S. reduced their asking prices in the four weeks ending May 26, 2024. This is the highest percentage since November 2022, suggesting a potential softening in sale-price growth due to high mortgage rates. The median asking price dropped by $3,000 to $416,623, the first decline in six months. However, the median sale price hit a record high of $390,613, up 4.3% year-over-year. Despite this, pending sales fell by 3.4%, and mortgage-purchase applications are near their lowest level in six months. The median monthly mortgage payment is now $2,812, down from peak levels as mortgage rates recently dipped below 7%. Inventory is growing stale, and listing growth has slowed. Redfin advises buyers to consider less trendy neighborhoods or condos to avoid bidding wars.

Redfin (NASDAQ: RDFN) announced that CFO Chris Nielsen will present at the BofA Securities 2024 Global Technology Conference on June 5 at 10:00 a.m. PT.

The live webcast and replay will be accessible via the investor relations page on Redfin's website.

The latest Redfin report reveals that the median U.S. home-sale price has hit a record $387,600 during the four weeks ending May 19, marking a 4% increase from the previous year.

Despite rising prices, pending home sales dropped by 4.2% year-over-year due to high housing costs and inventory.

Mortgage rates have slightly declined, with the weekly average at 7.02%, reducing the median monthly housing payment to $2,854.

New listings are up 8%, but overall inventory remains lower than typical spring levels, with many homeowners reluctant to sell due to high interest rates.

Redfin's data indicates a mixed housing market, with some metros experiencing significant price increases and others seeing decreases in pending sales and new listings.

Redfin's latest report reveals U.S. home prices increased by 0.5% in April from the previous month and 7.3% year-over-year. Despite high mortgage rates curbing buyer demand, home prices continue to rise due to inventory. The Redfin Home Price Index, which provides seasonally adjusted price changes, shows a stable growth rate similar to pre-pandemic levels. New listings have seen some increase but remain 20% below pre-pandemic levels. Many homeowners are reluctant to sell, feeling 'locked in' by low pandemic-era mortgage rates. Some buyers are exploring multifamily homes to manage payments. Mortgage rates recently dipped below 7%.