Redfin Corp - RDFN STOCK NEWS

Redfin's latest report reveals unseasonably high home prices and increased sales activity as of October 31. The national median sale price rose by 13% year-over-year, reaching $357,007, and 1.5% since October 10. Sales under one week surged to 33% and homes sold for 45% above listing prices. However, new listings fell by 7% compared to last year. Mortgage rates have slightly decreased to 3.09%, yet have risen overall since August, indicating a strong buyer urgency amid a constrained housing market.

Redfin Corporation (NASDAQ: RDFN) reported Q3 2021 financial results with revenues of $540 million, a 128% increase year-over-year. Gross profit grew 37% to $127 million, but operating expenses surged 163%$147 million, making up 27% of revenue. The net loss was $20.6 million, an improvement from $34.2 million last year. Despite a declining real estate services gross margin at 37%, Redfin achieved a 1.16% market share in U.S. existing home sales and saved customers over $83 million in fees.

In Q3 2021, the supply of America's most affordable homes surged 13% year-over-year as mortgage forbearance programs ended, according to a Redfin report. The affordable price tier saw a 1.6% increase in housing supply, while luxury and expensive segments experienced declines of 21.2% and 17.9%, respectively. Notably, high-end home sales fell for the first time in over a year, with luxury home purchases down 7%. Despite the increase in affordable homes, inventory remains below historic levels. Median sale prices rose across all price tiers, indicating strong buyer demand.

In Q3 2021, 30.2% of Redfin.com users sought to relocate to different metro areas, marking a decline from 31.1% in Q2 2021. Despite this decline, interest in relocation remains above levels from a year ago (29.2%) and pre-pandemic estimates (~26%). The analysis, based on 3.3 million Redfin users, revealed that Miami, Phoenix, and Sacramento were the top destinations. While the overall housing market shows signs of cooling, experts expect relocation rates to remain higher than pre-pandemic levels due to ongoing remote work trends.

Redfin's latest report reveals that one-third of homes sold in the past four weeks went under contract within a week, indicating a speeding up of the housing market despite the typical seasonal slowdown. The median home-sale price rose 13% year over year to $358,125, while asking prices for newly listed homes increased 11% year over year to $362,335. However, active listings fell sharply, down 22% from 2020 and 40% from 2019. Homebuyer demand remains strong with home tours up significantly compared to previous years, as buyers continue to compete for limited inventory.

On October 27, 2021, Redfin (NASDAQ:RDFN) introduced a new feature in its app allowing homebuyers to search for properties together via FaceTime using SharePlay. This innovation enables users to browse listings, share filters, and sync their searches in real-time. Redfin aims to enhance the homebuying experience, as one-third of homes receive offers within a week. The update is available for iPhone and iPad with iOS 15.1 or later. This feature is expected to provide a competitive edge by facilitating quick decisions and tours for prospective buyers.

In September 2021, 58.9% of home offers from Redfin agents faced competition, marking a record low for the year, down from 60.8% in August. This decline, the fifth consecutive month, aligns with the 58.3% rate from the previous year. The housing market's typical seasonal slowdown contributed to this decrease, alongside a 9% drop in new listings year-over-year. Homes sold faster, with a typical contract time of 18 days. Raleigh and Boston recorded the highest bidding-war rates at 73.9% and 71.7%, respectively.