Compass, one of the country’s fastest-growing real estate brokerages, reported quarterly results this week for the first time since it became a public company. Sales and market share are up, but profit … not so much. Which was expected: It’s a spend-money-to-make-money time for Compass.
Big brokerages like Compass and Realogy have been on a tear to buy up their competitors, as well as those competitors’ agents, and expand their range of business. Would-be home buyers aren’t the only ones competing for more real estate in this hot housing market.
It’s a good time to be in the real estate services business. Consider the sheer number of homes being sold, said Rick Palacios Jr., director of research with John Burns Real Estate Consulting. For existing homes, “we’re forecasting 6.5 million this year, roughly 7 million next year,” he said.
And each of those transactions typically…