Redfin CEO predicts 'terrible consolidation’ in the real-estate sector, but says it will ultimately be good for the industry

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The real-estate sector is in crisis amid the housing downturn. Expect more pain to come before things start to normalize, one housing chief says.

“There’s going to be a terrible consolidation,” Glenn Kelman, CEO of real-estate brokerage Redfin RDFN, told MarketWatch in a recent episode of Barron’s Live.“There’s going to be a terrible consolidation,” Glenn Kelman, CEO of real-estate brokerage Redfin RDFN , told MarketWatch in a recent episode of Barron’s Live.During the pandemic years of 2020 and 2021, many Americans jumped into the real-estate industry, Kelman recounted, so many that “we had more real-estate agents than listings by 2021.

“I hope the industry is close to [becoming] right-sized and that things can get better from here,” Kelman said on Wednesday. “I don’t think that’s happened yet.” “Rents decreased in December in 90 of the nation’s largest 100 cities,’ the report stated, “with prices down by 3% month-over-month.”But that’s also limiting the number of homes that go on sale, Kelman noted. He said that some of that supply came from home sellers who are withdrawing their listings from the market, and renting them out instead.

When he recently visited a local office in Florida, Kelman said Redfin employees in areas affected by Hurricane Ian told him that investors were calling as the hurricane made landfall. “Even as the regular residents of Florida are calling us, almost in tears, because they’re standing on their second-floor balcony and they’re up to their knees and water …there’s another group of people coming from all over the world who see this as an investment opportunity,” he said.

At the start of 2023, the Canadian government enacted a ban on foreigners buying homes in Canada for two years. The law provides exceptions for purchases made by immigrants and permanent residents of Canada, CNN reported.“At one level, it’s just a massive self-inflicted wound to the economy,” he said. But on another level it’s “a real commitment to making housing more affordable for Canadians,” he added.

 

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The faster Redfin closes it’s doors the better, clerks doing real estate agents jobs with no customer service…

Redfin won’t survive as thier model is built on sub par agents

I already see IG realtors starting to expand their service offerings because of the slowdown. It's gonna be painful.

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