- Redfin’s stock dropped as much as 24 percent on Friday after a disappointing earnings report.
- Second-quarter revenues dropped 21% from 2022.
- Glenn Kelman, CEO of Glenn Kelman, told analysts Thursday that “sales volume is at a record low.”
Redfin stockThe plunge on Friday was the The housing market is in a slumpEarnings for the second quarter of the real estate firm were impacted.
Stocks dropped as much as 24 % following the release of earnings on Thursday. The stock was trading at $11.21 before midday in New York. This is a 22% drop.
Seattle’s firm saw its revenue drop 21% compared to a year earlier, falling just short of Wall Street’s expectations. The per-share loss was 25 cents. This is better than Wall Street expectations of a 32 cent loss per share.
Glenn Kelman, CEO of Glenn Kelman, told analysts Thursday that “sales volume is at a record low.”
Redfin expects revenues to drop by about 13% in the third quarter to $265-$279 millions and losses to shrink to $21-$30million from $90million.
The company has made several rounds of layoffs in the last year. It reduced its sales staff headcount by a third while also reducing other costs. RedfinNow is closing its home flipping business..
Kelman added that Redfin’s gross margins for its core real-estate services improved by nearly two percentage points. “We think Redfin will be able to grow profitably.”
The lack of home inventory and the high mortgage rates has kept many homeowners from moving, and house hunters at bay. Many are still holding onto lower mortgage rates they secured years ago.
In the meantime, rising rates and home prices have made it more difficult to afford housing. Redfin data shows that the typical monthly mortgage payment in the US was $2,605 in the four weeks that ended July 30 — A 19% increase compared to a year earlier.
