Redfin Corporation - RDFN STOCK NEWS

Redfin's report predicts a robust housing market in 2021, driven by a slow economic recovery post-pandemic. Key forecasts include mortgage rates rising to about 3%, home sales exceeding 2006 levels, and an increase in new home construction. Over 14.5 million Americans are expected to relocate, boosting affordable cities' economies. The homeownership rate is projected to surpass 70%, and a shift to online buying practices will increase competition among real estate agents. This comprehensive analysis suggests a dynamic year for the real estate sector.

In a recent report, Redfin revealed that home values in Paradise, California, plummeted by 20.5% year-over-year to $136,000 in October 2020, marking the steepest decline in the U.S. This downturn is attributed to the aftermath of the 2018 wildfires, which devastated the region. The report highlighted that the pandemic has stunted the rebuilding of homes, with most available properties being empty lots. Additionally, other areas also saw significant declines, such as Sandusky, Ohio, and Portland, Oregon, with home values decreasing by 9.3% and 7.5%, respectively.

Pending home sales in U.S. counties with low Covid-19 cases rose 54.1% year over year, outpacing 45.1% growth in high-case counties, as reported by Redfin. The analysis covered 116 U.S. metropolitan areas for the period ending Dec. 1, 2020. New listings grew 20.6% in low-case areas compared to 12.8% in high-case areas. Active listings fell 41.2% in low-case counties. The average sale-to-list price ratio increased to 100.2% in low-case areas. The demand for homes declined in high-case regions, suggesting potential price drops for sellers.

Redfin Corporation (NASDAQ: RDFN) announced that CFO Chris Nielsen will present at the Piper Sandler P.S. It's Friday Series virtual event on December 11, 2020, at 11:00 a.m. ET. The live webcast and replay will be available on Redfin's investor website. Redfin is a technology-driven residential real estate company, integrating home buying and selling services, including brokerage and iBuying. They serve over 90 markets in the U.S. and Canada, saving customers over $800 million since 2006.

Redfin (RDFN) has launched its iBuying service, RedfinNow, in the Seattle and San Francisco metro areas, introducing a new selling option for homeowners. This service allows sellers to request cash offers directly from Redfin without needing to make home repairs or host showings. Homeowners can choose their closing date, providing flexibility for purchasing their next property. This expansion aligns with Redfin's strategy to offer comprehensive selling solutions and follows successful launches in various Californian cities. Redfin aims to help sellers make informed decisions by providing multiple selling options.

The U.S. housing market is projected to endure an influx of foreclosures as many affected homeowners are expected to sell or refinance their mortgages rather than lose their homes. Over 3.3 million homeowners face delinquent payments, yet rising home equity, which has increased by $2 trillion since the pandemic, offers them options. Currently, the average loan-to-value ratio is at 70%, indicating more equity for homeowners compared to the 2010 peak. Foreclosures may not significantly impact the housing market due to ongoing low inventory.

The latest report from Redfin (NASDAQ: RDFN) reveals significant trends in the U.S. housing market for the four weeks ending November 29, 2020. The median home sale price increased by 16% year-over-year to $322,828, the highest recorded. Pending home sales rose by 28%, while active listings dropped 29% from 2019. Despite fewer new listings, the homebuyer demand index was up 28% compared to pre-pandemic levels. Additionally, mortgage rates decreased to a record low of 2.71%, encouraging buyers to enter the market.