In reporting his company’s third quarter earnings, Compass Inc. CEO Robert Reffkin didn’t sugarcoat the state of the real estate industry, calling it “generationally bad” as he reported a 14% loss in revenue from last year.
Compass CEO stated: “The incredible speed of the decline has been historic. Transactions have fallen significantly as soaring mortgage rates, high home prices, lack of inventory, stock market declines and high levels of uncertainty are keeping many buyers on the sidelines.”
The largest residential real estate brokerage in the US, Compass reported total revenues of $1.49 billion for the third quarter – a 14% drop from the comparable period last year – driven principally by lower market volumes.
Moreover, the company incurred $29 million in restructuring charges, of which $25 million was for severance pay originating from past layoffs. The firm posted a net loss of $154 million compared to a net loss of $100 million in the third quarter of 2021 as lower revenues and restructuring costs more than offset reduction in commission and operating expenses.
The company is braced for further bad times ahead, Reffkin said: “The past 12 months have been tough and the next 18 months fear that they can be tougher,” he told investors and financial journalists.
Source: Compass troubles continue
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