Inventory

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventory

Inventory

Our inventory is comprised of homes purchased by our RedfinNow operations. The subsequent sale of our home inventory constitutes the majority of our properties segment revenue. In the fourth quarter of 2022 we began to wind down our RedfinNow operations, and expect to complete the wind-down in 2023.

The components of inventory were as follows:

	March 31, 2023		December 31, 2022
Finished goods
Homes for sale	$	9,122	$	97,636
Work in progress
Homes not available for sale	—		2,467
Homes under improvement	1,563		14,170
Inventory	$	10,685	$	114,273

Inventory includes direct home purchase costs and any capitalized improvements, net of inventory reserves, which reflect the lower of cost or net realizable value write-downs applied on a specific home basis. As of March 31, 2023 and December 31, 2022, lower of cost or net realizable value write-downs were $941 and $8,404, respectively. These write-downs are included within the changes in inventory in net cash used in operating activities in our consolidated statements of cash flows.

The following table summarizes our inventory activities:

	Three Months Ended
	March 31, 2023		March 31, 2022
Number of homes purchased	—		398
Inventory value of homes purchased	$	—	$	197,549
Number of homes sold	191		617
Inventory value of homes sold	$	103,588	$	306,379