|July 24, 2018|
|Redfin Launches Compete ScoreTM to Help Homebuyers Understand What it Takes to Win a Home in Cities Across the Country|
With a Compete Score of 100, Seattle, San Jose and Fremont, Calif., are the Most Competitive Cities in the U.S.
SEATTLE —July 24, 2018 — (NASDAQ: RDFN)-- Redfin (www.redfin.com), the next-generation real estate brokerage, today announced Redfin Compete Score, a rating of housing competition in cities and neighborhoods on a scale of 0 to 100, where 100 is the most competitive. Compete Score can be found on Redfin.com pages for individual listings as well as on the Home Values page for any city or neighborhood where more than 25 homes were sold in the last year. Redfin is also introducing the first Compete Score Report to calculate the most and least competitive cities and neighborhoods across the country.
Because Redfin has a customer database that is used by every agent for every customer at every step of buying or selling a home, Compete Score is determined using data that no other brokerage or website has. Compete Score is calculated using Redfin proprietary data, including the number of competing offers and number of waived contingencies for homes sold by Redfin, as well as data from local multiple listing service (MLS) databases, including the sale-to-list price ratio and number of days on market for homes in that area.
"Using data and insights that only Redfin has, Compete Score helps home buyers navigate the competition and sellers understand what to expect when listing a home," said Matt Lerner, Senior Vice President, Product & Design at Redfin. "Compete Score helps sellers understand how long a home could take to sell, whether it's likely to sell for more or less than the asking price and how to list the home at a price that is likely to attract multiple offers. For buyers, Compete Score helps them understand how aggressive they need to be to win the home they want, including how much to bid, whether they need to waive contingencies and how fast they need to act."
"Compete Score is an example of how Redfin captures more data than any other brokerage or website. We do this because every customer asks for service via our online tools, and every agent uses those tools to deliver better service, in preparing offers, activating listings, scheduling tours and negotiating sales," said Glenn Kelman, CEO of Redfin. "No human being could make sense of so much data, but Redfin's software processes this information to recognize subtle shifts in the market from month to month and neighborhood to neighborhood. As a result, our customers will know when a neighborhood is getting hot, or when the whole market is about to turn, before anyone else."
The first Compete Score report finds that, among U.S. cities with populations of at least 200,000, the most competitive cities are Fremont and San Jose, Calif. and Seattle. The least-competitive large cities in the U.S. are New Orleans, LA and El Paso, TX. In some cases, desirable neighborhoods may be less competitive than expected because they are more expensive and receive fewer offers.
Most Competitive Cities in the U.S.
Least Competitive Cities in the U.S.
"Many of the most competitive cities are technology hubs that have attracted an influx of people moving to the area for jobs, unmatched by the creation of new homes," said Taylor Marr, Senior Economist at Redfin. "This has led to intense competition and rising home prices. In San Francisco, Seattle and Denver, homes have become so expensive that many people are moving elsewhere in search of more affordable and less competitive housing markets."
In looking at Compete Score data for neighborhoods nationwide, more than 100 have a Compete Score of 97 or higher and six have a score of 100, the highest score possible. The vast majority are in the Seattle and San Francisco Bay Areas.
Most Competitive Neighborhoods in the U.S.
At launch, Compete Score is available for more than 8,200 cities and 13,000 neighborhoods across the country. In order to maintain accuracy, Compete Score is only available in areas where at least 25 homes have been sold within the last 12 months. Redfin will update Compete Score for all areas at the beginning of every month.
To read the full Compete Score report with the complete list of most and least competitive cities and neighborhoods across the country, click here.
To read more about how Compete Score is calculated and how it benefits home buyers and sellers, click here.
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.