Redfin Posts 5% Year-Over-Year Growth in Q4 as Home Supply Shortage Continues

Tech-powered residential real estate broker Redfin (NASDAQ: RDFN) said its fourth-quarter 2020 revenue increased 5% year over year to $244.5 million -- well ahead of its estimate for $226 million to $233 million provided a few months ago. Full-year 2020 revenue ended 14% higher to $886.1 million as Americans moved out of the densest cities and into the suburbs during the pandemic.

Redfin's results in the second half of 2020 were held in check because of a nationwide shortage in homes for sale. CEO Glenn Kelman said on the quarterly conference call that RedfinNow -- its segment that buys and sells homes directly from homeowners versus acting as a broker, and which competes with Opendoor Technologies (NASDAQ: OPEN) -- was primarily responsible for holding back growth. Redfin has also been dealing with a shortage of agents to assist home buyers and is in an ongoing effort to recruit. This agent shortfall is expected to last until summer 2021.

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Source Fool.com