Redfin Corp - RDFN STOCK NEWS

Redfin's recent report highlights that housing markets in affordable Midwest and East Coast areas are stabilizing amid rising mortgage rates and economic uncertainty. Lake County, IL tops the list of resilient markets, followed by Albany, NY, and Chicago. The majority of these markets feature lower-than-national median home prices. Despite challenges, homebuyer demand remains strong, with notable declines in home sales and price drops compared to last year, hinting at a slower cooling trend in these regions.

Nineteen percent of homebuyers and sellers only want to live where abortion is fully legal, a rise from 12% last year, reflecting changing attitudes post-Roe v. Wade. Strong preferences are also noted for strong gun control laws, with 22% insisting on it. Gender-affirming care and LGBTQ rights are important for 47% and 15% of respondents, respectively. A Redfin survey indicates that 62% prefer areas with strong voting-rights protections. The survey involved 1,000 U.S. residents who recently bought or plan to buy/sell a home, showing the importance of political issues in housing decisions.

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%.