ReMax CEO on the 2023 housing market, plus my thoughts
Boston Condos for Sale and Apartments for Rent
ReMax CEO on the 2023 housing market, plus my thoughts
RE/MAX Holdings will lay-off 7 percent of staff, according to a Securities and Exchange Commission filing reported by Inman. Based on the 594 employees reported in its most recent recent annual filing, the outlet estimated that more than 40 jobs will be eliminated.
The layoffs are expected to be completed by the end of September 2023, according to the SEC documents. It will result in between $2.75 million and $3.25 million for one-time termination benefits pre-tax.
In addressing the layoffs, a spokesperson for the company cited “current economic headwinds in the real estate and mortgage sectors.”
RE/MAX’s revenue fell 10.6 percent year-over-year in the second quarter, totaling $82.4 million. Net income, which was slightly on the negative side in the first quarter, jumped into the positive column by $2 million.
As the housing market has turned upside down in the past 18 months, many residential brokerages resorted to layoffs to keep themselves afloat. The wave of layoffs has largely trickled down to the occasional splash, however, as brokerages have hunkered down into a new normal.
My thoughts: I think we will see more layoffs and more agent leaving the industry before the end of 2023
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The following three paragraphs are from CEO of ReMax:
“I’m optimistic that 2023’s spring selling season will be a bright spot as levels of inflation get more under control.
There will still be extreme demand as new construction just can’t get out of the ground fast enough, and the Millennial home buyers, who make up a huge demographic, are primed to make their move.
According to a recent survey conducted by RE/MAX in partnership with SWNS Media Group, 84% of Gen Z, 79% of Millennials and 61% of survey respondents 77 or older plan to buy a house or condo in the next few years. In my opinion, 2023 will be a better year for housing than many people think, especially because we’ll no longer have year-over-year comparisons to 2021 – an historic outlier that made 2022 seem less than what it really was.”
My thoughts specifically on the Massachusetts housing market
I agree with ReMax I think 2023 will be better for housing than most “housing experts” think. Rising interests is the wild card in making any predictions. If interest rates hover around 5% or less, we should be in good shape. However, if interest rates are 6% or higher that could have a big impact on first-time Boston condo buyers.
On the other hand, people are getting married, divorced, moving to care for aging family members, relocating for career opportunities and so on, every single day. And for those people, it’s less about the interest rate or mortgage rates that week and more about their present situation and whether they can afford a house that fits their needs.
