All articles tagged with #redfin
The FTC is suing Zillow and Redfin, alleging their partnership to syndicate rental listings and restrict Redfin's competition violates antitrust laws, potentially harming renters and landlords by reducing options and increasing costs.
Attorneys general from five states sued Zillow and Redfin, alleging they colluded to eliminate competition in the online rental housing market through a deal that paid Redfin to shut down its rental advertising business, potentially harming consumers and renters. The companies deny the allegations, asserting their partnership benefits consumers and the market. The lawsuit seeks to prevent further anti-competitive practices and possibly restructure the companies to restore competition.
Federal regulators have accused Zillow of paying Redfin $100 million to cease competing in the home rental advertising market, alleging this violates antitrust laws and harms consumers by reducing competition. Zillow claims the agreement benefits renters and property managers, while Redfin denies the allegations.
The FTC is suing Zillow and Redfin, alleging they violated antitrust laws by making a deal where Zillow paid Redfin $100 million to be the exclusive provider of multifamily rental listings, which allegedly eliminated competition and harmed consumers. The case seeks to restore competition and prevent further anticompetitive conduct.
The FTC has sued Zillow and Redfin for an illegal agreement to eliminate Redfin as a competitor in the rental advertising market, involving a $100 million payment from Zillow to Redfin to cease competing and serve as an exclusive listing syndicator, which is alleged to violate antitrust laws and harm competition and consumers.
Canadian home searches in the U.S. have dropped significantly, by over 26%, due to tariffs and trade tensions under President Trump, marking a decline in their long-standing interest in U.S. real estate.
Redfin predicts a potential housing market bubble deflation in 2025, with housing prices expected to drop and a shift towards a buyer's market due to increased listings and higher mortgage rates, which are forecasted to remain around 6.8% through the year.
Redfin Corp. has revised its mortgage rate projections upward to 6.8% following Donald Trump's election, citing market expectations that he will implement tariffs. This adjustment reflects concerns about potential economic policies under Trump's administration, impacting American homebuyers.
First-time homebuyers now need to earn nearly twice as much money to afford a starter home compared to pre-pandemic times, with the median income being 11% higher than what's needed. The monthly housing payment for a starter home has jumped 8.2% from a year earlier, reaching $1,896, due to elevated mortgage rates and high home prices. Redfin data shows that a typical American household earned an estimated $84,072, up 5.5% from a year earlier, but incomes are not keeping pace with the rate of starter-home costs. The pandemic has changed the definition of a starter home, with the most affordable homes being smaller and often requiring more work, making them even more costly.
Redfin CEO Glenn Kelman is optimistic about the company's future following the $418 million settlement the National Association of Realtors reached over commission bundling and inflating. Redfin charges a 1% to 1.5% fee for selling and buying on its platform, compared to traditional brokerages' 2.5% to 3%. Despite recent challenges, Redfin saw a surge in listing and homebuyer demand after the settlement news. Kelman believes consumers should have a choice in paying buyer's agents and is confident in the company's business model. However, Redfin is facing its own lawsuits, including one alleging conspiracy to inflate commissions.
The housing market is experiencing a bumpy start to 2024, with pending sales dropping 8% due to rising mortgage rates and harsh winter weather. High housing costs are also pricing out potential homebuyers, but some house hunters are still touring properties. Redfin's Homebuyer Demand Index has shown a slight increase, and new listings are up 7% year over year. However, mortgage rates are climbing again, impacting demand, while some local lenders are offering rates in the 5% range for new construction projects.
Content creator Nathan Graham's purchase of a tiny home on Amazon for $38,999, which can be found for as low as $20,000, has garnered attention as a potential solution for the housing affordability crisis. Redfin's chief economist views these compact dwellings and accessory dwelling units (ADUs) as a tool for increasing housing stock, promoting affordability, and generating income. These tiny homes are seen as a viable solution in states like California, where legislation has been passed in favor of ADUs, and homeowners can rent out these units or house family members to address the housing affordability crisis.
The U.S. housing market is showing signs of renewed buyer interest as the median monthly mortgage payment has dropped to $2,361, the lowest in nearly a year, due to a decrease in mortgage rates. Redfin's Demand Index indicates a 10% increase in early-stage homebuying demand, with the Homebuyer Demand Index reaching its highest point since August. Despite a year-over-year decline in pending sales, the market is seeing the smallest drop in two years, and new listings have increased by 10%. Mortgage rates have slightly risen since the end of December, but overall, the lower payments and increased inventory are bringing some buyers back into the market.
The US housing market in 2023 was the least affordable since 2013, with only 15.5% of homes being affordable for the typical household, according to Redfin. This is a decrease from 20.7% in 2022 and the lowest share ever recorded by Redfin. The total number of affordable homes for sale also dropped by 40.9% compared to the previous year. The decline in affordability is attributed to high mortgage rates, rising home prices, and a decrease in available listings. However, Redfin predicts that affordability may improve in 2024 due to lower mortgage rates and an increase in listings.
Declining mortgage rates are enticing sellers to list their homes, leading to an increase in new listings and consultations with Redfin agents. The housing market, which had been stagnant in 2023, is showing signs of thawing as sales are expected to rise after the holiday season. Despite a decrease in mortgage-purchase applications, buyers are showing interest in lower rates, and economists predict a surge in activity in the new year.