Redfin Corporation - RDFN STOCK NEWS

Redfin Corporation (NASDAQ: RDFN) will announce its second-quarter 2021 results after market close on August 5, 2021. A live webcast of the conference call is scheduled for 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors can access the webcast via Redfin's Investor Relations website. Redfin operates as a technology-powered real estate broker and has saved customers over $1 billion in commissions since its launch in 2006. The company serves over 95 markets across the U.S. and Canada.

In June, the U.S. condo market saw significant growth, with the typical condo selling for $304,000, 0.7% above its asking price. This marks the second consecutive month of selling above asking since 2012. Nearly 42% of condos sold above asking, doubling the rate from June 2020. The speed of sales intensified, with condos going under contract in an average of 22 days. However, overall inventory dropped 18%, indicating robust demand. Year-over-year, condo sales surged 59.7%, while pending sales rose 38.2%.

Redfin reported that 31.1% of its users sought to relocate to a different metropolitan area in Q2 2021, a rise from 27.6% in Q2 2020. The trend of moving, spurred by the pandemic and remote work, indicates a shift towards affordability and distance from urban job centers. Popular destinations include Phoenix, Las Vegas, and Miami. Notably, net outflows were highest from New York, San Francisco, and Los Angeles. Although Las Vegas saw an 18.1% increase in home prices, it remains affordable compared to pricier metros.

As of July 15, 2021, over 34,823 homes in rural counties across Washington, Oregon, California, and Idaho are at risk from wildfires. Currently, more than 50 fires are active in the Western U.S., threatening many homes in rural communities. Redfin's analysis identifies the counties with the highest percentage of homes at risk, including Asotin County (29.7%), Siskiyou County (14.3%), and Tulare County (14.1%). Redfin also published a report showing that one-third of properties in Utah face a future high fire risk.

Redfin (NASDAQ: RDFN) has reported a significant shift in the housing market, with the average weekly share of homes for sale with price drops exceeding 4% for the first time since September. This change signals a cool-down in the previously hyper-competitive market. The median home-sale price has surged 21% year over year to a record high of $365,500. Meanwhile, pending home sales rose 11% year over year but are down 11% from the 2021 peak. Key indicators suggest buyers may soon regain some negotiating power as the share of price drops climbs closer to pre-pandemic levels.

According to Redfin's analysis, nearly one-third (30%) of U.S. home purchases in 2021 were made with all cash, up from 25.3% in 2020 and the highest since 2014. The increase is attributed to a strong stock market, with the S&P 500 gaining 36% in the past year. Significant cash purchases were observed in areas like West Palm Beach, FL, where over half of transactions were cash-based. However, this trend poses challenges for first-time and lower-income buyers, as two-thirds of offers still face bidding wars.

According to Redfin's report, seasonally-adjusted home sales decreased by 1.2% from May to June, marking the largest drop for this period since at least 2012. The national median home-sale price reached a record high of $386,888, a 25% increase year-over-year. Despite sales decline, 56% of homes sold above their list price, indicating continued market competitiveness. New listings rose by 8% year-over-year. Chief Economist Daryl Fairweather predicts stabilization in home prices as more homeowners list their properties, suggesting a revival in home sales by 2022.

The demand for second homes in the U.S. has decreased by 11.1% year-over-year in June 2021, according to Redfin. This marks the first decline since April 2020 after a surge driven by pandemic conditions. As workers return to offices, the appeal of vacation homes is waning, although demand remains slightly above pre-pandemic levels. Home prices in seasonal towns rose 28% year-over-year to $468,000, while non-seasonal towns saw a 26% increase to $421,000. The gap in price growth between these areas has narrowed since the pandemic's peak.

In June 2021, 65% of home offers from Redfin agents faced competition, a decline from 72.1% in May and down from a peak of 74.1% in April. This represents an increase from 56.8% in June 2020, indicating a competitive market despite recent easing. Factors contributing to the decline include buyer fatigue and an improvement in housing supply with new listings up 4% year-over-year. Sarasota, FL, saw the highest bidding-war rate at 87%. Redfin's report highlights changing buyer behaviors as they begin to include contingencies amid a softer competition landscape.