Redfin Corp - RDFN STOCK NEWS

Redfin (RDFN) reports that homebuyers have experienced a significant reduction in purchasing power as mortgage rates hit 7% on October 28. A buyer with a $3,000 monthly budget can now afford a $442,500 home, down from $475,750 in mid-September when rates were at 6.11% - representing a $33,250 decrease in purchasing power. The monthly payment on the median U.S. home price of $428,000 has increased by approximately $200 to $2,895. The rate increase is attributed to investor concerns about increased government spending and strong economic indicators affecting potential Fed rate cuts.

Property tax bills have surged dramatically in major U.S. metros since 2019, with Florida housing three of the five cities experiencing the largest increases. Indianapolis leads with a 66.7% increase to $205 monthly, followed by Atlanta (65.8% to $239), Jacksonville (59.6% to $228), Tampa (56.7% to $250), and Miami (48.1% to $367). The surge in Florida is attributed to skyrocketing home values, increasing natural disasters requiring climate-resiliency investments, and population growth demanding more government services. Nationwide, property taxes have increased nearly 30% since 2019 to a monthly median of $250.

Redfin (NASDAQ: RDFN) has scheduled its third-quarter 2024 financial results announcement for Thursday, November 7, 2024, after market close. The company will host a live webcast conference call to discuss the results at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The webcast will be accessible through Redfin's Investor Relations website. Redfin operates as a technology-powered real estate company offering brokerage, rentals, lending, title insurance, and renovations services across more than 100 markets in the U.S. and Canada.

According to a new Redfin survey conducted by Ipsos in September 2024, 82% of U.S. residents support rent increase caps. The support spans across political affiliations, with 86% of Democrats and 79% of Republicans favoring such measures. The survey, which included 1,802 renters and homebuyers, shows strong support from both renters (86%) and homeowners (78%). Despite public support, Redfin economists warn that rent control could worsen long-term affordability by discouraging new housing development. In California, where statewide rent control already exists, 78% of respondents support caps on rent increases.

Redfin reports strong homebuying demand despite rising mortgage rates and election uncertainty. Pending U.S. home sales increased 3.5% year over year during the four weeks ending October 20, marking the biggest increase in three years. The Redfin Homebuyer Demand Index reached its highest level since May, up 3% year over year. Mortgage rates have risen to 6.44%, up from 6.08% in late September, with daily averages hitting 6.92%. The median U.S. monthly housing payment reached $2,587, near its highest level since July. While mortgage-purchase applications fell 5%, new listings rose 2.2% annually, and pending sales increased in 35 of the 50 most populous U.S. metros.

Redfin's recent survey reveals significant patterns in neighbor disputes over politics and racial issues. 18.7% of respondents reported political disagreements with neighbors, with men (27.1%) being twice as likely as women (13.4%) to engage in such disputes. The survey, conducted by Ipsos in September 2024, showed that Trump voters (23.1%) were more likely to have political disagreements than Harris voters (19.5%).

Generation Z (26.4%) and Millennials (23.5%) reported higher rates of political disputes compared to older generations. Additionally, 11.9% of respondents experienced disagreements over racial issues, with similar demographic patterns. The study also found that 30.4% of respondents regularly engage in political conversations with neighbors, with homeowners and younger generations showing higher engagement rates.

Redfin reports that U.S. home prices grew 0.5% in September on a seasonally adjusted basis, the fastest pace since April. This marks the third consecutive month of increasing growth rates. Year-over-year, prices rose 6%, the smallest annual increase since December.

The Redfin Home Price Index (RHPI) shows that despite improved mortgage affordability in September, with rates dropping as low as 6.08%, home prices continue to rise due to demand outweighing supply. There are approximately 20% fewer homes on the market compared to five years ago, primarily because many homeowners secured low mortgage rates during the pandemic.

Among the 50 most populous U.S. metro areas, 13 recorded a seasonally adjusted drop in home prices in September. The largest declines were in San Antonio, TX (-1%), Fort Lauderdale, FL (-0.9%), and Fort Worth, TX (-0.5%). The highest gains were in Nassau County, NY (1.7%), Philadelphia (1.6%), and Virginia Beach, VA (1.4%).

Redfin reports a 2.5% month-over-month increase in pending home sales for September 2024, the largest since January 2023. This jump is attributed to lower mortgage rates, which fell to a two-year low of 6.08% in late September, enhancing buyers' purchasing power. However, existing home sales dropped to a record low of 4,023,067 (seasonally adjusted annual rate), excluding the pandemic's start.

The median home sale price rose 3.9% year-over-year to $428,212, driven by a persistent housing shortage. New listings increased slightly but remained 17.7% below pre-pandemic levels. The average 30-year fixed mortgage rate was 6.18%, down 1.02 percentage points from the previous year.

Florida's housing market showed significant cooling, with West Palm Beach experiencing a 23% year-over-year decline in closed home sales, the largest among major U.S. metros. Recent hurricanes may further impact October sales in the region.

Redfin reports that pending U.S. home sales rose 3.2% year over year during the four weeks ending October 13, marking the biggest increase in three years. This rise is attributed to mortgage rates falling to a two-year low in late September. However, recent weeks have seen mortgage rates tick up, with the weekly average 30-year rate at 6.32%.

Home prices are also increasing, with the median sale price up 4.7% year-over-year, the largest uptick since March. This has pushed the typical homebuyer's monthly payment up nearly $100 from a month ago. Despite rising rates, demand remains strong in many areas, with pending sales up in 34 of the 50 most populous U.S. metros. However, some indicators suggest a potential slowdown, with home tours and mortgage-purchase applications flattening out.