Housing market layoffs

2022 - 6 - 15

Compass, Redfin both announce layoffs amid slowing housing ... (SFGate)

Two major real estate firms announced layoffs this week, both of which have a large presence in the Bay Area. Compass reduced its staff by about 450 people ...

Redfin CEO Glenn Kelman wrote in a statement, “With May demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leaves us with less money for headquarters projects.” Still, the report steeled against any drastic conclusions, writing: "As an analogy, if traffic is going 100 miles per hour and drops to 65, it feels a lot slower, but can not reasonably be described as slow.” Compass reduced its staff by about 450 people across the country, though the company wouldn’t confirm to SFGATE how many were affected in the Bay Area. Those laid off were full-time Compass employees, not real estate agents.

Is real estate following crypto and stocks to a bloodbath following ... (Fortune)

Signs are pointing toward a slowdown in demand that could put an end to booming house prices—but experts are divided on whether we're in a housing bubble ...

Instead, various markets will respond at a measured pace.” In a tweet on Wednesday, the world’s richest man Elon Musk suggested that he believed the sector was headed the same way as stocks and crypto, both of which have seen massive sell-offs in recent weeks. Meanwhile, UBS analysts said in a note this month that the “golden child” of real-estate was losing its shine as global listings fared poorly in May. Meanwhile, data from the U.S. Mortgage Bankers Association (MBA) revealed last week that mortgage applications in America for the week ending June 3 were down 6.5% from a week earlier. According to the latest data from the U.S. Census Bureau, new home sales fell to a 12-month low in April, with the number of new privately-owned houses sold seeing a 27% year-on-year decline. A report from Redfin in May — 12 months after the company said median U.S. home sale prices rose by a record 26% year-on-year — suggested that American demand for real-estate may be waning, with one in five sellers dropping their list price as homebuying competition plateaued.

Real estate job cuts: Redfin and Compass announce layoffs - CNN (CNN)

Mortgage rates are climbing, home sales are dropping and some of the nation's largest real estate companies are announcing layoffs.

At Compass, 450 of its 4,500 employees will be cut, "due to the clear signals of slowing economic growth," according to a spokesperson's statement. This is the second time Redfin has announced layoffs in the past three years. "We owe it to everyone who has invested your time or treasure in this company to become profitable, and then very profitable."

'I'll Spend The Rest of My Life Wondering How I Could've Avoided ... (Entrepreneur)

Housing market layoffs are happening across the real estate industry with Compass and Redfin making major cuts. See details about the layoffs, here.

In his closing remarks, Kelman stated: "I'll spend the rest of my life wondering how I could've avoided these layoffs. As mortgage interest rates rise and home sales drop, Redfin and Compass are cutting their workforces. Compass, so far, has been less forthcoming about its layoffs.

Redfin layoffs portend grim future for housing market (bigcountrynewsconnection.com)

Redfin CEO Glenn Kelman sent an email to all Redfin employees about the layoffs on June 14. He said the decreasing demand for homes has forced the company to ...

“But mortgage rates increased faster than at any point in history.” “With May demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leaves us with less money for headquarters projects.” Redfin CEO Glenn Kelman sent an email to all Redfin employees about the layoffs on June 14.

Cooling housing market prompts layoffs at Redfin (Yakima Herald-Republic)

Redfin, the Seattle-based real estate brokerage, says it will lay off 8% of its employees as the housing market cools off. The Seattle Times reports CEO ...

The company lost about $110 million last year, up from $18.5 million the year before, according to SEC filings. Redfin’s share price has dropped from about $39 at the start of the year to $8.55 this week. The cuts at the online listing site and real estate brokerage could affect more than 450 people.

'We could be facing years, not months, of fewer home sales,' says ... (MarketWatch)

Redfin and Compass are laying off employees, citing weakness in the housing sector as a driver for the cuts. Redfin, along with Compass, announced layoffs ...

“But it is.” “We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive.” Compass said it was cutting 10% of its workforce, around 450 jobs. One CEO of a real estate company said that job cuts were necessary, given how bad things are about to get. “This is still the early stages of the housing rollover; homebuilders are not yet ready to admit that the sky is falling in,” he stated. “We expected a bigger hit, but this is not the floor,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note on Wednesday. “Mortgage demand is in free-fall, and the [National Association of Home Builders] index will drop much further over the summer.”