Redfin Corporation - RDFN STOCK NEWS

The latest report from Redfin reveals a significant surge in the U.S. housing market, with the median home sale price rising by 15% year over year to $320,625, marking a record high. In the week ending October 18, home prices increased 16% from the same week last year. Key takeaways include a 32% rise in pending home sales, an 8% increase in new listings, and active listings dropping by 29%. The average sale-to-list price ratio reached 99.5%. The report suggests a competitive market despite seasonal trends.

Redfin Corporation (NASDAQ: RDFN) is set to disclose its third-quarter 2020 financial results on November 5, 2020, following the market's close. The company will host a live conference call at 1:30 p.m. PT / 4:30 p.m. ET to discuss these results. Interested parties can listen to the call via the company’s Investor Relations website, with an archived version available for three months post-call. Redfin is a technology-driven real estate company, offering a variety of services including brokerage and iBuying, and has saved customers over $800 million since its inception.

In September, 56.3% of Redfin offers faced bidding wars, a decrease from 59.1% in August. This marks the first decline in five months, yet competition remains significant. Tampa reported the lowest rate at 26.3%, while Salt Lake City had the highest at 81.1%. The housing market is influenced by record-low mortgage rates and a 50% drop in housing inventory in Salt Lake City, driving competition. Single-family homes are experiencing the most bidding wars at 58.9%, while condos lag behind at 40.5%.

Redfin's report highlights significant population shifts from California to Arizona and Nevada, influenced by remote workers seeking affordable housing. Arizona has seen a net gain of 51,000 registered Democrats since 2016, suggesting a political shift towards Democrats in swing states. Similarly, Nevada has gained 3,000 more registered Democrats. The report indicates that these trends could affect voter outcomes in the 2020 presidential election, with Democrats potentially benefiting from an influx of new residents who lean left.

The national median home price surged 14.4% year-over-year to $333,900 in September 2020, marking the largest annual increase since 2012. Influenced by record-low mortgage rates and housing supply shortages, home sales rose 17.6% compared to last year, with 620,100 homes sold. Active listings fell 22.8%, leading to a competitive market where 33.9% of homes sold above list price. Areas like Bridgeport, CT, and Memphis, TN, saw the highest price increases, while homes sold faster than ever, averaging 29 days on the market.

The latest report from Redfin highlights a significant disparity in home prices between low and high wildfire-risk areas. Since 2012, median sale prices in low-risk areas have surged by 101%, compared to an 88% increase in high-risk zones. In August 2020, homes in high-risk areas averaged $640,000, 3.9% less than those in low-risk areas. This trend, driven by competition and affordability, may force homebuyers to seek homes in riskier regions. The findings draw from data across 2,700 zip codes in California, Oregon, and Washington.

Redfin Corporation (NASDAQ: RDFN) has priced $575 million of 0% convertible senior notes due 2025, up from a previous offering size of $525 million. The notes are aimed at qualified institutional buyers and are expected to close on October 20, 2020. Proceeds are estimated around $562.8 million, which will be used to repurchase outstanding convertible senior notes due 2023 and for general corporate purposes. The initial conversion rate is set at approximately 13.79 shares per $1,000 principal, with a conversion price premium of about 40% compared to its recent stock price.

The median sale price of Trump-branded condos is $720,000, a 9.7% premium over comparable luxury condos, which is a significant drop from the 33.5% premium in 2016. Total sales of Trump condos have halved to 93 in 2020. The time taken to sell these properties has increased to 118 days compared to 78 for comparable luxury condos. The decline in price premium may stem from the political polarization surrounding the Trump brand. Only 57% of condos in Trump-branded buildings mentioned the name 'Trump' in listings, down from 85% in 2015.