Redfin Corp - RDFN STOCK NEWS

Redfin's 2023 Housing Market Predictions indicate a challenging year ahead, with home sales expected to decline by 16% to 4.3 million, the lowest since 2011, primarily due to high mortgage rates and affordability issues. Mortgage rates are forecasted to drop to 5.8% by year-end, offering some relief. Home prices may decrease by 4%, marking the first annual decline since 2012. Despite these trends, a surge in foreclosures is unlikely due to strong homeowner equity and a stable job market.

Redfin has become the first real estate site to showcase zoning and land use details on over 70 million home description pages across the U.S. and Canada. This feature, developed through a partnership with Zoneomics, offers users insights into local zoning laws, helping them understand property usage regulations. It includes a zoning summary and a list of permitted and conditional land uses. The feature aims to provide consumers with essential real estate data, enhancing the homebuying experience. It is available for nearly 3,900 cities and will expand to mobile platforms soon.

Redfin reports a record 2% of U.S. homes for sale were delisted weekly during the 12 weeks ending Nov. 20, up from 1.6% the previous year. This trend is driven by decreased buyer demand due to high home prices and rising mortgage rates. Sacramento, Austin, and Seattle are experiencing the largest increases in delistings. Median mortgage payments are 40% higher than a year ago, leading many sellers to withdraw listings after receiving no offers. Market dynamics suggest a cooling period in previously hot areas.

Redfin reports that homebuying demand is increasing as mortgage rates decline, which dipped to 6.29% on December 1. The Homebuyer Demand Index rose 1.5% from a month ago, while mortgage purchase applications increased 4%. However, pending home sales fell 35.5% year over year, marking the largest decline since early 2015. Home prices are declining in 10 of the 50 largest U.S. metros, with significant drops noted in cities like San Francisco (8.2%) and San Jose (2.8%). The months of supply reached 4.1, the highest since May 2020.

According to Redfin's latest report, 24.1% of U.S. homebuyers are considering moving to different metro areas, nearing a record high. This increase stems from high mortgage rates and housing prices, prompting buyers to seek affordable locations. The average 30-year mortgage rate reached 6.9% in October. Popular destinations include Sacramento, Las Vegas, and Miami, with many buyers leaving expensive cities like San Francisco and New York. Despite challenges like Hurricane Ian, Florida remains a favored relocating state.

Redfin (NASDAQ: RDFN) reports a significant slowdown in home price growth in major metropolitan areas, notably Austin, Phoenix, and Boise. Year-over-year price growth has decelerated by up to 23 percentage points from February to October 2022, severely impacted by rising mortgage rates and a cooling economy. Median home prices in these markets surged over 30% during the pandemic, but affordability issues are shifting the market dynamics toward a buyer's market, allowing first-time buyers to negotiate better deals.

Redfin (RDFN) reported an uptick in mortgage-purchase applications and a 1.6% rise in its Homebuyer Demand Index, attributed to a decrease in 30-year mortgage rates from 7% to 6.58%, saving buyers over $100 monthly. However, pending sales saw a record annual decline of 35.2%. The median home sale price increased 2.1% year-over-year to $356,149, but the smallest growth since the pandemic began. Additionally, active listings rose 11.6%, the highest increase noted since 2015, indicating a growing supply amid decreased demand.

According to a recent report from Redfin (RDFN), investor home purchases across the U.S. fell by 30.2% year-over-year in Q3, the largest decline since the Great Recession. This downturn outpaced the 27.4% drop in overall home purchases. In dollar terms, investors spent $42.4 billion on homes, down 30.5% from the previous quarter. Major declines occurred in markets like Phoenix (-49.4%), Las Vegas (-44.8%), and Portland (-47.4%). Investors lost market share, with only 17.5% of all homes purchased being investor buys.

Mortgage rates fell from 7.08% to 6.6%, marking the largest weekly drop since 1981. This decline is expected to provide relief to homebuyers, increasing affordability, with buyers gaining $12,000 more purchasing power. However, pending home sales remained down 35% year-over-year, signaling continued pressure on the housing market. The typical monthly mortgage payment decreased to $2,430. Despite the positive rate drop, the overall homebuying interest remains stagnant, with no immediate uptick expected.