Redfin Corp - RDFN STOCK NEWS

Redfin (RDFN) reports a notable increase in homebuyer activity as mortgage rates fall below 6%, allowing buyers with a $2,500 monthly budget to afford homes priced up to $400,000. For the week ending February 2, the average mortgage rate dipped to 5.99%, marking the first sub-6% rate since September. Pending home sales have shown improvement, with a decrease of only 23% year-over-year, the smallest drop in four months. New home listings also declined 17% year-over-year, but this is the smallest decline in four months. Redfin's Homebuyer Demand Index shows a 19% uptick from previous lows, indicating an ongoing recovery in the housing market.

Redfin Corporation (NASDAQ: RDFN) will announce its fourth-quarter 2022 results on February 16, 2023, after market close. A live webcast to discuss these results will take place at 1:30 p.m. PT / 4:30 p.m. ET. Investors can access the webcast on Redfin's Investor Relations website. Redfin is a technology-driven real estate company, established in 2006, providing services in brokerage, rentals, lending, title insurance, and renovations. It operates in over 100 U.S. and Canadian markets, employing over 5,000 people and has saved customers more than $1 billion in commissions.

Redfin reports a significant drop in housing payments, with San Francisco seeing a 14.8% decrease since October, the largest among U.S. metros. The typical payment fell from $9,973 to $8,496, while nationwide payments declined 7% to $2,500. This decline supports a rise in homebuyer demand—a 3% increase in pending sales in December, the first rise in 14 months. The average 30-year mortgage dropped from 6.9% to 6.36%. However, prices are still high compared to last year, and economic factors continue to challenge tech workers in areas like San Francisco and Seattle.

Redfin has launched a new feature called Favorites Lists, allowing users to organize their favorite homes into customized lists and share them with search partners. This tool enhances the user experience by enabling homebuyers and renters to streamline their property searches. Notably, approximately 70% of Redfin app users have favorited at least one home, while nearly 40% have compiled lists of over 30 homes. The tool is available for all property types on Redfin.com and the iOS app, with Android support expected later this year.

Redfin reported a 26% year-over-year decline in pending home sales for the four weeks ending January 22, the smallest drop in over three months. This increase in sales aligns with a decrease in mortgage rates, now at 6.1%, down from a peak of 7%. Demand indicators are improving, with mortgage applications up 28% since November and home-tour requests rising. The median home sale price increased by 1.1% year over year to $350,000. Despite 17 out of 50 major U.S. metros experiencing price drops, signs of a stabilizing market are emerging as buyer confidence returns.

Redfin reports a recovery in the housing market following a low in November. Homebuyer activity has increased, with requests for tours up 17% and contact with agents up 13% compared to November. While home tours and service requests are down 23% and 27% year-over-year, they show marked improvement from November's declines. Bidding wars are re-emerging in markets like Seattle and Florida, though overall demand is still lower than in early 2022. Mortgage rates have dropped to an average of 6.15%, reducing monthly payments by around $180. New listings fell 18% year-over-year as sellers remain cautious amid fluctuating buyer demand.

In Q4 2022, 24.6% of Redfin users sought to relocate to different metro areas, a rise from 22.1% the previous year, driven by remote work and high mortgage rates. However, overall homebuyer activity decreased, with pending home sales dropping over 30% YoY. The most popular relocation destinations included Sacramento and Las Vegas, both experiencing declines in net inflow. Economic uncertainty and elevated mortgage rates have restrained home sales, as many homeowners are hesitant to move due to low existing mortgage rates. Notably, San Francisco and Los Angeles saw significant net outflows as residents seek more affordable living options.

The latest data from Redfin reveals a 0.9% increase in the median U.S. home-sale price, now at $350,250, marking a significant monthly rise. The decline in mortgage rates to 6.15% has boosted mortgage applications by 25%. Although pending home sales dropped by 29% year-over-year, this is the first sub-30% drop in three months. New home listings fell by 20%, but the decrease is less severe than in previous months. Despite these positive trends, demand remains fragile as buyers continue to navigate the effects of inflation and potential rate hikes.

The housing market is experiencing the slowest sales pace since April 2020, with pending home sales at a record low, down 32% year-over-year. The average time a home stays on the market is 44 days, with inventory increasing. Despite high mortgage rates, early signs of demand are emerging with a 6% rise in Redfin's Homebuyer Demand Index and increased Google searches for homes for sale. The typical U.S. home price rose to $351,250, up 0.8% from last year but down 10% from June's peak. Notably, mortgage rates have declined to 6.33%, potentially reinvigorating buyer interest in 2023.