Redfin Corp (RDFN) experienced a significant 10.34% plunge in its stock price during Thursday's intraday trading session, following the company's release of disappointing fourth-quarter 2024 earnings results and concerns over the worsening housing market conditions in Florida, one of its key markets.

The real estate technology company reported a quarterly adjusted loss of 29 cents per share, missing analyst estimates of a 24-cent loss. Despite revenue coming in slightly above expectations at $244.3 million, Redfin's adjusted EBITDA of $2.9 million fell short of the consensus estimate of $4.75 million.

The earnings miss was exacerbated by Redfin's report that Florida experienced a record high level of homes for sale in January 2025, with inventory surging 22.7% year-over-year to 172,209 homes. This surge can be attributed to several factors:

• An influx of newly built homes for sale, as Florida has been building more homes than most states.
• Intensifying natural disasters, which have caused home insurance costs to skyrocket, prompting some homeowners to leave the state.
• A cooling in homebuyer demand, with pending home sales in Florida declining 9.3% year-over-year in January.
• A surge in condo inventory due to new regulations aimed at ensuring structural soundness, leading to soaring HOA fees.