Redfin Corporation - RDFN STOCK NEWS

Pending home sales in the U.S. experienced a significant decline of 35% year-over-year during the four weeks ending October 23

This marks the lowest number of homes under contract for any October since 2015. Key indicators of homebuying activity include a rise in 30-year mortgage rates to 7.08% and a 42% year-over-year drop in mortgage purchase applications. The median home sale price is $365,725, 5% higher than last year but down 7% from June's peak. Six metro areas report year-over-year price declines, highlighting a cooling housing market.

Redfin reports a significant slowdown in home sales and new listings due to rising mortgage rates, now nearing 7%. Home sales have dropped over 30% year-over-year, while new listings are down almost 20%. Redfin economists advise caution for homebuyers, suggesting those who must buy now should avoid stretching their budgets. They recommend negotiating lower offers, especially for homes on the market for extended periods. The report emphasizes that cash buyers have a better negotiating position, while those in unstable job situations should consider renting.

Redfin Corporation (NASDAQ: RDFN) will disclose its third-quarter 2022 results on November 9, 2022, post-market close. A live webcast of the results discussion will begin at 1:30 p.m. PT / 4:30 p.m. ET, accessible via Redfin's Investor Relations website. Redfin, a tech-driven real estate firm, offers various services including brokerage and iBuying, and operates in over 100 markets in the U.S. and Canada. Since 2006, it has saved customers more than $1 billion in commissions.

Redfin reports a significant decline in the U.S. housing market, with pending home sales and new listings dropping sharply year-over-year, reflecting levels similar to April 2020. Mortgage applications reached a 25-year low, as rates hit a 20-year high of 6.94%. Homes are taking longer to sell, and a record number of sellers are reducing prices. The median home sale price remained steady at $367,083, while the median asking price for newly listed homes increased to $378,225. The current market conditions indicate a challenging environment for home buyers and sellers.

Redfin reports a dramatic 58% drop in pending home sales in the Cape Coral, FL metro area for the four weeks ending October 16, substantially outpacing the national average decline of 32%. Nearby areas Naples and North Port also saw significant decreases of 52% and 51% respectively. New listings fell 59% in Cape Coral, 53% in Naples, and 40% in North Port. Despite a surge in home prices, the overall housing market in Southwest Florida is cooling, impacted heavily by Hurricane Ian.

Redfin reported significant declines in the housing market for September, with home sales dropping by 25% year-over-year and new listings falling by 22%. Approximately 60,000 deals were canceled, representing 17% of contracts—the highest rate since March 2020. The median home-sale price was $403,797, an 8% increase year-over-year, despite a 0.5% month-over-month decrease. Rising mortgage rates have curtailed buyer demand, leading to fewer competitive offers. Redfin’s Economics Research Lead expects further deterioration in the housing market amid persistent inflation and ongoing interest rate hikes from the Federal Reserve.

Redfin reports significant shifts in the housing market as rising mortgage rates and changing buyer preferences have led to a fall in urban home prices. As of September 25, suburban homes are valued at $206 per square foot, surpassing urban areas at $205. Urban home prices grew by only 3.5% year-over-year compared to 9.5% in suburbs. Sales are down across all types, with urban listings decreasing by over 15%. Notably, cities like San Francisco and New Orleans experienced the sharpest declines in price per square foot.

Redfin has expanded its services to Wilmington, North Carolina and Green Bay, Wisconsin, providing homebuyers and sellers access to experienced agents and innovative technology. Customers can utilize Redfin's platform for home searches, on-demand tours, and valuations. The company has saved clients over $1 billion in real estate commissions and operates in more than 100 markets across the U.S. and Canada. Redfin agents, who are salaried employees, offer services including digital marketing, professional photography, and competitive listing fees, enhancing overall customer experience.