Can This Real Estate Disruptor Recover From Its 95% Plunge in 2023?
With the real estate market grinding to a near halt in the second half of 2022, it shouldn't be too much of a surprise that many real estate stocks underperformed the stock market in the recent downturn. But few were hit as hard as Redfin (NASDAQ: RDFN). Even after a recent rebound, Redfin is down by nearly 95% from its highs.
However, there could be light at the end of the tunnel. Here's a rundown of why Redfin has performed so poorly, the steps the company has taken to fix its problems, and a realistic look at what could happen with the beaten-down stock in the next year or two.
In a nutshell, the biggest reason Redfin's stock has performed so poorly is the U.S. real estate market essentially ground to a halt as mortgage rates skyrocketed and home prices increased 40% from pre-pandemic levels.
Source Fool.com
