Real estate firms Compass and Redfin have announced workforce cuts of 10% and 8%, respectively. CNBC said home sales have declined for “several straight months,” and mortgage demand has “fallen to its lowest level in over two decades.”
Compass, whose stock has slid from an all-time high of $20 to less than $4, pointed to “clear signals of slowing economic growth.” Meanwhile, Redfin CEO Glen Kelman said housing demand in May was 17% below expectations. His company’s stock price is now less than $8, compared to an all-time high of $96.
U.S. and European real estate markets are experiencing a downward shift in prices, according to real estate company Hines, which manages $90 billion in assets in 27 countries. Company spokesman David Steinbach told Bloomberg that he believes housing is “in for a rough few months.”
For a long time, the housing market was defined by bidding wars as buyers competed to pay higher prices for available homes. Such expressions of optimism and the willingness of investors to take greater risks are manifestations of positively trending social mood. To learn more about mood’s influence on social attitudes, read “The Wave Principle Delineates Phases of Social Caution and Ebullience.”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.