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103 days

Redfin Reports Demand For Vacation Homes Drops to Lowest Level Since at Least 2018

1. 2024 saw the lowest second home mortgage loans since 2018. 2. Mortgages for second homes fell by 5% year-over-year.

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Why Bearish?

The decline in second home mortgages could signal lower demand in this segment, impacting RDFN negatively, especially for its second-home listings and services. Historically, reductions in mortgage activity correlate with fewer transactions and lower market sentiment.

How important is it?

The article reveals significant data on the housing market that directly relates to RDFN's operations. A decrease in second home mortgages can influence RDFN’s future earnings and market strategy, thus warranting this importance rating.

Why Short Term?

The immediate impact of falling second home mortgage applications is likely to be reflected in RDFN's stock price as homebuyers adjust spending. Market adjustments typically happen within a few quarters as trends stabilize.

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SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — U.S. homebuyers took out 86,604 mortgages for second homes in 2024, the lowest level in records dating back to 2018 and down 5% from a year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This is according to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of second homes, primary homes and investment properties from 2018 to 2024. The term “vacation home” is use.

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