Redfin Corporation - RDFN STOCK NEWS

According to a new report from Redfin (NASDAQ: RDFN), homebuyers with a $2,500 monthly budget can afford a home priced $33,250 higher than last year due to historically low mortgage rates. At a 3% mortgage rate, buyers can afford a $516,500 home, compared to $483,250 in July 2019, marking a 6.9% increase in purchasing power. However, the share of affordable homes has decreased, with only 70.6% being accessible on that budget in July 2020, down from 71.9% in July 2019.

According to Redfin's latest report, the U.S. housing market continues to gain momentum, with the Redfin Homebuyer Demand Index rising 29% from pre-pandemic levels. Pending home sales increased 20% year-over-year, marking the largest annual gain since October 2015. Home prices climbed 11% compared to the previous year, reflecting ongoing demand despite limited supply. Although new listings grew by 4.1%, active listings fell 28% compared to last year. The average sale-to-list price ratio reached a record 99.2%, indicating a highly competitive market for buyers.

In July 2020, 27.8% of users on Redfin.com sought to move to a different metro area, a rise from previous quarters. The pandemic has intensified migrations from costly coastal cities to affordable locations like Sacramento, Phoenix, and Las Vegas, with Sacramento now leading the trend. The migration report analyzed over 1.5 million searches, indicating significant net inflows to these areas. Despite low inventory, Las Vegas remains attractive due to no state income tax and affordable housing options. Conversely, coastal cities like New York and San Francisco are experiencing high outflows.

A recent report by Redfin reveals that 24.5% of home sellers in the San Francisco area lowered their listing prices during the four weeks ending August 16, the highest rate since 2015. This is more than double the rate from a year prior, indicating a significant shift in the housing market. The number of homes for sale surged by 75% year-over-year, contributing to price cuts as buyers seek better deals amid uncertainty. The median sale price of homes reached $1.5 million, reflecting a 6.6% increase year-over-year, but still below the national average increase of 11.4%.

In the four weeks ending August 16, the typical home sold was 3.7% larger than a year ago, with sales of large homes up 21% year over year nationwide in July, compared to 10% for medium-sized and 2.3% for small homes. Despite the trend towards larger homes due to pandemic-induced preferences, small homes showed greater price increases, with a rise of 8.1% to $199,900. Large homes, meanwhile, increased by 6.7% to $539,000. New listings for large homes grew by 7.6%, while total home inventory has declined by about 25% across all categories.

Redfin Corporation (NASDAQ: RDFN) announced that Chief Financial Officer Chris Nielsen will present at the D.A. Davidson 19th Annual Software and Internet Virtual Conference on September 9, 2020, at 4:00 p.m. ET. Interested investors can access a live webcast and replay through the company’s investor relations site. Redfin is a technology-driven real estate company operating in over 90 markets across the U.S. and Canada, saving customers over $800 million since 2006.

On August 25, 2020, Redfin (NASDAQ: RDFN) reported record-high home prices and significant year-over-year gains despite typical seasonal declines. For the week ending August 16, the Redfin Homebuyer Demand Index rose 29% compared to pre-pandemic levels, with a median home price of $316,375—an 11% increase from last year. Pending home sales were up 15% from 2019, although signs of a seasonal slowdown appeared. The market is characterized by high demand and limited inventory, as active listings dropped 28% from the previous year, keeping prices elevated.

Sales of newly-built homes surged by 10.1% year-over-year in July, returning to pre-pandemic levels, as reported by Redfin. Existing home sales rose 5.3% during the same month. However, inventory of new homes fell 28.4%, the largest decline since 2013. Despite the drop, newly-built homes represent one in five houses for sale, the highest share recorded. Residential construction projects increased by 23.4%, though a lumber shortage could impact future growth. The median price of newly-built homes rose to $375,000, while existing homes jumped to $308,000.

Redfin (NASDAQ: RDFN) announced the appointment of Kerry D. Chandler to its board of directors. Chandler, who is the chief human resources officer at Endeavor, brings extensive experience from previous roles at Under Armour, the NBA, and Disney. Redfin's CEO, Glenn Kelman, expressed enthusiasm about Chandler's strategic and values-driven approach, noting the company's growth in its mortgage business. Chandler aims to enhance Redfin's employee culture and operational efficiency during a pivotal time for the company.