The stock price of the real estate companies plummeted Tuesday as they announced layoffs.
There is a house for sale with a sign.
About 450 employees will be fired by Compass, 10% of its workforce, and about 470 employees will be laid off by Redfin, 8% of its workers, according to respective SEC Filings.
Glenn Kelman wrote in a post that the company doesn't have enough work for agents and staff.
17% below expectations.”A company spokesman told CNBC that the layoffs were due to signs of slowing economic growth.
The stock fell to an all-time low of $8.15 in mid afternoon trading, a 91.6% drop from the stock's record closing high of $96.59.
The company's shares are down 54.6% year to date and 78.5% from their peak.
The layoffs are a sign that the housing market is getting worse. According to data released by the government last month, adjusted new single family- home sales have fallen for four straight months, with the average 30-year mortgage rate at 5.2%, up from last August's low of 2.8% Survey data released last week by the Mortgage Bankers Association shows that mortgage demand has fallen to the lowest level in 22 years.
Here's what to expect from prices this year as the housing market boom is over.
There is a reason why prices will still rise.
Worst could be yet to come as pending home sales plunge to lowest level in nearly a decade.
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