Redfin Corp - RDFN STOCK NEWS

Redfin reports that falling mortgage rates have made housing payments more affordable than a year ago, despite higher home prices. The median U.S. monthly housing payment was $2,558 during the four weeks ending September 8, down 1.3% year-over-year. This is due to mortgage rates dropping to their lowest level in over a year. However, home prices remain elevated at a median of $388,085, up 3.7% annually.

Pending home sales are down 7.8% year-over-year, the biggest decline in nearly a year. Factors contributing to this include high home prices, confusion about new NAR rules, and buyers waiting for further rate decreases. Despite this, early-stage demand indicators are showing signs of improvement, with Redfin's Homebuyer Demand Index near its highest level since May.

Redfin reports that median U.S. asking rent rose 0.9% year over year in August to $1,645, marking the biggest annual increase since April 2023. Despite this rise, rents remain 3.2% below the all-time high set two years ago. The report highlights:

- 0-1 bedroom apartments: up 0.1% to $1,495
- 2 bedroom apartments: unchanged at $1,725
- 3+ bedroom apartments: down 1.7% to $2,008

Rental affordability has improved due to lower rents and wage growth of 3.8% year over year. The construction boom, especially in Sun Belt states, has led to supply outweighing demand in some areas. Austin, TX saw the steepest rent decline at 17.6% year over year, while Virginia Beach, VA experienced the largest increase at 15.2%.

Redfin (NASDAQ: RDFN) reports that commission negotiations have become more common in some markets and for higher-priced homes following new National Association of Realtors rules. The impact varies by location, with slow markets seeing little change and competitive markets experiencing more fee discussions. Most sellers are still willing to cover buyer's agent fees, but some are now asking buyers to make their best offer.

Key findings include:

• Typical buyer's agent commission slightly decreased to 2.55%
• Buyers are confused about signing fee agreements before home tours
• Luxury market sees more pressure on commissions
• Sellers are evaluating fee strategies based on market conditions
• Some listing agents are finding creative ways to communicate fee offers

Redfin (NASDAQ: RDFN) has announced the nationwide expansion of its Redfin Next agent compensation plan, effective October 27th. This plan offers agents competitive commission splits up to 75%, covers virtually all business expenses, and provides technology, support, benefits, and customer introductions from Redfin.com. The expansion follows strong business and recruiting results in initial markets.

Key features of Redfin Next include:

• Big splits with zero expenses
• Access to over 100 potential customers annually
• Comprehensive business support and technology
• Top-tier benefits package

Redfin reports that rental affordability has improved for college graduates in the Bay Area. In San Jose, recent grads now spend 27.8% of their income on rent for a 2-bedroom apartment with a roommate, down from 30.9% in 2023. Similar improvements are seen in San Francisco and Sacramento. The Bay Area boasts the highest salaries for college grads nationwide, with San Jose leading at $108,499.

Nationally, the typical U.S. college grad spends 20.6% of income on rent with a roommate, down from 22.6% last year. This improvement is attributed to falling rents and rising wages. Austin, TX is now affordable for grads living alone, with rent costs dropping to 28.3% of income from 35.2% last year. Cincinnati, Houston, and Austin are the most affordable metros for recent grads sharing apartments.

Redfin reports that the median U.S. monthly housing payment has fallen to $2,534, the lowest since January, due to declining mortgage rates. Despite this, pending home sales dropped 8.4% year-over-year, the largest decline in nearly a year. Some buyers are waiting for further rate drops or clarity on new NAR rules before purchasing.

Key points:

• Mortgage rates at lowest level in 1.5 years
• Mortgage-purchase applications up 3% week-over-week
• Redfin's Homebuyer Demand Index up 4% from a month ago
• New listings up 3.7% year-over-year
• Total listings up 16.6% year-over-year

The market shows signs of increased buyer interest, but many remain cautious due to industry changes and economic uncertainty.

Redfin reports a significant slowdown in the condo market across major Florida and Texas metros, with rising inventory and declining sales. Key findings include:

• In Tampa, condo inventory increased 57.2% year-over-year in July, while pending sales dropped 18.9% and median prices fell 4.9%.
• Houston saw a 35.9% increase in condo inventory, a 35.3% decrease in pending sales, and a 6.5% price drop.
• Factors contributing to this trend include surging HOA fees, increasing insurance costs due to climate disasters, and a new construction boom.
• Investors are less interested in condos, with nationwide investor purchases falling 3% year-over-year in Q2.

While the national condo market is also slowing, with pending sales down 5.5% year-over-year in July, prices are still up 3.9% nationally.

Redfin (NASDAQ: RDFN) has announced that its Chief Financial Officer, Chris Nielsen, will be presenting at the Goldman Sachs Communacopia & Technology Conference. The event is scheduled for Monday, September 9, at 10:10 a.m. PT. This presentation marks an important opportunity for Redfin to showcase its financial strategies and technological innovations to a significant audience in the investment community.

Interested parties can access a live webcast of the presentation, as well as a replay, through Redfin's investor relations website at http://investors.redfin.com. This accessibility ensures that both attendees and remote stakeholders can gain insights into Redfin's current position and future outlook in the real estate technology sector.

Redfin's latest report reveals that homebuyers need to earn $79,252 annually to afford the typical U.S. starter home, a 4.4% increase from last year. The monthly housing payment for a starter home reached $1,981 in July, up 4.4% year-over-year. This affordability challenge is driven by elevated mortgage rates (averaging 6.85% in July) and near-record home prices, with the typical starter home selling for a record $250,000 in July, up 4.2% from the previous year.

The report highlights that in half of the 50 most populous U.S. metros, median-income families cannot afford a starter home. Southern California faces the biggest affordability gap, with Anaheim and Los Angeles requiring double the local median income to purchase a starter home. Conversely, Rust Belt cities like Detroit offer the most affordable starter homes relative to local incomes.