Why Redfin Stock Fell 14% This Week
Shares of Redfin (NASDAQ: RDFN) were down 13.6% this week at Thursday's close, according to data provided by S&P Global Market Intelligence, amid a barrage of worrisome real estate industry headlines.
While it certainly hasn't helped that the broader stock market has drifted lower this week -- with both the S 500 and indexes down more than 2% -- Redfin's losses have been significantly steeper as investors grapple with the implications of bad real estate news for the near-term performance of the leading online real estate stock.
Ironically, much of the bad news came from Redfin's own data; on Tuesday, the company published a blog post noting that the average homebuyer must earn a whopping $114,627 annually to afford a median-priced U.S. home -- up 15% from a year ago, up over 50% since the start of the pandemic, and around $40,000 more than a typical American household earns. That's also the highest annual income necessary to afford a home on record, Redfin said, even as average wages have climbed only 5% over the past year.
Source Fool.com
