Redfin Corp - RDFN STOCK NEWS

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.

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.