Redfin Corporation - RDFN STOCK NEWS

According to a report from Redfin, nearly 45% of homebuyers made offers on properties they hadn't visited in person, marking the highest rate since at least 2015. This increased from 28% last year, driven by factors such as health concerns due to the pandemic and heightened competition in the housing market. Moreover, 27% of house hunters sought to relocate to different metro areas, compared to 25% in 2019. Virtual home tours have surged by 243%, reflecting changing buyer behavior during the pandemic.

In June 2020, 19.9% of successful offers from Redfin agents waived the inspection contingency, a significant increase from 13.2% in June 2019. Similarly, 20.6% waived the appraisal contingency, rising from 17.4% last year. Bidding wars intensified, with over half of Redfin's offers facing competition. Record-low mortgage rates below 3% fueled buyer demand, while active listings plummeted by 20.7% year-over-year. Buyers are employing various strategies to enhance their offers, such as waiving contingencies, which can pose risks.

Redfin reports that home listing prices surged 13% to a record $328,500 for the four-week period ending July 12, 2020. Closed sale prices rose 6%, with sale-to-list price ratios hitting 99%. Homebuyer activity remained strong, with a 12% increase in home tours and a 33% rise in the demand index. Despite ongoing pandemic challenges, buyers are responding to lower mortgage rates. However, new listings are 5% lower year-over-year, exacerbating supply shortages.

The national median home price reached an all-time high of $311,300 in June, reflecting a 2.8% year-over-year increase, as reported by Redfin. Despite challenges from the coronavirus pandemic, home prices are on the rise, driven by strong buyer demand. Pending sales saw a 5.4% annual uptick, marking the first increase since February, while new listings fell 11.6%. Active listings also decreased 20.7%. The market remains competitive, with homes selling quickly and often above list price, indicating a sellers' advantage.

Redfin Corporation (NASDAQ: RDFN) will report its second-quarter 2020 results on July 30, 2020, after market close. A live webcast of the conference call discussing the results will occur at 1:30 p.m. PT / 4:30 p.m. ET. Investors can access the webcast on Redfin's Investor Relations website. An archived version will be available for three months post-call. Redfin operates as a technology-driven real estate company, offering brokerage and iBuying services, and aims to redefine the real estate market.

Home sales have surpassed pre-pandemic levels for the first time, with a 2% increase compared to January-February, as reported by Redfin. Despite rising COVID-19 cases, demand is driven by historically low mortgage rates, with the average 30-year fixed rate at 3.03%. Key indicators show a 10% rise in pending sales and a Redfin home-buying demand index 20% above pre-pandemic levels. However, new listings are insufficient, leading to a 29% decrease in homes for sale year-over-year, resulting in increased competition and rising home prices, with average sales up 7% to $310,000.

In June 2020, over 53.7% of Redfin offers faced bidding wars, marking an increase from 51.8% in May and 44.4% in April. The surge in bidding wars is attributed to low mortgage rates at 3.03% and a significant drop in home inventory, down 21.3% year-over-year. Notably, single-family homes had the highest competition rates at 56.2%. Boston recorded the most intense bidding wars, with 72.4% of offers encountering competition. The report underscores a competitive market despite economic uncertainties due to COVID-19.

The housing market in June showed signs of instability as pending sales fell by 8.2% year-over-year, contrasting a previous increase. After seasonal adjustments, the decline was 3%. New home listings decreased by 8.3% from last year, with active listings down 27%. Despite this, homes for sale are moving quickly, with 47% selling within two weeks. The median list price reached $330,000, up 12% from 2019. Mortgage rates hit a record low of 3.07%, but purchase applications fell by 2%. The outlook remains uncertain due to rising COVID-19 cases, particularly affecting sales in certain markets.

On July 6, 2020, Redfin reported that 15.9% of Black Americans applying for mortgages experience rejection, compared to 7% for white Americans. The widest disparities occur in cities like Milwaukee and San Francisco, where Black applicants face over a 10-point higher denial rate. While overall mortgage rejection rates have halved since the 2008 financial crisis, Black applicants frequently encounter barriers due to debt and credit histories. Efforts to close this gap include increased financial education and diversification in the lending industry.