Redfin Corporation - RDFN STOCK NEWS

Redfin reports that existing home sales in July 2024 rose 0.6% month-over-month but fell 2% year-over-year to a seasonally adjusted annual rate of 4,094,991 - the lowest July level since 2012. Pending sales declined 2.9% from June and 5.8% from last year, marking the biggest drops in nearly a year. The median sale price increased 4.1% year-over-year to $439,170, just 0.7% below the all-time high.

Despite lower mortgage rates, buyers have been slow to react, partly due to high home prices and economic uncertainty. Positively for buyers, the total supply of homes for sale rose 13.7% year-over-year, and only 33.2% of homes sold above asking price. However, about 15.8% of home-purchase agreements were canceled in July, the highest percentage on record for any July since 2017.

A new Redfin report reveals that Arizona and Nevada, two key swing states, have not turned blue despite an influx of residents from California and other blue states since the 2020 presidential election. Arizona has lost over 186,000 registered Democrats and 74,000 Republicans, while Nevada has lost 54,000 Democrats but gained 753 Republicans. Both states have seen significant increases in Independent voters, with Nevada adding over 320,000.

The report suggests that political self-sorting, disillusionment with major parties, and changing preferences among young, diverse voters contribute to these trends. Despite the change in Democratic candidates from Biden to Harris, Democratic voter registrations haven't gained ground relative to Republican registrations in these states.

Redfin reports a record 8.5% of U.S. homes are now worth $1 million or more, up from 7.6% a year ago and more than double the 4% share before the pandemic. This increase is attributed to rising home prices, with the median sale price nationwide up 4% year over year in June. The median sale price of U.S. luxury homes rose 9% year over year to a record $1.18 million in the second quarter.

Despite high mortgage rates reducing demand, a supply shortage is causing competition and keeping prices high. Inventory remains about 30% below pre-pandemic levels. The share of million-dollar homes increased in 47 of the 50 most populous U.S. metros, with California metros seeing the fastest growth. In San Francisco and San Jose, about 80% of homes are worth seven figures.

Redfin reports a 3.4% year-over-year increase in investor home purchases in Q2 2024, the largest rise since Q2 2022. Investors bought 16.8% of U.S. homes sold, spending $43 billion, up 13.7% from last year. This surge is attributed to strong rental demand due to high home prices and mortgage rates. San Jose and Las Vegas saw the biggest jumps (27%) in investor purchases, while Fort Lauderdale experienced the largest decline (-15.9%). Single-family homes drove the increase, with investor purchases rising 6.7% year-over-year. Notably, investors bought 24.1% of low-priced homes, up from 22.7% last year, highlighting their focus on more affordable properties.

Redfin's latest report shows the typical U.S. housing payment has fallen to $2,588, nearly $250 below April's peak and up just 1% year-over-year. This is the smallest increase in five years. Despite this and improving inventory, pending home sales are down 5.1% year-over-year, the biggest decline since November. Factors keeping buyers hesitant include near-record high home prices, economic uncertainty, and expectations of further mortgage rate drops.

The report also notes that less than 30% of homes are selling above list price, down from 35% a year ago. Mortgage-purchase applications are up 3% week-over-week, and Redfin's Homebuyer Demand Index shows the smallest decline since April. The median sale price is $389,250, up 3.4% year-over-year but below the July peak.

Redfin reports that teacher rental affordability has improved, with 47.9% of apartments near schools now affordable, up from 40.7% in 2023. This increase is attributed to a 3.8% rise in median teacher salaries to $64,266 and flattening asking rents. However, affordability remains below pre-pandemic levels of 58% in 2019.

The report highlights significant regional disparities. In Portland, OR, teachers can afford 91.3% of nearby apartments, the highest among 33 metros analyzed. Conversely, in Miami, teachers can afford only 0.2% of apartments, the lowest. For homeownership, the average teacher can afford just 14.3% of homes for sale near their school, unchanged from 2023 but down from 39.1% in 2019.

Redfin reports that median asking rents fell across all bedroom counts in July 2023, marking the first such occurrence since June 2020. The nationwide median asking rent was $1,647, down $53 from the 2022 all-time high. Rent decreases were observed for 0-1 bedroom (-0.1%), 2 bedroom (-0.3%), and 3+ bedroom (-2.4%) apartments. The overall rental vacancy rate remained at 6.6%, while buildings with 5+ apartments saw a vacancy rate of 7.8%.

Despite individual bedroom categories showing declines, the combined median asking rent rose 0.4% year-over-year due to Simpson's paradox. Sun Belt cities experienced significant rent drops, with Austin, TX (-16.9%) and Jacksonville, FL (-14.3%) leading. Conversely, East Coast and Midwest cities saw increases, with Virginia Beach, VA (+13.7%) and Baltimore, MD (+12.5%) topping the list.

Redfin reports that the total value of U.S. homes has reached a record $49.6 trillion, increasing by $3.1 trillion (6.6%) over the past year. The number of trillion-dollar metros has doubled to eight, including Anaheim, Chicago, Phoenix, and Washington, D.C. joining the existing four. New Jersey metros near New York City saw the largest percentage gains, with New Brunswick up 13.3% and Newark up 13.2%.

Rural home values outpaced urban and suburban areas, rising 7% year-over-year. The total value of millennial-owned homes increased by 21.5% to $8.6 trillion, significantly outpacing other generations. Asian neighborhoods experienced the largest increase in home value at 9%, rebounding from a decline in 2022-2023.

Redfin reports that mortgage rates dropped to their lowest levels in over a year, reaching a daily average of 6.34% on August 5. This decline was influenced by a weaker-than-expected jobs report and recession concerns. Although home prices fell from their peak, with a median sale price of $389,750, it remains the smallest year-over-year increase in nine months at 3.2%. Pending sales also saw a 6.7% year-over-year decline, marking the largest drop in nine months. However, there are signs of renewed interest among buyers; mortgage-purchase applications rose slightly, and Redfin's Homebuyer Demand Index saw a smaller decline. Touring activity increased by 13% since the start of the year, and new listings are up by 5.9%. Redfin economists suggest that now is a good time to enter the market due to lower rates and an abundance of unsold inventory.