Redfin Corp - RDFN STOCK NEWS

The latest report from Redfin highlights significant growth in the housing market, with a 15% increase in median home sale prices year-over-year, reaching a record $322,148. Key metrics include a 29% rise in pending home sales and a 4% increase in mortgage applications from the previous week. Active listings hit an all-time low, dropping 29% from 2019, while the average sale-to-list price ratio rose to 99.5%. The Redfin Homebuyer Demand Index saw a 35% increase from pre-pandemic levels.

The national median home price rose 14.2% year-over-year to $335,900 in October, marking the second-largest annual increase recorded. Home sales surged 24% compared to last year, the largest gain on record, with new listings up only 12%. Active listings fell 22%, indicating a significant supply-demand imbalance. Major price increases were observed in Bridgeport, CT (+39%) and Memphis, TN (+30%). Analysts suggest a potential cooling in demand due to the pandemic, although competition remains high, with 35% of homes selling above list price.

Demand for second homes in the U.S. surged by 100% year-over-year in October 2020, according to a Redfin report. This continued trend marks the fourth consecutive month of triple-digit increases, compared to a 50% rise in primary home demand. Factors supporting this growth include record-low mortgage rates and a shift to remote work. However, this demand contrasts sharply with the financial struggles faced by many Americans due to the pandemic, highlighting a growing divide in the housing market.

In October, 56.8% of Redfin offers on homes faced competition, slightly down from 57.4% in September. This marks the sixth consecutive month of bidding rates exceeding 50%. Despite a recent peak of 59.3% in August, market competition remains robust, fueled by low mortgage rates and housing shortages. Home prices increased by 15% year-over-year in early November. Salt Lake City was the most competitive market at 75%, while Las Vegas recorded the least at 38.2%. Condos are seeing less competition, with only 41.4% of offers encountering bids.

According to a Redfin report, second-home destinations are increasingly becoming full-time residences as remote work persists. El Dorado County, CA leads the ranking of heated markets with a 16% year-over-year increase in median sale price, while Deschutes County, OR follows at 18%. Notably, regions like the Jersey Shore are experiencing a surge of buyers from urban areas, driving competition and prices higher, with some sales exceeding asking prices by $75,000. Conversely, New York City's boroughs, including Queens and Brooklyn, are cooling down, with significant outflows of residents seeking affordable housing.

Redfin Corporation (NASDAQ: RDFN) announced participation in two investor conferences this November. Chief Financial Officer Chris Nielsen will present at the RBC Capital Markets Global Technology Conference on November 17 at 10:40 a.m. ET and at the Stephens Annual Investment Conference on November 19 at 3:00 p.m. ET. Redfin integrates technology with real estate services, offering brokerage, iBuying, mortgage, and title services across over 90 markets in the U.S. and Canada. Since 2006, Redfin has saved clients over $800 million while facilitating transactions of more than 235,000 homes worth over $115 billion.