Why Redfin Stock Plunged 79% in the First Half of the Year

Real estate tech stocks have gotten hit hard this year, perhaps none more so than Redfin (NASDAQ: RDFN). Shares of the online real estate brokerage plunged 79% through the first half of the year, according to data from S&P Global Market Intelligence, as the pandemic-fueled boom in the housing market has rapidly disappeared. Mortgage rates have jumped and prices have gotten out of reach for millions of prospective home-buyers. At the same time, the reopening of the economy means that pandemic-related demands for things like more space, a yard, and a home office have faded.

As you can see from the chart below, the stock has fallen steadily throughout the first six months of 2022, dropping sharply in February on its earnings report. Later in the year, Redfin also announced that it was laying off 8% of its workforce.

Source Fool.com