Redfin Corp - RDFN STOCK NEWS

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.

Redfin reports that pending home sales fell 6.9% during the four weeks ending August 25, the largest annual decline in nearly a year, despite the median monthly U.S. housing payment falling to its lowest level since February. Many potential homebuyers are hesitant due to factors such as:

• Uncertainty about the NAR settlement and new agent fee rules
• Expectations of lower home prices
• Hopes for further mortgage rate decreases
• Political uncertainty surrounding the upcoming presidential election

Despite these challenges, mortgage-purchase applications increased 1% week-over-week, suggesting some buyers are entering the market. The median sale price rose 3.6% year-over-year to $389,975, while new listings increased by 3%.

Redfin reports that the typical down payment for U.S. homebuyers reached a record high of $67,500 in June, up 14.8% from a year earlier. This marks the 12th consecutive month of year-over-year increases in median down payments. The typical down payment was 18.6% of the purchase price, the highest level in over a decade.

Nearly three in five (59.4%) homebuyers put down more than 10% of the purchase price. Factors contributing to this trend include rising home prices, elevated mortgage rates, and increased equity from previous home sales. All-cash purchases made up 30.7% of home sales, slightly up from last year. FHA loans fell to their lowest level in nearly two years, representing 13.7% of mortgaged sales.

Redfin reports that 85.7% of U.S. homeowners with mortgages have an interest rate below 6%, down from 90.6% at the start of last year and a record high of 92.8% in mid-2022. This 'lock-in effect' is contributing to America's housing shortage as homeowners hesitate to sell and buy at higher rates. The breakdown shows:

• 76.1% have a rate below 5%
• 57.4% have a rate below 4%
• 22% have a rate below 3%

The lock-in effect is easing slightly as some homeowners are forced to move due to life events or have enough equity to justify selling. The current average weekly mortgage rate is 6.46%, the lowest in 15 months, but still significantly higher than the pandemic-era low of 2.65%.