Recent headlines have been filled with news of layoffs, but look closer. The companies where layoffs are occurring are wholly unrepresentative of the real estate industry and don't represent a major trend.
Inman performed an analysis on the industry and published it today. Here's a summary of their findings and our view at My State MLS.
Here was the headline in The Street’s report on the Compass and Redfin layoffs last week: “Real Estate Companies are Laying Off Staff Right and Left.”
Counterpoint: No, they’re not.
Here was Newsweek’s: “What Real Estate Layoffs Tell Us About the Housing Market.”
And here was the headline from my friends at Inman: “Do Layoffs at Compass and Redfin Signal a Looming Real Estate Purge?”
Here’s the reality. The companies that laid people off are either investor-driven companies that are losing money and share price, startups with unproven business models, or refi-dependent mortgage and title companies. They all attract a vast amount of attention from the cognoscenti, but they are wholly unrepresentative of the industry as a whole.