Redfin Stock Slides After Analyst Says Its Listing Share Gains Are ‘Lagging’

“Our proprietary tracking of RDFN’s share of for-sale home listings shows that while RDFN’s listings share in the U.S. has ticked up in recent months due to seasonality, it is significantly lagging prior year periods,” White wrote.

Redfin data shows that from June 5 to July 2 of this year, the company had 90,020 new listings, a 25% decline from 2022.

Redfin told Barron’s that it will address any commentary about its stock price on its upcoming second-quarter earnings call on August 3, and declined to provide any other comment before then. The company previously said in its recent first-quarter earnings filing that a “shift in the macroeconomic backdrop had an adverse impact on consumer demand for our services, as consumers weighed the financial implications of selling or purchasing a home and taking out a mortgage.”

Higher mortgage rates and home prices have led to a slowdown in existing-home sales. Previously owned homes were sold at a seasonally adjusted annual rate about 20% lower than last year in May, as potential buyers have been avoiding high rates—and sellers want to stick with their lower mortgages.

Redfin, which employs its own real estate agents, has implemented three different rounds of layoffs in the last 13 months. The company attributed the cuts in its first-quarter earnings filing to an attempt to “align the size of our operations with the level of consumer demand for our services at that time.”

White believes these layoffs likely had an impact on Redfin’s market share—and that they will make it difficult for the company to improve the downward trend.

Shares of Redfin dropped 4.6% to $14.83 each on Wednesday. The stock has soared 249% so far this year.

Write to Angela Palumbo at [email protected]