Redfin Corp - RDFN STOCK NEWS

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.

Sellers are re-entering the housing market, with new home listings surpassing 2019 levels for the first time this year, according to Redfin's latest report. The median home-sale price hit a record high of $364,430, marking a 22% year-over-year increase. Despite this increase in supply, homebuying demand declined slightly, with pending home sales rising just 17%, the smallest gain in nearly a year. Homes sold faster, averaging just 15 days on the market.

Redfin has announced the launch of a career accelerator program in Seattle and Washington, D.C. to recruit and train 50 new real estate agents. This initiative targets individuals from diverse backgrounds, easing their transition into the real estate sector by providing a salary, benefits, and a $1,500 signing bonus. Participants will receive comprehensive training and support, aiming to eliminate common financial barriers faced by new agents. Applications are open until August, with training commencing in November.