Back in July, Redfin paid $610,000 for this two-bedroom single-family home in Las Vegas. Just weeks later, Redfin put it back on the market with a $674,900 price tag. However, it was too late: Las Vegas was already slipping into a home price correction. Fast-forward to November, and the property remains unsold with a $499,900 list price—or 18% below its purchase price.
That type of looming loss explains why Redfin recently announced it's shutting down its algorithm-run iBuyer business. As long as the U.S. housing market remains in correction mode, the math just doesn't make sense.
