Redfin Corp - RDFN STOCK NEWS

Redfin (NASDAQ: RDFN) announces the addition of Brad Singer to its board of directors, replacing long-time member Bob Mylod, who will not stand for re-election at the 2022 annual meeting. Singer, a seasoned executive with experience at ValueAct Capital and Discovery Communications, aims to enhance Redfin's growth potential in the real estate sector. Mylod, who has been with Redfin's board for eight years, will conclude his tenure, having played a significant role in the firm's strategic direction.

The typical U.S. condo sold for a record $319,000 in February, marking a 14.6% increase year-over-year and 22.7% from two years ago. This surge is driven by a shortage of single-family homes, with prices reaching $406,000, up 15.9% year-over-year. Condo supply is down 28%, contributing to higher prices and competition. Condos sold significantly faster, with over 55% going off the market within two weeks. However, competition remains lower compared to single-family homes, which still see a higher percentage of bidding wars.

Redfin (NASDAQ: RDFN) reports a significant rise in housing prices, with median home sale prices increasing 17% year-over-year to a record high of $379,230. The increase in prices is attributed to a 7% decline in new listings and rising mortgage rates, which now average 4.42%. In an environment of heightened competition, 59% of homes sold were under contract within two weeks. Additionally, 50% of homes sold above the list price. The press release emphasizes the ongoing challenges for first-time homebuyers amidst these market dynamics.

Redfin has launched a nationwide rental search feature on its website and iOS app, enabling users to explore both rental and for-sale listings conveniently. This new feature, powered by RentPath, which Redfin acquired in April 2021, enhances the platform's authority in real estate, potentially attracting more visitors and property managers. Redfin boasts approximately 47 million monthly visitors, providing substantial exposure for property listings. The integration allows an easy switch between rental and sales searches, promoting efficiency for users and property managers alike.

Redfin reports a significant increase in homebuyers relocating, with 32.3% of users looking to move in early 2022, up from 31.5% in 2021 and 26% in 2019. Rising home prices (16% year-over-year) and increasing mortgage rates are driving this trend, particularly in affordable metros like Miami and Phoenix. The report highlights a record net outflow from California and New York, with San Francisco seeing the highest departures. These migrations reflect a shift to areas with lower costs and better opportunities for remote work.

According to Redfin, the average monthly asking rent in the U.S. rose 15% year-over-year to $1,901 in February, marking the largest increase since 2020. In contrast, the national median monthly mortgage payment surged 31% to $1,716. The rapid rise in mortgage rates is driving potential homebuyers to opt for renting, consequently pushing rental prices higher. Key cities like Austin and Portland reported significant rent hikes of 40% and 39%, respectively. The report indicates ongoing inflationary pressures in the housing market and urges Americans to consider cost-saving measures.

In February, 68.6% of home offers from Redfin agents faced bidding wars, a slight increase from 68% in January. This marks the highest level since April 2020. The unadjusted rate for February was 71.4%. Mortgage rates have risen to 4.16%, the highest since 2019, due to Federal Reserve interest rate hikes. El Paso, Denver, and Minneapolis are reported as the top competitive markets, with bidding rates of 87.5%, 83%, and 81.1% respectively. Townhouses are the most competitive property type, with 75.3% of offers facing competition.

The latest report from Redfin highlights a significant surge in the U.S. housing market, with the median home sale price climbing 7% over the past month to a record high of $376,350.

This reflects a 17% increase year-over-year. Despite rising mortgage rates, now at 4.16%, pending home sales grew by 3% compared to last year, showcasing persistent demand. New listings, however, decreased by 3%, contributing to a 23% decline in active listings. Additionally, homes are selling faster, with a median market time of just 23 days, underscoring a competitive housing environment.

In February, home prices surged 16% year-over-year to a record $389,500, fueled by a continued decline in inventory. Sales fell 7% month-over-month, with only 594,300 homes sold. The median sale price increased by 3.5% since January, marking the highest winter monthly gain. 47.3% of homes sold above list price, up from 36.2% a year ago. The supply of homes for sale reached an all-time low, with active listings down 14% year-over-year. The competitive market is evidenced by homes selling in a median of 25 days. Overall, the data reflects strong demand despite rising mortgage rates.