Redfin Corp - RDFN STOCK NEWS

In the fourth quarter of 2020, top iBuying companies, including Redfin, purchased 3,505 homes, down 48% from the previous year, representing 0.3% of homes sold across 418 U.S. metro areas. Despite a recovering housing demand spurred by low mortgage rates, iBuying remains constrained by limited inventory. In Phoenix, iBuyers held a market share of 2.1%. iBuyers' median purchase price was $284,450, lower than the typical buyer's $318,300. Homes sold by iBuyers found buyers after just 14 days, the fastest pace since 2015.

The U.S. housing market saw a significant 13.4% surge in total home value, increasing by $4 trillion to $33.4 trillion from February 2020 to February 2021, according to Redfin. Key growth areas included Jacksonville, Austin, Charlotte, Phoenix, and Sacramento, with Jacksonville recording the highest percentage gain of 21.1%. Remote work trends have allowed affluent buyers to move to these affordable regions, pushing home values upward and exacerbating wealth inequality. Notably, out-of-state buyers are driving up prices, making homeownership less accessible for locals.

Redfin's recent report highlights the surge in popularity of vacation destinations and affordable suburbs, particularly since the onset of the coronavirus pandemic. El Dorado County, CA, ranked first, saw a 36% increase in home prices, while the median days on market fell by 50 days. In contrast, traditionally hot markets like Arlington County, VA have cooled down despite a 4% rise in prices, indicating a shift in buyer preferences. The report analyzes 10 hot and 10 cooling U.S. housing markets, correlating data with remote work trends.

In 2020, homeowners who purchased in primarily Black neighborhoods gained a median $59,000 in home equity, compared to $50,000 for those in primarily white neighborhoods. Gains were even higher for Asian ($79,000) and Hispanic ($67,000) neighborhood homeowners. Black homeowners saw a 197% increase in home equity, the highest percentage, yet their total equity remains lower than other races at $89,000. This trend signals a narrowing equity gap between Black and white homeowners, which dropped from $33,000 to $24,000 from 2019 to January 2021.

Redfin's latest report reveals that a homebuyer loses $23,250 in purchasing power with a mortgage rate increase to 3.25% from 2.75%. At the higher rate, a buyer can afford a $506,000 home, compared to $529,250 for the lower rate. The average mortgage rate hit 3.02% as of March 4, marking a rise after months below 3%. The report also indicates that rising rates may lead to more price-conscious buyers in the housing market.

Additionally, the affordability of homes decreased in major metros, impacting buyer options.

Redfin Corporation (NASDAQ: RDFN) announced that CFO Chris Nielsen will present at the Wolfe Virtual FinTech Forum on March 11, 2021, at 3:40 p.m. ET. Investors can access the live webcast and replay at investors.redfin.com. Redfin is a technology-driven residential real estate company offering brokerage, iBuying, mortgage, and title services across over 95 markets in the U.S. and Canada. Since 2006, Redfin has saved customers nearly $1 billion and facilitated transactions worth over $152 billion.

The median home-sale price surged 16% year over year to an all-time high of $323,600, marking the largest increase since 2016, according to Redfin's report. Key housing market insights include a new record for asking prices at $347,475, an 18% rise in pending sales, and a 40% drop in active listings. Although winter storms and rising mortgage rates have slightly impacted sales, demand remains high, with homes selling quickly. The average sale-to-list price ratio hit 99.6%, indicating homes are selling closer to their asking prices.

RentPath has reached a settlement with CoStar Group (NASDAQ: CSGP) regarding a $58.75 million break-up fee, with CoStar agreeing to pay $52 million, or 88.5% of the fee, shortly after court approval. This resolution allows RentPath to focus on its upcoming acquisition by Redfin Corp (NASDAQ: RDFN) for $608 million, subject to regulatory approvals. RentPath's CEO describes this as a significant victory, aligning the company with a partner that shares its values and commitment to customer service.

The latest report from Redfin reveals that the median home-sale price in urban areas rose 15.9% year-over-year to $292,263. This marks the first instance since March 2020 where urban price growth has surpassed suburban and rural price growth, which saw increases of 15.5% and 14.3%, respectively. Urban pending sales surged by 25% year-over-year, outpacing suburban growth of 20.8%. Significant price increases were noted in Baltimore (37.8%), Detroit (37.7%), and Cleveland (33.4%). However, urban prices in San Francisco dropped by 1.4%, indicating disparities across markets.