Redfin Corporation - RDFN STOCK NEWS

In August, approximately 64,000 home purchase agreements fell through, marking a rise to 15.2% of total contracts. This increase from 12.1% a year ago reflects a significant shift in the housing market, especially in Sun Belt cities like Phoenix, Tampa, and Las Vegas, where buyers are exercising greater flexibility. High mortgage rates, peaking at 6.29%, may be contributing to buyers' hesitance. Jacksonville, FL recorded a call-off rate of 26.1%, the highest among major cities. These trends indicate a cooling market, contrasting last year’s competitive environment.

In August, only 44.6% of home offers made by Redfin agents faced competition, representing a significant decline from 63.5% a year earlier and marking the lowest rate since the pandemic's onset. The typical home in a bidding war garnered 3.2 offers, down from 5 a year prior. High mortgage rates, now around 6%, are driving buyers from the market, contributing to a nearly 20% year-over-year drop in home sales. San Antonio, Tampa, and Phoenix reported the lowest bidding-war rates, while Philadelphia experienced the highest at 61.7%. The market shift reflects changing buyer dynamics and escalating costs.

Home prices in the U.S. increased by 1% over the last two weeks after 11 weeks of decline, as mortgage rates surpassed 6%. According to Redfin, buyer demand has significantly cooled due to the Federal Reserve's interest rate hikes, but new listings have also dropped sharply. The median home sale price is now $371,850, an 8% increase year-over-year. Notably, 34% of homes sold were above list price, down from 47% last year. The months of supply hit a 27-month high, indicating a shift in the market dynamics, with fewer sellers willing to list their homes.

Sales of luxury U.S. homes dropped 28.1% year-over-year for the three months ending August 31, 2022, marking the sharpest decline since 2012, according to Redfin's report. Non-luxury home sales also fell 19.5%. Rising interest rates, inflation, and economic uncertainty are driving this retreat, with the average 30-year mortgage rate exceeding 6%. Luxury home prices rose 10.5%, significantly slower than the 20.3% increase a year ago. The supply of luxury homes decreased 1.9% year-over-year, but new listings rose by 1.2%, indicating easing market conditions.

Redfin (NASDAQ: RDFN) has expanded its services into Hilton Head, South Carolina, allowing local consumers to buy and sell homes with Redfin agents. The company is now providing a complete home-selling service that includes a 1% listing fee for clients selling and buying simultaneously. Additionally, Redfin's listing search has extended to cover an estimated 570 counties, now reaching over 95% of the U.S. population. Clients can access high-resolution 3D home tours and receive instant notifications on new listings, enhancing their home search experience.

The latest report from Redfin indicates that U.S. asking rents reached a record high of $2,039 in August, marking an 11% year-over-year increase. However, this growth has moderated for the third month in a row, with only a 0.4% rise month-over-month, the slowest since December 2021. The Federal Reserve's interest rate hikes are expected to further slow rent growth as they dampen renters’ budgets. A significant rental supply is anticipated, with nearly one million units under construction. Cincinnati, Pittsburgh, Indianapolis, and Nashville saw the largest rent increases, exceeding 20%.

Seattle's housing market is experiencing the fastest slowdown in the U.S. due to rising mortgage rates, inflation, and economic uncertainty, according to a Redfin report. The analysis ranks the top 100 U.S. metros based on multiple housing metrics. Seattle, followed by Las Vegas, San Jose, and others, shows significant drops in homebuyer demand and sales prices. In August, homes sold for 2% less than the previous month, while typical home prices are causing buyers to retreat. Although affordability issues persist, the shift grants negotiating power to buyers still in the market.

A record 33.9% of Redfin.com users sought to relocate between metro areas in July and August, up from 32.6% in Q2, as high mortgage rates and inflation drive homebuyers from expensive markets to more affordable regions. Home sales are down 20% year-over-year, with remote workers significantly influencing migration patterns. Major cities like San Francisco, Los Angeles, and New York experienced substantial outflows, while Miami remains the most popular destination. The average home price in Las Vegas was $416,000, notably lower than that in Los Angeles at $845,000.