Why Redfin Corp (RDFN) Is Soaring in 2025

We recently published a list of Why These 15 Real Estate Stocks Are Surging In 2025 . In this article, we are going to take a look at where Redfin Corp (NASDAQ:RDFN) stands against other real estate stocks that are surging in 2025.

For years, real estate stocks have been a source of anxiety for investors due to the scars of the Great Recession. That crisis has led to lingering skepticism, and many see real estate as a no-go zone today due to GDP growth turning negative quarter-over-quarter and expectations of a recession. Investors fear that a recession could drag these stocks down once more.

However, these companies have learned from the Great Recession, and some of them have delivered stellar gains so far. It is a good idea to keep an eye on the winners, as they could outperform during market downturns.

Even when the market experiences downturns, certain sectors still manage to excel remarkably. For instance, I discovered 15 Healthcare Stocks that are up the Most in 2025 in another article

Methodology

For this piece, I sifted through top real estate stocks based on their performance so far this year.

I'll also highlight how many hedge fund investors have stakes in these stocks. We focus on the stocks that hedge funds accumulate because the rationale behind this approach is straightforward: our studies indicate that mimicking the top stock choices from leading hedge funds allows us to surpass market performance. Each quarter, our monthly publication recommends fourteen small-cap and large-cap equities, delivering an impressive return of 373.4% since May 2014, which significantly outperforms its benchmark by 218 percentage points. see more details here ).

The image of a vibrant urban landscape symbolizes the firm's role within the property sector.

Redfin Corp (NASDAQ: RDFN )

Number of Hedge Fund Holders in Quarter 4 2024: 20

Redfin Corp (NASDAQ: RDFN), a tech-driven real estate firm, runs the top broker site in the U.S., offering brokerage, rental, lending, and title insurance services across more than 100 market areas.

Almost all of the stock's rise in 2025 can be traced back to an announcement made on March 10, 2025, stating that Rocket Companies plans to buy out Redfin. This news instantly ignited investors' interest and fueled speculations regarding the future prospects of the merged entity.

It is anticipated that this merger will generate substantial value for shareholders by combining Redfin’s real estate information and brokerage activities with Rocket’s expertise in originating mortgages, thereby uncovering fresh synergies and expansion possibilities.

The agreed-upon price target of $10.25 suggests an upward potential of 8.81%.

The RDFN stock has increased by 19.70% since the beginning of the year.

Overall, RDFN ranks 8th On our roster of rising real estate stocks in 2025, we recognize the appeal of RDFN. However, we firmly believe that investments in artificial intelligence (AI) stocks have stronger prospects for significant financial gains over a shorter period. Among these, one particular AI stock has seen growth since the start of 2025, whereas many well-known AI equities dropped roughly 25% during the same timeframe. Should you seek an AI investment with better potential than RDFN yet priced below five times its earnings, explore our detailed analysis on this opportunity. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .

Disclosure: None. This piece was initially published at Insider Monkey .

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