Why Redfin Is Suspending Its iBuying Program
Redfin announced that it will halt its iBuying arm, RedfinNow, due to the housing market’s uncertain direction amid the coronavirus pandemic. This news comes after the company banned open houses to help slow the spread of the virus. Because of decreasing buyer demand and ambiguous market conditions due to COVID-19, Redfin says that it cannot give accurate home value estimates, and therefore cannot make instant offers on properties. The company stresses that it is not ending RedfinNow entirely, but instead is putting it on pause until there is a clear path forward.
The growing uncertainty in the housing market has claimed its first iBuyer victim.
Redfin announced Wednesday that it is hitting the pause button on its homebuying efforts, which it calls RedfinNow.
“On March 18, 2020, we announced that RedfinNow, our business that buys homes directly from homeowners and resells them to homebuyers, will temporarily pause making offers on homes,” the company disclosed Wednesday in a filing with the Securities and Exchange Commission.
In a statement, Redfin CEO Glenn Kelman said that the decision was made in response to the ambiguous nature of the housing business right now.