Redfin Corporation - RDFN STOCK NEWS

Redfin (RDFN) has announced its acquisition of Bay Equity Home Loans for approximately $135 million in cash and stock. This strategic move aims to enhance Redfin's mortgage offerings and create a comprehensive real estate solution for customers. Bay Equity, which operates in 42 states, will expand Redfin's lending capacity, allowing it to serve a larger share of home-buyers, including veterans and those with lower credit scores. The acquisition is expected to close in Q2 2022 and be accretive to 2022 earnings per share.

According to a Redfin report, 11.6% of first-time homebuyers surveyed in Q4 have used cryptocurrency to save for down payments, up from 8.8% in Q3 2020. The survey revealed that 52% saved directly from paychecks, while 12% received cash gifts and 10% withdrew from retirement funds. The increase in crypto use comes as millennials, who now comprise over half of new mortgages, seek non-traditional funding methods amid rising home prices. Bitcoin recently peaked at nearly $69,000, highlighting the potential role of digital currencies in home purchases.

Redfin has reported a robust start to 2022, with home prices increasing by 14% year-over-year, reaching a median of $358,460. Despite a 27% decline in active listings, pending sales rose by 3.5%. The number of new listings fell by 10%, yet there are signs that more homes may soon enter the market. Redfin Chief Economist Daryl Fairweather noted increased interest from homeowners in selling. Key metrics show 41% of homes sold exceeded their asking prices, with a notable 100.3% average sale-to-list price ratio.

Demand for vacation homes surged 77% year-over-year, significantly surpassing pre-pandemic levels, according to a report from Redfin.

Despite a slight decrease from an 80% increase in November, December's numbers indicate a stable interest among affluent buyers due to low mortgage rates and remote work options. Redfin's Chief Economist Daryl Fairweather emphasized that wealthy buyers continue to leverage cheap debt, suggesting ongoing high demand into 2022. The report is based on mortgage-rate lock data, highlighting that 80% convert into actual purchases.

The latest report from Redfin reveals that the median home sale price increased by 14.6% year-over-year, reaching an all-time high of $361,171 during the four-week period ending December 26. This surge is attributed to historic low housing inventory. Additionally, the report highlighted that pending home sales rose by 4.2% year-over-year, and 42.1% of homes sold were above the listing price. However, new listings dropped 6.4% year-over-year, indicating a potential supply constraint in the market.

The median home sale price increased by 15% year-over-year to an all-time high of $360,500 during the four weeks ending December 19, 2021, as reported by Redfin. Pending sales rose minimally by 0.1%, indicating supply constraints. The number of homes for sale plummeted by 26% to an all-time low. While demand remains robust, Redfin's Chief Economist, Daryl Fairweather, predicts a slowdown in price growth due to anticipated increases in mortgage rates. Key metrics show a significant rise in median asking prices, active listings, and homes sold above list price.

According to a Redfin report, U.S. homeowners saw a remarkable $9.1 trillion increase in housing value over the past year. Total U.S. home value surged 31.4% year-over-year to $38.3 trillion in November, outpacing last year's 9.7% increase. Rural home values rose 46.2% to $4.9 trillion, while condo values increased 42.7% to $5.1 trillion. Cities like Austin experienced the largest gains at 48.1%. The report highlights a growing wealth gap between homeowners and renters as home values soar, driven by low mortgage rates and remote work.