Redfin CEO Glenn Kelman shared his insights during the company’s second-quarter 2024 earnings call, expressing optimism that business will improve as the housing market picks up pace following a decrease in mortgage rates.
However, Kelman humorously pondered the alternative if rates do not decrease, jokingly suggesting that the company’s Plan B might involve unconventional measures like drinking urine or competitors’ blood.
Despite the lighthearted remarks, Redfin, like many other brokerages, is facing challenges due to a slowdown in transactions and a stagnant market. Concerns linger as the market has yet to respond to the recent rate decline.
Reflecting on the unusual market behavior, Kelman remarked, “It’s been Twilight Zone, man. I can’t remember a time when rates came down this far, this fast, and the market has been so muted in its response.”
While Redfin’s Q2 2024 financial results showed a mixed performance with increased revenue and gross profit, the company reported a net loss. Kelman also discussed the impact of the NAR’s settlement on buyer agent commissions, noting changes in Redfin agent commissions in markets that adopted new practices ahead of the deadline.
Redfin’s recruitment of new agents has gained momentum in markets where the Redfin Next payment plan is in place, offering agents a more traditional commission split along with salary and benefits. The program has expanded to new markets, attracting top-producing agents and positioning the brokerage for the fall homebuying season.
With a touch of humor, Kelman reassured that Redfin will navigate the challenges ahead, stating, “We’ll drink our urine before the blood. Actually, I wish I just hadn’t said that. I’m a lover, not a fighter.”