Redfin Corp - RDFN STOCK NEWS

Redfin reports a significant housing market surge, with pending home sales up by 44% compared to 2019, yet new listings grew by only 3%. A third of homes sold within a week, showing strong demand amid limited supply. The median home sale price rose to $355,875, a 13% increase year over year. Active listings dropped by 22% from 2020 and 40% from 2019, leading to heightened competition among buyers. Despite a slight decrease in mortgage applications and rising rates, demand remains steady, indicating a robust fall market.

In September, the demand for second homes surged by 60% compared to pre-pandemic levels, as reported by Redfin. This analysis, based on mortgage-rate lock data, indicates a rebound in interest for vacation homes after a summer slowdown. Despite a temporary decline due to Fannie Mae's new mortgage rules, renewed urgency among buyers is anticipated as interest rates rise. The removal of these restrictions by the Treasury and the Federal Housing Finance Agency is expected to sustain demand for second homes. Ongoing remote work policies by companies like Amazon and Microsoft may further contribute to this trend.

SEATTLE, Oct. 15, 2021 /PRNewswire/ -- Redfin (NASDAQ: RDFN) reports a 14% year-over-year increase in median home sale prices, reaching $376,800 in September, although this is the lowest growth rate since December 2020. Home sales and new listings fell by 5% and 9% respectively. The chief economist notes that inventory shortages are hindering sales, yet anticipates better new construction in 2022. Other key data includes a 5.4% decrease in closed home sales from last year and a 19% drop in active listings.

Redfin reported a significant rise in average national monthly rents, increasing by 11% year-over-year, marking the highest growth rate in two years. Meanwhile, the median monthly mortgage payment for homebuyers surged by 15% since September 2020, surpassing rent growth for the eighth consecutive month. Florida cities like Fort Lauderdale, Miami, and West Palm Beach experienced the steepest rent increases at 36%. Only Pittsburgh saw a slight decrease in rents, falling 1%.

According to a Redfin report released on October 14, 2021, the percentage of homes selling within one to two weeks is increasing, contrary to typical seasonal trends. One-third of pending sales were under contract within a week, up 2.2 points from the previous month. This surge is attributed to a severe supply shortage, with active listings dropping 5.9% recently. The median home-sale price rose 13% year over year to $355,600. Other key data includes a 4% increase in pending sales year over year and 46% of homes selling above list price.

The average homebuyer's monthly mortgage payment increased by $50 in six weeks, according to Redfin's report. Meanwhile, the median asking price for homes surged 12% year-over-year to a record $365,073. Despite rising mortgage rates surpassing 3%, homes are selling quickly, with 46% of homes going under contract within two weeks. However, the share of listings with price drops is rising, indicating a potential easing in price hikes. As affordability declines, future demand could be impacted as higher rates may discourage buyers.

According to a Redfin report, home prices in wildfire-hit areas rose by an average of 21% over three years, compared to 33% in surrounding areas. Home purchases in affected areas dropped 38%, initially plummeting 43% the year after fires, but recovering to a 29% decline by year three. Cash purchases surged 17% in these zones, driven by investors and builders. Consequently, 595% more homes were built in fire-impacted regions, while property-tax revenue fell 6%, contrasting with a 12% increase elsewhere.

Redfin (NASDAQ: RDFN) has introduced its Direct Access feature nationwide, allowing homebuyers to self-tour vacant homes using the Redfin app. This advancement, coupled with a partnership with ADT for 24/7 security monitoring, enhances buyer safety and seller visibility. Homes with Direct Access experience double the average tours compared to others. The partnership accelerates the rollout across 22 markets and includes pre-installed ADT smart home security systems valued at $899, benefiting both buyers and sellers.