Redfin Corp (NASDAQ: RDFN) saw its stock price plunge 14.92% in after-hours trading on Thursday, February 27th, 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 Q4 earnings per share of -$0.29, missing analyst estimates of -$0.24. Additionally, Redfin's adjusted EBITDA of $2.9 million fell short of the consensus estimate of $4.75 million, despite revenue coming in slightly above expectations at $244.3 million.

The earnings miss was compounded by Redfin's report that Florida, a crucial market for the company, 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.

While the overall U.S. housing market has shown some positive signs, such as slowing home price growth and declining mortgage rates, which could potentially boost buyer demand, the situation in Florida appears to be weighing heavily on Redfin's performance and outlook.