For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[PaPaG]

JP Morgan Chase just announced a layoff of at least 1000 people and more to come due to the drastic drop in both housing purchases credited to CRAZY HOUSING MARKET slowing correcting and the doubling of interest rates..Redfin, Realtor.com did the same...YOU'VE seen Nothing YET.......if you planned on selling I hope you got it done or soon...if not expect some changes very soon. On the other hand, if you are a potential cash buyer TONS of great opportunities around the corner and from what I am guessing another 2 years of downturn and great prices to start very soon....

 

[CLdrinker]

And we are off...

 

[Xring01]

And we are off...

You fucker… you beat me to it…

When do the toys go on sale?

 

[buck35]

JP Morgan Chase just announced a layoff of at least 1000 people and more to come due to the drastic drop in both housing purchases credited to CRAZY HOUSING MARKET slowing correcting and the doubling of interest rates..Redfin, Realtor.com did the same...YOU'VE seen Nothing YET.......if you planned on selling I hope you got it done or soon...if not expect some changes very soon. On the other hand, if you are a potential cash buyer TONS of great opportunities around the corner and from what I am guessing another 2 years of downturn and great prices to start very soon....

Glad I'm neither a buyer nor seller. It's fixen to get ugly real soon , I'd guess. Sorry OSB...

 

[HALLETT BOY]

You fucker… you beat me to it…

When do the toys go on sale?

They already are on many sites

 

[Gonefishin5555]

"More than 1,000 employees will be affected and about half of them will be moved to different divisions within the bank, according to Bloomberg News, which first reported the layoffs."

So 500 net jobs lost its like .001 of their workforce. Anyone worth a shit is getting reassigned. Not sure this is even news.

 

[angiebaby]

I'm not gonna mention any names but some folks are about to have a comeundun about another doom and gloom RE post.

 

[PaPaG]

"More than 1,000 employees will be affected and about half of them will be moved to different divisions within the bank, according to Bloomberg News, which first reported the layoffs."

So 500 net jobs lost its like .001 of their workforce. Anyone worth a shit is getting reassigned. Not sure this is even news.

Redfin laid off 8% of its workforce, Compass 10%, THOSANDS MORE TO COME.

As inflation hit 8.6% in May and mortgage rates skyrocketed past 6%, as of mid-June, real estate brokerages and services are tightening their belts.​

17 and Counting​

A whole slew of real estate brokerages and services has recently announced their intentions to reduce their staffs and workers. The combined effects of the lightning fast runup in mortgage rates, global economic uncertainty and stock market volatility have prompted industry experts to “revise,” some might say downgrade, their forecasts for 2022 and 2023 home sales and mortgage originations.

Thus far, most of the announced layoffs have hit companies which provide mortgages, title and closing, and real estate tech services. But “most” is not all.

On June 14, two big-name real estate brokerages, Compass and Redfin, announced they were cutting sizeable portions of their respective workforces. Likewise, any expansion plans these real estate firms have had in any part of their respective operations have been put “on hold for the time being.”

Below are the companies who have already announced downsizing plans as of June 14.

Compass​

CEO Robert Reffkin announced in mid-June that Compass was laying off 10% of its workforce, about 450 employees. Supposedly, full-time staffers, not agents, are to bear the brunt of these layoffs.

Redfin​

Due to a drop in demand of 17%, CEO Glenn Kelman announced a shearing of 8% or nearly 500 people including agents, engineers, recruiters, trainers and additional support staff on June 14. Likewise, Redfin’s mortgage business, Bay Equity Home Loans, also delivered pink slips to 121 existing workers in sales support, capital markets and operations.

REX Real Estate​

REX had already implemented two rounds of layoffs during 2021. In May of 2022, this discount brokerage closed two offices in Texas. REX cofounder and COO Lynley Sides told RealTrends the firm was pivoting to brokering deals in California and Florida for institutional investors.

Rocket Companies​

In lieu of layoffs, the country’s largest mortgage lender has made buyout offers to some 2,000 workers. If accepted, the buyouts are expected to save the company about $180M/year, according to a Q1 earnings call.

Side​

Side notified 10% of its employees that they were out of a job on June 1.

Tomo​

This mortgage fintech outfit cut its workforce by nearly 33% on May 31. Founded by former Zillow executives to focus exclusively on purchase loans, CEO Greg Schwartz said the company was putting any expansion efforts to additional markets on hold.

Wells Fargo​

With revenue from home lending down -33% y/y to $1.49B, executives had already laid off an “unspecified” number of workers in its mortgage division in April.

Pennymac​

This second biggest mortgage lender after #1 Rocket laid off 236 workers from six locations in California during May.

Mr. Cooper​

At the end of 2021, this mortgage company had 8,200 employees. The company announced 250 layoffs during Q1 2022 and another 420 layoffs during Q2, a decrease of at least -8%.

LoanDepot​

With a reported Q1 2022 loss of $91.3M, CFO Patrick Flanagan cautioned in March 2022 that “headcount reductions” are one facet of “aggressively” managing costs with the intention of returning to profitability by the end of 2022.

Knock​

Power Buyer Knock announced layoffs of 115 employees, approximately 46% of its workforce, in March 2022.

Keller Mortgage​

Keller Williams’ lending arm Keller Mortgage laid off 150 recruits in October and laid off additional workers, unspecified, at the end of May. Despite these layoffs, the company continues to advertise for remote loan officers around the US.

Homie​

This flat-fee brokerage firm laid off 119 employees, approximately one-third of its workforce, in February. The company cited limited housing inventory as the reason for reducing its numbers.

Doma​

This digital title, escrow and closing provider announced that it would reduce its workforce by approximately 15% or 310 employees in May.

Guaranteed Rate​

Known to many agents for its joint ventures with Realogy Holdings Corp, @properties and Compass, this company laid off 348 employees and closed its third-party wholesale channel, Stearns Wholesale Lending, in January after acquiring Stearns Holdings LLC in January 2021.

Better​

Better Holdco Inc. founder and CEO Vishal Garg laid off 900 employees in December 2021 via a Zoom call. In March 2022, Better Real Estate LLC, Better’s real estate brokerage subsidiary, laid off another 3,000 workers.

Blend​

Blend Labs Inc. announced in April that it was laying off 200 employees, about 10% of its workforce.

That’s it for now, everyone.

 

[Wheeler]

I'm not gonna mention any names but some folks are about to have a comeundun about another doom and gloom RE post.

I've ordered cases of Monavie by the truck load! I'm stocking it deep and selling it cheep!

 

[PaPaG]

The naysayers will say NAY forever as they always have. They remind me of Biden and his Administration...Nothing to see here, move on nothing to see here lol, Numbers DO NOT LIE.....

 

[JM21]

Biden will still say he created new jobs.

 

[Pivot]

My house that doubled, so 100% up will drop 30% sweet im all in

 

[was thatguy]

I'm not gonna mention any names but some folks are about to have a comeundun about another doom and gloom RE post.

 

[Tom Slick]

Damn, it was only a week ago that I was more less put in my place right here on RDP that everything was fine, the real estate market was solid, unemployment was low and we would see nothing like 2008…haha! Shits hitting the fan folks and I ain’t happy about, nor looking forward to it. But you naysayers better wake up quick!

 

[Pivot]

I dont think anyone is a naysayer. I do think that after 2008, pandemic, biden, on and on we know theres a light at the end. Times are great bad great bad...at the end of the day life is short and THAT is what we realize now

 

[Roosky01]

The picture fee reduction for Kamala should have been the indicator that shit is about to get real…

 

[Pivot]

Do they do a full body search before the pic? Shit they must. Some crazy mofos out there

 

[Music to my Ears]

Glad my house sale closed 10 days ago!

 

[Done-it-again]

So a 5-10k reduction in the mortgage industry is going to “kill” housing ? Where they probably had too many people to begin with. IDK.

Once we start losing blue collar jobs then I start to worry.

 

[ToMorrow44]

Glad my house sale closed 10 days ago!

Same here! Just closed last Friday and now I’m renting. I definitely felt the slow down when I listed. I still got a full price offer in the first 2 days but nothing like the feeding frenzy, multiple offers over asking like in 2021.

 

[Javajoe]

Those companies could use some trimming. Everybody and their brother got into real estate. Bout time for a correction. Too much fat. I’m thinking a 20% correction but that’s it. Took 3 years for the 2008 crash to bottom. Gunna be a slow haul. Not overnight. Totally different deal

 

[Tom Slick]

So a 5-10k reduction in the mortgage industry is going to “kill” housing ? Where they probably had too many people to begin with. IDK.

Once we start losing blue collar jobs then I start to worry.

If you consider construction jobs blue collar, it’s coming sooner than you think. Freakin horrible what’s happening.

 

[hallett21]

Why would I care about 1,000 mortgage jobs being cut after one of the largest Refi booms in history?

So you’re saying that these companies are going back to 2017-2019 volume?

Lol I think there will be a lot of disappointed people left waiting.

 

[hallett21]

If you consider construction jobs blue collar, it’s coming sooner than you think. Freakin horrible what’s happening.

What location are you referring too?

 

[Cdog]

Opportunity on the horizon boys. Both in the financial markets & real estate.

Prepare the deck!!

 

[LargeOrangeFont]

Those companies could use some trimming. Everybody and their brother got into real estate. Bout time for a correction. Too much fat. I’m thinking a 20% correction but that’s it. Took 3 years for the 2008 crash to bottom. Gunna be a slow haul. Not overnight. Totally different deal

You mean we have to endure bi-daily “The sky is falling” RE threads for 3 more years?

 

[westair]

Damn, it was only a week ago that I was more less put in my place right here on RDP that everything was fine, the real estate market was solid, unemployment was low and we would see nothing like 2008…haha! Shits hitting the fan folks and I ain’t happy about, nor looking forward to it. But you naysayers better wake up quick!

Everybody I know is busier than ever including myself ... I couldn't take on any more work! ... you might be reading too much on these forums

 

[TCHB]

If you are happy with your home it does not matter. The kids will go school and play soccer or other sports. You will go to work and one day retire. The more important issue is how to save and invest for the later years. If you are in a area you do not like that is a different story.

 

[*BN*]

Inventory will slowly get smaller and smaller again anybody that bought a house with a loan in the last three years or so is crazy to sell it and get out from underneath the free money that they have (low rate)

I can only see the people that are selling are the people that are worried about job security or overextended in the first place

Brian

 

[LargeOrangeFont]

Opportunity on the horizon boys. Both in the financial markets & real estate.

Prepare the deck!!

We will see what doom and gloomers will put their money where their mouth is ..or wait another 10 years, 18 months from financial ruin at a time.

 

[Tom Slick]

What location are you referring too?

Over inflated Idaho for one.

 

[Jefftowz]

Remember, you marry your house and date the mortgage rate…. And rent is 100% interest. Don’t panic….

 

[Tom Slick]

Everybody I know is busier than ever including myself ... I couldn't take on any more work! ... you might be reading too much on these forums

Wish I could say the same, but I’m down over 30% YTD and 50% this month compared to last.

Unfortunately I don’t sell anything people need, just things people want. When gas prices spike, my sales tank.

 

[LargeOrangeFont]

Inventory will slowly get smaller and smaller again anybody that bought a house with a loan in the last three years or so is crazy to sell it and get out from underneath the free money that they have (low rate)

I can only see the people that are selling are the people that are worried about job security or overextended in the first place

Brian

Wrong. Everyone is leverered to the hilt. All will walk away from tens or hundreds of thousands in equity and houses will be worth 0$ but won’t be able to be sold.

 

[hallett21]

Over inflated Idaho for one.

For me in Southern Ca I am having a hard time keeping up.

 

[4Waters]

Damn, it was only a week ago that I was more less put in my place right here on RDP that everything was fine, the real estate market was solid, unemployment was low and we would see nothing like 2008…haha! Shits hitting the fan folks and I ain’t happy about, nor looking forward to it. But you naysayers better wake up quick!

EVERYTHING IS FINE!!!!!!!!

 

[530RL]

Hope some of those laid off are the top producers who know how to improvise, adapt and deliver results. If so we have tons of openings for them as well as the other ten million openings across the nation.

 

[LargeOrangeFont]

Redfin laid off 8% of its workforce, Compass 10%, THOSANDS MORE TO COME.

As inflation hit 8.6% in May and mortgage rates skyrocketed past 6%, as of mid-June, real estate brokerages and services are tightening their belts.​

17 and Counting​

A whole slew of real estate brokerages and services has recently announced their intentions to reduce their staffs and workers. The combined effects of the lightning fast runup in mortgage rates, global economic uncertainty and stock market volatility have prompted industry experts to “revise,” some might say downgrade, their forecasts for 2022 and 2023 home sales and mortgage originations.

Thus far, most of the announced layoffs have hit companies which provide mortgages, title and closing, and real estate tech services. But “most” is not all.

On June 14, two big-name real estate brokerages, Compass and Redfin, announced they were cutting sizeable portions of their respective workforces. Likewise, any expansion plans these real estate firms have had in any part of their respective operations have been put “on hold for the time being.”

Below are the companies who have already announced downsizing plans as of June 14.

Compass​

CEO Robert Reffkin announced in mid-June that Compass was laying off 10% of its workforce, about 450 employees. Supposedly, full-time staffers, not agents, are to bear the brunt of these layoffs.

Redfin​

Due to a drop in demand of 17%, CEO Glenn Kelman announced a shearing of 8% or nearly 500 people including agents, engineers, recruiters, trainers and additional support staff on June 14. Likewise, Redfin’s mortgage business, Bay Equity Home Loans, also delivered pink slips to 121 existing workers in sales support, capital markets and operations.

REX Real Estate​

REX had already implemented two rounds of layoffs during 2021. In May of 2022, this discount brokerage closed two offices in Texas. REX cofounder and COO Lynley Sides told RealTrends the firm was pivoting to brokering deals in California and Florida for institutional investors.

Rocket Companies​

In lieu of layoffs, the country’s largest mortgage lender has made buyout offers to some 2,000 workers. If accepted, the buyouts are expected to save the company about $180M/year, according to a Q1 earnings call.

Side​

Side notified 10% of its employees that they were out of a job on June 1.

Tomo​

This mortgage fintech outfit cut its workforce by nearly 33% on May 31. Founded by former Zillow executives to focus exclusively on purchase loans, CEO Greg Schwartz said the company was putting any expansion efforts to additional markets on hold.

Wells Fargo​

With revenue from home lending down -33% y/y to $1.49B, executives had already laid off an “unspecified” number of workers in its mortgage division in April.

Pennymac​

This second biggest mortgage lender after #1 Rocket laid off 236 workers from six locations in California during May.

Mr. Cooper​

At the end of 2021, this mortgage company had 8,200 employees. The company announced 250 layoffs during Q1 2022 and another 420 layoffs during Q2, a decrease of at least -8%.

LoanDepot​

With a reported Q1 2022 loss of $91.3M, CFO Patrick Flanagan cautioned in March 2022 that “headcount reductions” are one facet of “aggressively” managing costs with the intention of returning to profitability by the end of 2022.

Knock​

Power Buyer Knock announced layoffs of 115 employees, approximately 46% of its workforce, in March 2022.

Keller Mortgage​

Keller Williams’ lending arm Keller Mortgage laid off 150 recruits in October and laid off additional workers, unspecified, at the end of May. Despite these layoffs, the company continues to advertise for remote loan officers around the US.

Homie​

This flat-fee brokerage firm laid off 119 employees, approximately one-third of its workforce, in February. The company cited limited housing inventory as the reason for reducing its numbers.

Doma​

This digital title, escrow and closing provider announced that it would reduce its workforce by approximately 15% or 310 employees in May.

Guaranteed Rate​

Known to many agents for its joint ventures with Realogy Holdings Corp, @properties and Compass, this company laid off 348 employees and closed its third-party wholesale channel, Stearns Wholesale Lending, in January after acquiring Stearns Holdings LLC in January 2021.

Better​

Better Holdco Inc. founder and CEO Vishal Garg laid off 900 employees in December 2021 via a Zoom call. In March 2022, Better Real Estate LLC, Better’s real estate brokerage subsidiary, laid off another 3,000 workers.

Blend​

Blend Labs Inc. announced in April that it was laying off 200 employees, about 10% of its workforce.

That’s it for now, everyone.

You realize that is nothing, relative to the industry right? Ameriquest laid off 17k people in a day in 2006. Countrywide did the same, and even more people.

It is obvious the market is changing, we have no idea what it will change into.

 

[Done-it-again]

If you consider construction jobs blue collar, it’s coming sooner than you think. Freakin horrible what’s happening.

I would say that would be more concerning when it happens.

I can care less about the mortgage industry. Especially the ones jump ship to that industry when things are hot. They better have saved their money, cause they are not going to be the baller they have been playing the last 5 yrs.

The og ones know the ups and downs and will do ok like they had for many years

 

[hallett21]

We are fucked

 

[MagicMan]

When the market crashed 08 i was shopping for a home in Chino thinking id have my pick of the litter. Not the case, I was competing against several cash buyers. It got to the point where I wouldn’t even look at homes anymore I submitted offers on everything in the market. It took until 2010 to finally have an offer accepted. Im talking full price offers. Back then the market crashed because over 36% of mortgages were stated income adjustable rate mortgages, people with shitty credit. Today that is not the case, only 4% are ARMs, everyone I know purchased and refinanced below a 3% 30yr fixed. No one took out equity. Everyone has been living within their means. I think 2008 taught us all the risk of over leveraging. Today we have a huge supply shortage, tons of qualified buyers. Unemployment rate is under 4% vs 10% in 08. Home builders building too slow and rents are way up. With the market softening people will not look to upgrade leaving their 3% fixed rate and get in to a 6% loan. This will further the home supply constraints. A correction will happen a blood bath not so much. Real estate job market has been over saturated, there are literally more agents than there are homes. There are plenty of vacant jobs to fill. What happens when the supply chains ease up. The war in Ukraine ends, gas prices come back down, and inflation drops. Will we see a boom reversal, all possibilities, The average bear market lasts less than a year no one can time the bottom perfectly.

 

[Singleton]

This is just trimming the headcount in an area that had no FTE limit for the last few years.
Shit will hit the fan, when retail and dining start RIF’s.

 

[*BN*]

Wrong. Everyone is leverered to the hilt. All will able walk away from tens or hundreds of thousands in equity and houses will be worth 0$ but won’t be able to be sold.

“wrong” Who the fuck are you some sort of a God?


“Won’t be able to be sold” that’s exactly what I’m saying they’re crazy to sell it they have the best loan in the history of all time

Equity doesn’t mean shit if you’re not planning on selling it.

If somebody’s in at a 3 to 4% loan and 20% down regardless of what price they sell it they cannot qualify for the new house the interest rate is now 6+

They can dump the price of the house to get rid of it but now there’s really no way that person will be afford to replace it

Now as you stated (leveraged) if there are first time homebuyers that got in at 10% down as I stated there overextended should not have had it in the first place.


Brian

 

[hallett21]

We are fucked

Edit: I wonder if they will be able to find $15-25 an hour jobs…….

 

[LargeOrangeFont]

“Won’t be able to be sold” that’s exactly what I’m saying they’re crazy to sell it they have the best loan in the history of all time

Equity doesn’t mean shit if you’re not planning on selling it.

If somebody’s in at a 3 to 4% loan and 20% down regardless of what price they sell it they cannot qualify for the new house the interest rate is now 6+

They can dump the price of the house to get rid of it but now there’s really no way that person will be afford to replace it

Now as you stated (leveraged) if there are first time homebuyers that got in at 10% down as I stated there overextended should not have had it in the first place.


Brian

The post was in jest from the sky is falling people. I agree with you on all counts.

All these people need somewhere to live. They won’t find a cheaper place to live than the current house bought pre 2019 at a low rate and with equity, they aren’t waking away, they are selling.

 

[Your ad here]

Does this mean 7.3 prices will tank as well?

 

[LargeOrangeFont]

When the market crashed 08 i was shopping for a home in Chino thinking id have my pick of the litter. Not the case, I was competing against several cash buyers. It got to the point where I wouldn’t even look at homes anymore I submitted offers on everything in the market. It took until 2010 to finally have an offer accepted. Im talking full price offers. Back then the market crashed because over 36% of mortgages were stated income adjustable rate mortgages, people with shitty credit. Today that is not the case, only 4% are ARMs, everyone I know purchased and refinanced below a 3% 30yr fixed. No one took out equity. Everyone has been living within their means. I think 2008 taught us all the risk of over leveraging. Today we have a huge supply shortage, tons of qualified buyers. Unemployment rate is under 4% vs 10% in 08. Home builders building too slow and rents are way up. With the market softening people will not look to upgrade leaving their 3% fixed rate and get in to a 6% loan. This will further the home supply constraints. A correction will happen a blood bath not so much. Real estate job market has been over saturated, there are literally more agents than there are homes. There are plenty of vacant jobs to fill. What happens when the supply chains ease up. The war in Ukraine ends, gas prices come back down, and inflation drops. Will we see a boom reversal, all possibilities, The average bear market lasts less than a year no one can time the bottom perfectly.

We did the same looked in 08 and it was a waste of time. Looked again in 09 at at least 100 properties and everything was destroyed and a short sale. Of over 100, 3 were conventional sales, we were able to get one for $10k over ask in late 2009.

 

[mash on it]

You realize that is nothing, relative to the industry right? Ameriquest laid off 17k people in a day in 2006. Countrywide did the same, and even more people.

It is obvious the market is changing, we have no idea what it will change into.

Jesus Ashley,
Yore right.

Until yore not.
Carry on...

Dan'l

 

[mash on it]

Does this mean 7.3 prices will tank as well?

Lol

Dan'l

 

[DWC]

You mean we have to endure bi-daily “The sky is falling” RE threads for 3 more years?

No shit.