Redfin Corp - RDFN STOCK NEWS

U.S. luxury home sales surged 60.7% year-over-year in Q3 2020, marking the largest increase since 2013, as reported by Redfin. This growth outpaced mid-priced homes' 14.8% increase and affordable homes' 6.8% rise. The median luxury home price reached $899,000, up 9.0% from last year. The report indicates affluent buyers are benefiting from stock market gains and low mortgage rates, while affordable home sales lag behind. New luxury listings increased 31.5%, with a notable rise in homes for sale as demand for vacation properties soared.

In November 2020, homebuyers experienced the most affordable month to buy a home, with a median monthly mortgage payment of $1,094, down from $1,163 in February. Despite a record high median list price of $336,000, historically low mortgage rates at 2.77% mitigated costs. Redfin reported that 54.3% of offers faced competition, indicating a challenging market despite affordability. Notably, the median mortgage payment increased slightly year-over-year in November, while 30 out of 50 metros saw a decrease compared to the previous year. The report highlighted regional disparities in affordability.

In Q3 2020, iBuyers, including Redfin, bought approximately 1,800 homes, a nearly 80% decrease from the previous year and only 0.2% of homes sold across 418 U.S. metros. Purchases rose from 800 homes in Q2 2020, reflecting a recovery post-pandemic shutdown. The hot real estate market saw home prices increase by 15% nationally, impacting iBuyers' attractiveness to sellers. The median purchase price for iBuyer homes was $251,000, lower than the typical homebuyer median of $312,000.

In October and November 2020, 29.4% of Redfin.com users sought to move to a different metro area, a rise from 25.4% the previous year. This marks the highest migration rate since tracking began in 2017, driven by remote work trends. Popular destinations include Sacramento, Las Vegas, Phoenix, Austin, and Atlanta. Notably, Austin saw its net inflow of movers double from last year, predominantly from tech workers on the coasts. Conversely, the net outflow from major cities like New York and San Francisco has also increased significantly.

The latest report from Redfin reveals a 15% increase in the median home sale price year over year, reaching $322,616, the highest recorded. Key findings include a 32% rise in pending home sales, a 13% increase in new listings, but a significant 30% drop in active listings compared to 2019. The average sale-to-list price ratio hit an all-time high of 99.5%. As of December 2020, mortgage rates fell to 2.67%. Redfin's chief economist expects continued strong demand in the housing market into 2021, amid the pandemic's final stages.

As of December 2020, 24.3% of homes sold in the U.S. were purchased with cash, a decrease from 25.3% in 2019, marking the lowest percentage since 2007. Reflected in a report by Redfin, this trend signals a shift driven by lower mortgage rates averaging 2.71%. Chief economist Daryl Fairweather suggests buyers prefer loans due to low interest rates, opting to invest cash elsewhere. In Nassau County, cash purchases soared to 48.9%, indicating regional variations in buying behavior amidst the pandemic.

The national median home price increased by 14.0% year over year to $335,519 in November, according to a recent report from Redfin. This marks a significant surge driven by high demand amid limited housing supply. Closed home sales rose 23% year-over-year, while pending sales increased by 37%. Active listings fell 23%, marking an ongoing decline that affects market dynamics. The number of homes sold above list price reached a record 35%. Overall, these trends suggest an exceptionally competitive housing market.

According to a Redfin report, 53.6% of home offers by Redfin agents experienced competition in November 2020, down from 58.5% in October. This marks the seventh consecutive month where over half of offers faced bidding wars, attributed to low mortgage rates and a housing shortage. San Diego led with a 75.3% bidding-war rate, while Minneapolis had the lowest at 34.6%. Condominiums were less likely to face competition, with 38.3% of offers contending. Year-over-year, new listings in San Diego grew by 13% in November.