Redfin Corporation - RDFN STOCK NEWS

RDFN reported that home prices reached a record high of $359,975 in the four-week period ending November 21, reflecting a 14% year-over-year increase. This surge is attributed to rising rents and inflation, leading more buyers to enter the market. Key metrics include a 12% rise in asking prices and an 8% increase in pending sales compared to last year. Despite a 22% decrease in active listings since 2020, 45% of homes went under contract within two weeks, indicating strong demand.

In October, 60.3% of home offers by Redfin agents faced competition, nearly unchanged from September's 60.4% but down from a peak of 74.5% in April. The data indicates a seasonal cooling in the housing market, yet a revival in buyer demand could lead to increasing bidding wars. Salt Lake City recorded the highest bidding-war rate at 79.5%, followed by Sacramento at 77.1%. Although competition is prevalent, many buyers are returning to the market to leverage low mortgage rates.

Redfin reports a 13% increase in average monthly rents nationwide over the past year, marking the highest growth rate in two years. Meanwhile, the national median monthly mortgage payment surged 17% since October 2020. The 3.2% month-over-month rise in mortgage payments is the largest since April. Rents have outpaced mortgage payments in 29 of the 50 largest U.S. metro areas, with notable increases exceeding 30% in several cities. Experts warn that rising rents could drive inflation further as employees seek higher wages.

Redfin Corporation (NASDAQ: RDFN) is set to present at the Stephens Annual Investment Conference on November 29, 2021, at 12:00 p.m. ET. Chief Financial Officer Chris Nielsen will represent the company during this virtual event. A live webcast and a replay of the presentation will be accessible at investors.redfin.com.

Founded in 2006, Redfin is a technology-driven real estate company offering a range of services, including brokerage, iBuying, and rentals, saving customers over $1 billion in commissions.

The housing market showed signs of cooling in October 2021, with the median home price reaching $378,700, a 13% increase year-over-year but the lowest growth rate since December 2020. Home sales declined 8% year-over-year, and new listings fell 11%. Despite these declines, pending sales rose 3% from September. The Chief Economist, Daryl Fairweather, cited a severe lack of inventory as a major constraint, though he remains optimistic about improvements in new construction for 2022. The data indicates a challenging environment for homebuyers but some recovery in demand.

On November 18, 2021, Redfin (NASDAQ: RDFN) announced that its Homebuyer Demand Index reached an all-time high, signaling robust housing demand. Despite a seasonal slowdown, the number of home sales is accelerating, with 45% of homes going under contract within two weeks. The median home-sale price rose 13% year-over-year to $357,881. New listings decreased by 12% since six weeks prior, but the decline is smaller compared to previous years. Mortgage rates remain near historic lows, contributing to increased buyer activity and demand, with pending sales up 7% year-over-year.

On November 18, 2021, Redfin (NASDAQ: RDFN) released a report predicting a more balanced housing market for 2022. Homebuyers are expected to rush to purchase homes early in the year before anticipated mortgage rate hikes. Redfin forecasts a 1% increase in home sales and a slowdown in price growth to 3% by year-end. Key predictions include rising mortgage rates, rental increases by 7%, and a record number of new listings. Demand for affordable cities is expected to rise, and climate risks will increasingly influence buyer decisions.

Redfin reports a 70% increase in demand for second homes in October compared to pre-pandemic levels, surpassing August's 48% rise but falling below January's 91% peak. The ongoing demand is attributed to companies solidifying remote work policies, encouraging buyers to secure low mortgage rates. The removal of restrictions on second-home loans by the Treasury Department in September further fuels this trend. Approximately 80% of mortgage-rate locks lead to home purchases, indicating strong market activity.

In Q3 2021, real estate investors acquired a record 18.2% of U.S. homes, up from 16.1% in Q2 and 11.2% a year earlier, as reported by Redfin. Investor purchases reached 90,215 homes, valued at $63.6 billion. Cash purchases comprised 76.8% of these transactions. The average home price rose to $438,770, while monthly rents surged 10.7%. Notably, single-family homes constituted 74.4% of investor acquisitions. Atlanta and Phoenix saw the highest investor market shares at 32% and 31.7%, respectively.