redfin tuna Despite challenging real estate market conditions, modest growth occurred in the first quarter of 2024. The brokerage reported revenue of $225.5 million, up 5% from the first quarter of 2023. Loss in fourth quarter of 2023.
Redfin’s brokerage revenue hovers around $125 million, up 5% annually. Its mortgage income was $34 million, down 7% from the same period last year. At the same time, its rental income reached US$50 million, an increase of 16% over the same period last year.
“Market conditions have taken a turn for the worse recently, but Redfin improved in the first quarter of 2024,” Redfin CEO Glenn Kelman said in a statement. “Each of our business units performed at the level we set last quarter. At the top of the range, or above. Our plan to build a larger market based on rental and for-sale listings is paying off, although we are spending less on advertising than our main competitors. Still very intense.
Redfin’s mobile apps and website attract an average of nearly 49 million monthly users, compared with an average of 50 million users in the first quarter of 2023.
On the other hand, Redfin’s existing home sales market share in the first quarter of 2024 reached 0.77%, exceeding the market share in the fourth quarter of 2023.
Kelman highlighted the transformative impact of Redfin Next, a program that offers agents who trade on their own account up to a 75% commission share instead of a base salary. Initially launched in Los Angeles and San Francisco, the program has expanded to include markets such as San Diego, Chicago, Connecticut, Dallas, Miami, New York, and Washington, D.C., with more expansion planned this summer. The company has reportedly recruited more than 130 top brokers to join the brokerage under the Redfin Next program.
“Our brokered sales program is working,” Kelman said in a statement. “Market share, loyalty sales and luxury goods sales all increased, with the strongest growth in four markets in California, which eliminated agent salaries and replaced them with higher bonuses. Revenue increased year-on-year, and gross profit increased by Bigger, adjusted EBITDA grew the most, which tells us we can spend less and make more money.
Additionally, Redfin is deploying buyer agreements nationwide through its Sign & Save program, while emphasizing agent-led tours through All You Can Meet.
Kelman also highlighted the launch of Ask Redfin, an AI-powered virtual assistant that helps buyers quickly find information about homes for sale.
Late last week, Redfin announced it had reached a nationwide settlement with plaintiffs in the combined lawsuits by Gibson and the Umpa Commission, according to a filing with Redfin. Securities and Exchange Commission (U.S. Securities and Exchange Commission).
As part of the settlement, Redfin agreed to pay $9.25 million to a qualified settlement fund within 30 days of the court’s preliminary approval of the agreement. The filing did not detail whether the company agreed to any changes in business practices as part of the settlement.
red fin joins Douglas Elliman, First Real Estate Group, real estate in the world, anywhere, weight/maximum, Keller Williams, compass, american family services and real brokerage Resolved commission lawsuits brought by homebuyers and sellers alleging artificially inflated agent commissions.
this national association of realtors Commission lawsuits have also been settled across the country. The agreement received preliminary court approval in late April.
