red fin Despite the difficult housing market conditions, the first quarter of 2024 saw some growth. The brokerage’s revenue was $225.5 million, an increase of 5% compared to the first quarter of 2023. However, the net loss was $66.8 million, up from the $60.8 million net loss in the first quarter of 2023 and significantly higher than the $23 million loss. In the fourth quarter of 2023.
Redfin’s brokerage revenue hovered around $125 million, up 5% year over year. Mortgage income was $34 million, down 7% from the previous year. Meanwhile, rental revenue reached $50 million, an increase of 16% year-on-year.
“While market conditions have deteriorated recently, Redfin improved in the first quarter of 2024,” Redfin CEO Glenn Kelman said in a statement. “Each of our business segments performed at or above the ranges we set last quarter. Our focus on building a larger marketplace based on rental and sales listings Our plan is paying off: we continue to compete well in terms of traffic, even though we spend less on advertising than our major rivals.”
Redfin’s mobile app and website now have nearly 49 million average monthly users, compared to an average of 50 million users in the first quarter of 2023.
On another bright side, Redfin’s market share of existing home sales per unit in Q1 2024 reached 0.77%, exceeding its share in Q4 2023.
Kelman highlighted the transformative impact of Redfin Next, a program that offers agents up to a 75% commission split on self-sourced deals rather than base salary. The program initially launched in Los Angeles and San Francisco, but has expanded to include markets such as San Diego, Chicago, Connecticut, Dallas, Miami, New York and Washington, D.C., with further expansion planned this summer. The company has reportedly hired more than 130 of his top production agents as intermediaries under his Redfin Next program.
“Our brokerage sales efforts are going well,” Kellman said in a statement. “Market share, royalty sales, and luxury sales increased, with the strongest growth seen in four markets in California, where agent salaries were eliminated in lieu of increased bonuses. Sales improved year over year. However, gross margins improved even more, with adjusted EBITDA improving the most, showing that we can earn more while spending less.”
In addition, Redfin is expanding buyer agreements nationwide through its Sign & Save program and focusing on 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.
According to reports, Redfin announced late last week that it had reached a nationwide settlement agreement with plaintiffs in the Gibson and Ampa commission consolidation lawsuit. document submitted to securities and exchange commission (SEC).
As part of the settlement agreement, Redfin agreed to pay $9.25 million into a Qualified Settlement Fund within 30 days of the court’s prior approval of the agreement. The filing did not provide details on whether the company agreed to changes to its business practices as part of the settlement agreement.
Joined by Redfin Douglas Elliman, Realty One Group, At world property, anywhere, RE/MAX, keller williams, compass needle, Home American Services and genuine brokerage In a settlement of a commission lawsuit brought by homebuyers and sellers alleging artificial inflation of agent fees.
of National Association of Realtors Commission lawsuits have also been settled nationwide. The agreement was preliminarily approved by the court in late April.
