Stock Track | Redfin (RDFN) Plunges 10.34% on Disappointing Q4 Results and Florida Housing Woes

Stock Track
28 Feb

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.

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