Redfin Corp - RDFN STOCK NEWS

Redfin reports a significant shift in the housing market two years post-pandemic, with 50% fewer homes available for purchase and a 34% increase in median sale prices, now at $369,125. The total number of homes on the market has plunged to approximately 456,000, intensifying bidding wars resulting in 46.3% of homes selling above asking price. Homes are also selling twice as fast, averaging 25 days on the market. Meanwhile, 70% of offers faced competition, highlighting the ongoing demand despite rising mortgage rates.

According to a recent report from Redfin, 8.2% of U.S. homes were valued at $1 million or more in February, nearly double the 4.8% from two years prior. The Bay Area dominates, with 88.7% of homes in San Francisco hitting the million-dollar mark. The report cites a 50% drop in housing inventory from two years ago and a 33% increase in median sale prices, reaching $363,975. As demand outstrips supply, the trend has led to concerns about homeownership affordability. Notable increases were observed in Anaheim, where 55% of homes are million-dollar properties.

In early 2022, competition for homes surged, with 5,897 properties selling for over $100,000 above asking price, up from 2,241 in 2021. January recorded a 70% bidding war rate, driving the median home-sale price to $376,200—a 14% year-over-year increase. Buyers rushed to secure homes ahead of rising mortgage rates, with an average rate of 3.76% by March 3. California dominated regions with high premiums, particularly Los Angeles, where 718 homes sold significantly above asking price. Analysts project ongoing competition but anticipate a potential easing as new listings emerge and rates rise.

Redfin reports a surge in home prices to an all-time high of $363,975 for the four-week period ending February 27, reflecting a 16% increase year-over-year. Intense competition among buyers is evident, with homes selling for 0.8% above list price. A decline in mortgage rates, due to geopolitical tensions, temporarily boosts homebuying demand. However, concerns loom as the Federal Reserve may increase interest rates again. Key indicators reveal a 24% drop in active listings and a 2.6% rise in pending sales year-over-year.

The typical American homeowner spent 13.2 years in their home in 2021, a slight decline from 2020's peak of 13.5 years. This trend reflects a combination of pandemic-related relocations and low mortgage rates encouraging homebuyers. Factors contributing to prolonged homeownership include an aging populace, a shortage of homes for sale, and favorable refinancing opportunities. Redfin's data indicates that older homeowners are staying longer, with the most extended tenures in Los Angeles at 18 years. The supply-demand imbalance continues to challenge potential buyers.

Redfin Corporation (NASDAQ: RDFN) announced that its Chief Financial Officer, Chris Nielsen, will present at the Wedbush Real Estate Technology Conference on March 2, 2022, at 3:05 p.m. ET. A live webcast and replay of this presentation will be accessible via http://investors.redfin.com. Founded in 2006, Redfin is a technology-driven real estate firm, offering services like brokerage, home-buying, rentals, and renovations, saving customers over $1 billion in commissions and operating across more than 100 markets in the U.S. and Canada.

The housing market shows signs of recovery, with newly listed homes down just 2% year-over-year, the smallest decline since mid-November. Pending sales increased by 1%, marking the first rise since mid-January. Median home sale prices reached a record high of $358,750, up 15% year-over-year. The median asking price also rose 15% to $385,327. Active listings fell 25% to an all-time low of 452,000 homes. Despite a 10% decrease in mortgage applications, homebuyer demand rose significantly, with 58% of homes under contract accepting offers within two weeks.

Redfin reported that in January, 70% of home offers written by their agents faced competition, marking an increase from 60% a year earlier. This rate is the highest since April 2020. The competitive housing market is influenced by rising mortgage rates, which surged to 3.55% in January, up from 3.11% in December. With predictions of rates reaching 4.3% later this year, buyers are hastening their purchases. Additionally, 72.6% of offers for townhouses faced competition, and Spokane, Sacramento, and Seattle saw the highest bidding-war rates.

Redfin's recent report reveals that a record 32.4% of users aimed to relocate in January 2022, surpassing the 31.5% peak from Q1 2021 and growing from pre-pandemic levels. Chief Economist Daryl Fairweather forecasts this trend will persist as rising mortgage rates and rents push Americans towards affordable metros. Popular relocation cities include Miami, Phoenix, and Tampa. Notably, San Francisco maintains its status as the top city people are leaving, with a median home price of $1.4 million. Affordability concerns may drive searchers to less expensive Northern cities.