Redfin Corporation - RDFN STOCK NEWS

A new Redfin survey reveals that 17.3% of house hunters are willing to compromise on safety to find an affordable home within the next year. Gen Z respondents (23.7%) are the most likely to make this trade-off, followed by millennials (18.1%) and Gen Xers (17.5%). Only 5.5% of Baby Boomers would consider sacrificing safety for affordability.

The survey also found that house hunters are most willing to trade off access to healthcare amenities (41%), restaurants, bars, and coffee shops (36%), and highly-rated schools (26%). Other trade-offs include longer commute times (34%), living in areas with different demographics or political views (33%), and increased risk of natural disasters (28%).

Interestingly, 16.4% of respondents cited safety concerns as a reason for moving, highlighting the complex relationship between safety and housing decisions in the current market.

Redfin's report reveals significant migration trends to fire- and flood-prone areas in the U.S., particularly in Texas and Florida. Key findings include:

1. High-fire-risk counties saw a net inflow of 63,365 people in 2023, with Texas accounting for 36.1% of incomers.

2. High-flood-risk counties experienced a net inflow of 16,144 people, with Florida contributing 53.5% of new residents.

3. California's high-fire-risk areas saw a net outflow of 6,937 people in 2023, reversing the trend from 2022.

4. Climate risk is becoming a more significant factor in migration decisions, with 8.8% of people citing it as a reason for moving.

5. Rising insurance costs and intensifying natural disasters are influencing migration patterns, particularly in California and Florida.

Redfin reports that the typical U.S. home seller pays a 2.55% commission to the buyer's agent, down from 2.62% in January. This decline may be influenced by the National Association of Realtors (NAR) settlement announced in March. In dollar terms, the average commission is $15,377, up slightly due to rising home prices. Commission percentages have decreased in most major metros since the settlement, with Detroit seeing the largest decline from 3.18% to 2.87%. San Francisco has the highest average commission in dollars at $50,734. The NAR settlement, effective August 17, will change how buyer's agent commissions are advertised in MLSs, potentially impacting the homebuying and selling process.

Redfin's latest report reveals a significant shift in America's housing landscape. The number of renter households grew 1.9% year-over-year to a record 45.2 million in Q2 2024, outpacing homeowner household growth by three times. This trend is attributed to rising homebuying costs, with mortgage payments 90% above pre-pandemic levels compared to a 23% increase in asking rents.

Key findings include:

• Renter households have grown faster than homeowner households for three consecutive quarters
• Median apartment asking rent increased less than 1% year-over-year in June
• Median monthly mortgage payment jumped roughly 5%
• Los Angeles has the highest rentership rate at 53% among the 75 largest U.S. metros
• Worcester, MA has the lowest rentership rate at 23.2%

Redfin reports that despite lower mortgage rates and declining home prices, homebuyers are not yet responding to improved affordability. The median U.S. monthly housing payment dropped to $2,667, its lowest level since March. However, pending home sales are down 5.7% year-over-year, the biggest decline in nine months. Mortgage-purchase applications have also decreased by 14%.

New listings are up 4% year-over-year but losing momentum. Nearly two-thirds of homes for sale have been on the market for at least 30 days. Redfin agents report that while there's demand for turnkey homes in desirable neighborhoods, some buyers are waiting until after the presidential election to purchase. The median home-sale price is $392,563, down slightly from its early July peak.

Redfin reports a significant surge in luxury home prices, reaching a record $1,180,000 in Q2 2024, up 8.8% year-over-year. This growth outpaces non-luxury homes, which increased by 3.8% to $342,500. The luxury market has shown resilience despite high mortgage rates, largely due to all-cash buyers (43.7% of luxury home purchases).

Luxury home sales remained stable with a 0.2% increase, while non-luxury sales dropped 3.4%. Luxury inventory rose 9.7%, marking the fourth consecutive quarter of growth. However, both luxury and non-luxury homes are taking longer to sell, with median days on market increasing to 40 and 31 days, respectively.

Regionally, Providence, RI saw the highest luxury price increase (16.5%), while Nashville, TN experienced the largest sales growth (20.4%). The most expensive U.S. home sale in Q2 was in Glenwood Springs, CO (Aspen) for $77 million.

Redfin reports that the typical U.S. homebuyer's monthly housing payment has dropped to $2,671, the lowest level in four months. This decrease is attributed to falling mortgage rates, which have declined to 6.77%, the lowest since March. Despite this and a 6.1% year-over-year increase in new listings, homebuyers remain hesitant. Pending home sales are down 5.7% year-over-year, the biggest decline in nearly nine months, while mortgage-purchase applications have decreased by 15%.

The report highlights that many potential buyers are waiting on the sidelines due to home-sale prices being close to their all-time high and political uncertainty surrounding the upcoming presidential election. Some buyers are even delaying purchases until after the election, citing concerns about economic stability and potential policy changes.

Redfin reports a significant increase in stale home listings across the U.S. housing market. In June, 64.7% of homes on the market had been listed for at least 30 days without going under contract, up from 59.6% a year earlier. This marks the biggest annual increase in a year and the highest share for any June since 2020.

The trend is attributed to record-high home prices and elevated mortgage rates dampening buyer demand, while supply remains relatively high. Texas and Florida are experiencing the fastest growth in stale inventory, with Dallas seeing the most significant uptick among major U.S. metros. The report also notes that 42.6% of national home listings in June had been on the market for at least 60 days, up from 38.4% a year earlier.

Redfin (NASDAQ: RDFN) has announced it will release its second-quarter 2024 financial results on Tuesday, August 6, 2024, after the stock market closes. The company will host a live webcast and conference call to discuss the results at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors and interested parties can access the webcast on Redfin's Investor Relations website at http://investors.redfin.com.

Redfin, a technology-powered real estate company, offers a range of services including brokerage, rentals, lending, title insurance, and renovations. The company operates the #1 real estate brokerage site in the country and has saved customers over $1.6 billion in commissions since its launch in 2006. Redfin serves more than 100 markets across the U.S. and Canada and employs over 4,000 people.