|Bid||28.35 x 1200|
|Ask||29.60 x 900|
|Day's Range||27.67 - 29.74|
|52 Week Range||9.63 - 32.77|
|Beta (5Y Monthly)||1.84|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul. 30, 2020 - Aug. 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.08|
Online real estate broker Redfin (NASDAQ: RDFN) has started to repopulate its employee ranks. At the time, Redfin put approximately 1,000 of its employees on furlough. Redfin is making these moves because of what it terms a "rapid rise" in demand for purchasing homes.
(Bloomberg) -- It’s the surprise of a spring selling season that’s been anything but normal: Buyers returning to the housing market have been battling over the few available properties.While sales are way down, the lack of inventory has propped up prices and led to bidding wars, even as economic fallout from the pandemic mounts and real estate agents adjust to new public health guidelines that have made it more difficult to market homes.“Since the pandemic began, demand fell off a cliff,” said Taylor Marr, an economist at Redfin Corp. “What most people overlook is that sellers also pulled back.”The supply-demand imbalance meant that roughly 40% of homebuyers that Redfin agents worked with recently faced competition when they tried to purchase a home. The rate was even higher in cities like San Francisco, Boston and even Fort Worth, Texas, where more than 60% of properties the company’s clients bid on received multiple offers.The U.S. housing market went into the Covid crisis with a supply shortage that was driving up prices beyond the reach of many buyers, even with years of low interest rates. That problem hasn’t gone away, despite the economic uncertainty. The number of active listings shrank by almost a quarter in April, compared with a year earlier, according to Redfin.Still, the market has cooled. Sales of existing homes are projected to fall 20% in April from a month earlier, according to estimates compiled by Bloomberg. That would follow an 8.5% drop in March. Construction of new houses plunged by the most on record in April, with builders waiting out the virus. That means new supply will be slower to materialize. The market dynamics are a shock to some buyers. Kenzo Teves, a 24-year-old business analyst for a pharmaceutical company, decided to start shopping for his first house this spring, because interest rates were so low. He had money saved for a down payment and was secure in his job -- factors he thought would help him find a home near Boston.In late April, he made his first bid on a three-bedroom house in Chelsea, Massachusetts, that was listed for $420,000. The property got six other offers and even bidding $30,000 over the asking price wasn’t enough to cinch the deal.“It’s pretty strange,” he said. “I would have thought that it would have tipped more to my favor as a buyer.”The inventory shortage is being felt in smaller cities, too. Kim Park, an agent with Keller Williams Realty in Boise, Idaho, said her business is down about 20% because sales have slowed. But bargains are still hard to find.She’s working with a young family with two kids and a rental lease coming up for renewal next month. To buy a house for almost $300,000, they had to fight off three other bidders and pay $10,000 above asking price, Park said. They got it only because the winning bidder’s financing fell through.Homeowners in Boise are staying put, worried about about letting potential buyers in during the pandemic or upgrading to a more expensive property when employment is so tenuous.“It’s made our tight market that much tighter,” Park said.In Los Angeles, Sally Forster Jones said two of her clients bid unsuccessfully this month on two different houses. One was listed for about $800,000 and the other for less than $1.5 million. Each received more than 30 offers and are now in escrow at above the listed price. Jones declined to share specifics on the homes because her clients made backup offers and she doesn’t want to invite more competition.“I’m encouraging my sellers to put their property back on the market,” she said. “The fact that there’s limited inventory is to their advantage right now.”Not all real estate agents see cutthroat competition. Nina Hatvany, a luxury agent with Compass in San Francisco, said buyers are coming back to the market but the complications of showing houses during a pandemic has weeded out all but the most motivated people. And, even then, there’s sometimes a mismatch between what people think a property is worth.“I’ve got plenty of buyers saying, ‘I’m ready to buy if it’s a good price,’” she said. Meanwhile, “the sellers are worried about taking a big hit.”Home prices will hold up, at least through the summer, but declines are coming, said Mark Zandi, chief economist at Moody’s Analytics. Once foreclosure moratoriums and forbearance programs end, lenders will start repossessions as unemployment persists. Ultimately, as many as 2 million homeowners will lose properties because of the the pandemic, he said.In the near term, buyers are going to have to slug it out, especially for the types of property that are most in demand. Redfin’s data show that houses listed below $1 million were the most competitive, partly because banks have tightened standards for jumbo loans, said Marr. With everyone sheltering in place, buyers are also more eager to buy single-family houses than condos.“Everyone wants a home with a yard,” Marr said.(Updates with drop in listings in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The financial repercussions are only just beginning to be felt, as are the changes in long-term consumer and business activity. Such has been the case at small technology-driven real estate broker Redfin (NASDAQ: RDFN). Surprisingly, the rally in activity on its real estate platform since then has been just as dramatic.
Good afternoon, and welcome to Redfin's financial results conference call for the first quarter ended March 31 2020. Joining me on the call today are Glenn Kelman, our CEO; and Chris Nielsen, our CFO.
What happened Shares of Redfin (NASDAQ: RDFN) popped 8% on May 8, following the release of the discount brokerage's first-quarter results. So what Redfin's revenue surged by 73% year over year to $191 million.
(Bloomberg) -- Americans are spending more time than ever at home. Seems like a good time to sell them a new house, according to Zillow.Zillow Group Inc. is preparing to fire up the company’s home-flipping business as robust search activity on the company’s websites shows that house-hunters are undeterred by social distancing measures or economic uncertainty.The company, which stopped purchasing homes in March, has seen consumers embrace virtual home tours and digital transactions, giving Chief Executive Officer Rich Barton confidence to start buying homes even as Covid-19 pandemic continues to rage.“My belief is that people are spending so much time at home they’ve discovered the shortcomings,”Barton said in an interview from a vacation house, where he’s holed up with his family. “I don’t have a home office. My kids are all over the house, using the WiFi. I’m in the bedroom. I don’t know, maybe I should have a house with an office.”Zillow shares jumped as much as 13% to $54.58 on Friday. That followed a double-digit surge on Thursday that turned the stock positive for the year.Zillow, best known for its home-search tools, has spent the last two years building a data-driven spin on home-flipping known as iBuying. In that business, it uses its website to make rapid offers to home-sellers; when the sellers accept, Zillow buys the home, makes some light repairs, and puts the home back on the market.The business loses money, but has grown quickly – it generated $770 million in revenue in the first quarter, more than double what the company took in through its core advertising business.Softbank-backed Opendoor, which pioneered the model, has resumed buying homes. Redfin Corp., another iBuyer, restarted activity this week in Austin, Denver and the Inland Empire east of Los Angeles. The company said it expects to sell the homes it bought before halting the service in March for about 2% less than it had originally assumed.Redfin Now, as the iBuying service is known, “performed better in a downturn than some had feared,” CEO Glenn Kelman said on an earnings call Thursday.Zillow finished the first quarter with 1,791 homes on its books, according to a shareholder letter on Thursday. But Barton said that he’s not concerned about adding inventory while there’s still potential for another round of shelter-in-place orders.“Even if a second wave comes, we have learned, and the industry has learned -- and the customer is beginning to learn – that the transaction can be conducted safely,” he said.(Updates share price.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Redfin (RDFN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Redfin Corporation...
Redfin (RDFN) delivered earnings and revenue surprises of 33.33% and 7.44%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
SEATTLE , Feb. 10, 2020 /CNW/ -- (RDFN) — Vancouver , Montréal and Toronto are the most walkable cities in Canada in 2020, according to a new ranking from Redfin (www.redfin.ca), the technology-powered real estate brokerage.
Redfin (RDFN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Previously owned home rose 3.6% in December boosted by low interest rates that pushed sales of both multi-family and single-family homes.
(Bloomberg) -- San Francisco’s towers and Silicon Valley’s sprawling tech campuses have long overshadowed downtown San Jose in the Bay Area. But developer Erik Hayden says the time has finally come for the city -- thanks, in part, to a Trump-era tax break meant to help low-income communities.He and his partners at Urban Catalyst just unveiled their latest purchase in the city: a $24 million deal for a shuttered movie theater, which they plan to convert into an office development called Paseo.In just a few months, Urban Catalyst has become one of the most-active developers in California’s third-largest city, laying out plans for apartments, offices, a Marriott-branded hotel and even a senior-living facility -- much of it just steps from where Google is planning a new campus for 20,000 workers.And they have more coming as part of an effort to raise as much as $250 million to tap generous new federal subsidies for investing in areas designated as “opportunity zones.”“We definitely would not have as much interest in San Jose, especially in downtown, were it not for the opportunity zone,” Hayden said. “It was crucial.”That assertion is at the heart of a debate over one of the most controversial incentives in the tax package that President Donald Trump signed into law in late 2017: Would investment in opportunity zones have happened were it not for the tax breaks?Critics of the program have pointed to zones in areas that were already up-and-coming to argue they’re a waste of tax dollars. Proponents, meanwhile, have highlighted investments that have come together faster, and bigger, because of the incentives. Teasing out who’s right may never be possible, said Nate Jensen, a professor of government at the University of Texas at Austin, who studies economic development incentives.“The bottom line is we are not going to be able to evaluate this, even if we had all the project-level data,” he said.San Jose makes for an interesting case study. Long a bedroom community for Silicon Valley, the city has been trying to flip the script by bringing jobs and businesses downtown to bolster its tax base. Transit upgrades years in the making are moving forward. Roughly three years ago, Google began snapping up properties for its eventual campus.It’s all had the effect of spurring projects. Almost no new office space was finished in San Jose’s central business district in the past 10 years, according to research from CBRE Group Inc. In the coming decade, however, developers may deliver nearly 14 million square feet. And that doesn’t count the as much as 7.3 million square feet Google is planning.Construction costs remain high, so the opportunity zone benefits are “without question” important for some new developments, said Erik Hallgrimson, a broker with Cushman & Wakefield in San Jose.The real estate boom has provoked a backlash, with many residents worried that the arrival of thousands of tech workers will put housing out of reach in one of the more affordable parts of the Bay Area. Median home prices in the city almost touched $1.2 million in the spring of 2018, before moderating. They were $938,000 in October, according to Redfin Corp.Hayden estimated his developments will contribute about $25 million toward affordable housing, enough to create more than 120 below-market units. Urban Catalyst’s projects will also add $100 million to local coffers in property taxes through 2030, he said, more than the tax breaks his investors will likely reap because of the opportunity-zone benefits.Hayden’s fund has also allowed investors who’ve made money in tech to parlay some of their capital gains into redeveloping San Jose -- something they might not have done absent the tax benefits. More than half of the $42 million Urban Catalyst has raised to date has come from the sale of stock, including from executives at Apple Inc. and Facebook Inc.“This is the whole impetus of the program -- get money off the sidelines and invest in lower-income areas,” he said.(Updates with lack of past development in 10th paragraph. An earlier version of this story corrected the penultimate paragraph to say more than half the money comes from stock sales)To contact the reporter on this story: Noah Buhayar in Seattle at email@example.comTo contact the editors responsible for this story: Craig Giammona at firstname.lastname@example.org, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The latest spike in long-term bond yields may be negative for housing ETFs, but gradual adoption of technology in the space could prove to be a shot in the arm.
Redfin (RDFN) delivered earnings and revenue surprises of 75.00% and 3.71%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?