Can This Real Estate Disruptor Recover From Its 95% Plunge in 2023?

Can This Real Estate Disruptor Recover From Its 95% Plunge in 2023?

With the real estate market grinding to a near halt in the second half of 2022, it shouldn't be too much of a surprise that many real estate stocks underperformed the stock

With the real estate market grinding to a near halt in the second half of 2022, it shouldn't be too much of a surprise that many real estate stocks underperformed the stock

market in the recent downturn. But few were hit as hard as Redfin (NASDAQ: RDFN). Even after a recent rebound, Redfin is down by nearly 95% from its highs. However, there

market in the recent downturn. But few were hit as hard as Redfin (NASDAQ: RDFN). Even after a recent rebound, Redfin is down by nearly 95% from its highs. However, there

could be light at the end of the tunnel. Here's a rundown of why Redfin has performed so poorly, the steps the company has taken to fix its problems, and a realistic look at what

could be light at the end of the tunnel. Here's a rundown of why Redfin has performed so poorly, the steps the company has taken to fix its problems, and a realistic look at what

could happen with the beaten-down stock in the next year or two. Why has Redfin fallen by 95% from the highs? In a nutshell, the biggest reason Redfin's stock has

could happen with the beaten-down stock in the next year or two. Why has Redfin fallen by 95% from the highs? In a nutshell, the biggest reason Redfin's stock has

performed so poorly is the U.S. real estate market essentially ground to a halt as mortgage rates skyrocketed and home prices increased 40% from pre-pandemic levels. Just

performed so poorly is the U.S. real estate market essentially ground to a halt as mortgage rates skyrocketed and home prices increased 40% from pre-pandemic levels. Just

to name a few statistics, home sales fell 35% year over year in November, the largest decline on record. Home price gains in that month were the smallest year-over-year figure

to name a few statistics, home sales fell 35% year over year in November, the largest decline on record. Home price gains in that month were the smallest year-over-year figure

since the market was essentially frozen in May 2020 because of the onset of the COVID-19 pandemic. Meanwhile, the supply of homes on the market increased 15% year over year in

since the market was essentially frozen in May 2020 because of the onset of the COVID-19 pandemic. Meanwhile, the supply of homes on the market increased 15% year over year in

early December, the largest inventory build since 2015, even though there were 20% fewer new listings. In other words, the inventory has grown because homes are lingering on the

early December, the largest inventory build since 2015, even though there were 20% fewer new listings. In other words, the inventory has grown because homes are lingering on the

market, not because more people are choosing to sell.

market, not because more people are choosing to sell.