Redfin Corporation - RDFN STOCK NEWS

Redfin reports significant increases in rental and home-sale prices in popular second-home markets. In April, average rental prices surged by 17.1% nationwide to $1,893, with second-home markets seeing a rise of 25% or more in areas like Phoenix and Cape Coral, FL. The typical home price in these markets reached a record $516,423, marking a year-over-year increase of 19.9%. High mortgage rates and the end of the second-home buying boom may lead to slower price growth.

The latest report from Redfin reveals that in April, U.S. homes with high fire risk sold for a median price of $550,500, compared to $431,300 for low-risk homes, marking a significant increase of 27.6% or $119,200. This growth indicates a shift in buyer preferences during the pandemic, as demand for large suburban homes has surged. Homes in high-fire-risk areas also sold faster, averaging 16 days on the market. However, sellers of these homes are increasingly lowering their asking prices, with 21.9% experiencing price cuts in April.

Redfin reports that homebuyers in popular metros like Austin are shifting to more affordable cities, particularly San Antonio. In Q1, San Antonio experienced a net inflow of 6,000 homebuyers, rising from 4,000 a year ago, while Austin's inflow dropped to 3,000 from 11,000. Despite a 38% increase in San Antonio home prices since the pandemic began, median prices remain $330,000—over $200,000 cheaper than Austin, where prices surged 70% to $555,000. The high cost in Austin has resulted in a cooling housing market, contrasting with San Antonio’s rapid growth.

According to a new report from Redfin, the housing market is undergoing a significant shift as homebuyers regain some control due to rising mortgage rates and high home prices. In May, pending home sales saw the largest annual decline since spring 2020, and more than one in five sellers reduced their prices—the highest rate since October 2019. While the median home sale price reached a record $400,999, mortgage rates stabilized around 5.09%. The Redfin Homebuyer Demand Index also fell 9% year over year, reflecting a decrease in buyer activity and home touring.

Redfin (NASDAQ: RDFN) shares strategies for home sellers as the market shifts from a seller's advantage to a more buyer-friendly environment. With mortgage rates climbing from about 3% to over 5%, sellers are advised to list homes sooner and at competitive prices. Experts recommend pricing homes slightly below comparable sales to attract buyers. Additionally, sellers should prepare homes for showings and be open to negotiations as buyers become more discerning. While demand remains, it has decreased from earlier in the year.

Redfin Corporation (NASDAQ: RDFN) announced that its Chief Financial Officer, Chris Nielsen, will present at the Bank of America 2022 Global Technology Conference on Wednesday, June 8, 2022, at 3:05 p.m. PT. A live webcast and replay of the presentation will be available at investors.redfin.com. Redfin is a technology-powered real estate company offering services such as brokerage, iBuying, rentals, lending, and renovations. Since its inception in 2006, Redfin has saved customers over $1 billion in commissions.

SEATTLE--(BUSINESS WIRE)--Redfin Corporation (NASDAQ: RDFN) announced CFO Chris Nielsen will present at the Stifel 2022 Cross Sector Insight Conference on Tuesday, June 7, 2022, at 1:15 p.m. ET. Investors can access the live webcast and the presentation replay at investors.redfin.com. Redfin is a technology-powered real estate company, helping clients with services like brokerage, iBuying, rentals, and more. Since its inception in 2006, the company has saved customers over $1 billion in commissions and operates in over 100 markets in the U.S. and Canada.

Redfin's latest report reveals that Sun Belt metros are leading in single-family home construction, driven by skyrocketing prices and high demand from out-of-state buyers. Austin, TX tops the list with 31.1 permits per 10,000 people, followed closely by Raleigh and Jacksonville. Despite the surge in new constructions, homebuyer demand is cooling, and sales of new homes are down as mortgage rates rise. The typical newly built home sold for $470,000 in Q1 2022, revealing an ongoing affordability crisis. The report underscores the urgent need for increased homebuilding to meet demand.

Redfin reports a significant increase in home price drops, especially in migration hotspots, as rising mortgage rates affect buyer affordability. In April, 41% of home sellers in Boise, ID reduced prices, a sharp increase from 10% last year. Other cities with notable drops include Cape Coral, FL (33%) and New Orleans (32%). The national rate of price drops is at its highest since October 2019. Daryl Fairweather, Redfin's Chief Economist, attributes the trend to diminished buyer demand due to higher mortgage rates, impacting previously inflated prices.