Redfin Corporation - RDFN STOCK NEWS

Redfin's latest report reveals that nine of the ten housing markets with the most significant buyer competition are priced below $500,000, showing over 10% price growth in the past year. El Dorado County, CA, leads the list with a 60% increase in home sales, despite its median price being $550,000. Conversely, major cities like New York and San Francisco are cooling down, with the Bronx experiencing a 43% drop in home sales. The report highlights shifting buyer preferences, with remote work driving demand for more affordable suburban areas.

The median home price in blue counties rose 13.1% to $346,000 during the four weeks ending September 6, 2020. Prices increased 11.5% in swing counties to $259,500, and 10.6% in red counties to $209,000. Housing supply tightened significantly, with active listings down nearly 35% in swing counties, 32% in red counties, and 22.2% in blue counties. Homes sold fastest in swing counties, with 43.5% going under contract within two weeks. Sales increased most in red counties by 15.9%. Notably, homes in blue counties sold closest to their asking price, at 99.3% of list price.

The national median home price rose 11.0% year-over-year to $328,400 in August, marking the largest increase since February 2014. Driven by low mortgage rates, homebuyer demand remains strong, although home supply is at a record low, with active listings down 22% year-on-year. Home sales increased by 10.2% compared to last year, with significant gains in areas like Bridgeport, CT. The competitive market shows a 32.0% of homes sold above list price, indicating a robust seller's market. New listings rose by 4.6% from the previous year, yet the supply-demand imbalance persists.

The Las Vegas housing market saw a 7.8% year-over-year increase in typical home-sale prices, reaching $310,000 in August 2020. Notably, 41% of homes sold within two weeks, a rise from 28.3% last year. Despite a 16.4% unemployment rate in the area, demand remains strong due to an influx of remote workers from high-cost states. Pending home sales increased 12.8%, while the number of homes for sale fell 18.7%. The pandemic has shifted local buyer needs, prompting demand for larger spaces and low mortgage rates.

Redfin (NASDAQ: RDFN) has expanded its cash offer service, RedfinNow, to homeowners in Palm Springs, California. This initiative allows sellers to receive an all-cash offer, providing flexibility in move-out dates and eliminating the need for home preparations, in-person showings, or open houses, particularly beneficial during the pandemic. The service targets homes built after 1940, aiming to create a seamless selling experience while catering to the market's rebound in buyer demand. The move is aligned with Redfin's growth strategy in Southern California.

According to a Redfin report, home prices in neighborhoods where Black people bought homes rose 7% in July 2020, exceeding the 6% increase in predominantly white neighborhoods. Home sales dropped 15% in Black neighborhoods versus 13% in white ones since the pandemic began. The study highlights a widening homeownership gap, worsened by the pandemic's economic impact. Notably, Newark saw a 14% price rise in Black neighborhoods, while San Francisco experienced a stark 32% decline in sales. The analysis indicates that Black homebuyers are disproportionately affected by higher prices and lower inventory.

The U.S. median home sale price surged 13% year-over-year to $319,178, marking the highest figure since October 2013, according to Redfin's latest report. Key highlights include a 28% increase in pending home sales and a 9% rise in new listings, both the largest since 2015. Despite these gains, active listings dropped by 28%, reaching an all-time low. The average sale-to-list price ratio hit a record 99.3%, while Redfin's Homebuyer Demand Index rose 21% from pre-pandemic levels. Challenges remain for first-time buyers due to escalating prices and changing market dynamics influenced by remote work.

The iBuyer market saw a dramatic decline in home purchases, with only 880 homes sold in Q2 2020, down 88% year-over-year. This marks the lowest volume since Q1 2017. Total iBuyer expenditures dropped to $195 million, significantly lower than $1.6 billion in the previous year. Despite this downturn, Redfin's iBuyers sold homes faster, with a median listing time of just 13 days. Notably, the median price for homes purchased by iBuyers fell to $241,100, down from $250,000 a year earlier. The analysis highlights changing market dynamics influenced by the pandemic.

In August, 54.5% of Redfin offers faced competition, indicating a slight decrease from 57.3% in July, yet marking the fourth consecutive month of over half encountering bidding wars. Coastal cities like San Francisco and San Diego remain the most competitive markets, with around 65% of offers facing multiple bids. Low mortgage rates, averaging 2.91%, and a housing shortage are driving demand. Homes priced under $1 million are particularly competitive, with 58.4% of offers in the $600,000-$800,000 range facing competition.