Motley Fool Money Redfin On The Attack
Aug 27, 2023
Glenn Kelman, the CEO of Redfin since 2005, shares insights on navigating the tough real estate landscape. He discusses how Redfin adapts to current market challenges, including strategies to capture the luxury home segment. The conversation also highlights innovative commission structures and the impact of rising mortgage rates on buyer sentiment. Kelman elaborates on recent acquisitions, emphasizing their role in enhancing Redfin's value. With a focus on ethical lending practices, the discussion reflects Redfin's commitment to customer service and market evolution.
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Personal Touch
- Glenn Kelman, CEO of Redfin, personally calls high-end clients.
- This reassures them of Redfin's commitment, especially since they're a newer luxury brand.
Market Differences
- The 2008 housing crisis saw many foreclosures and short sales, unlike the current market.
- The current market downturn is characterized by low sales volume, not price collapse.
Rate Sensitivity
- Low mortgage rates (under 5%) discourage homeowners from selling.
- Glenn Kelman predicts rates will stay above 7% for the rest of 2023, hindering sales volume recovery.