Redfin CEO makes a bold declaration, stating he will take an extreme measure if mortgage rates do not decrease, underscoring his strong confidence in the housing market’s future
Redfin CEO Glenn Kelman responded, “Plan B is to drink our urine or our competitors’ blood, stay in the foxhole,” when asked about the company’s “Plan B” if mortgage rates do not fall.
This was not an informal, off-the-record gathering. It was during Redfin’s second-quarter earnings call earlier this week, a call in which executives typically refrain from offering blandly optimistic platitudes. This call is generally transcribed on investor relations websites.
Wall Street analysts were preoccupied with the prospects for the broader housing market despite the real estate website’s earnings exceeding expectations.
Kelman, at one point, likened the current market to “The Twilight Zone,” stating, “I cannot recall a time when [mortgage] rates decreased this rapidly and this significantly, and the market has been so subdued in responding.” “And we must have faith that it will increase.”
In other words, he is optimistic about the market’s potential for improvement but is not depending on it.
After the pledge above to consume various bodily fluids, Kelman continued, “The most recent earnings call concluded with me reciting a line from the Who song “Won’t Get Fooled Again.” In this line, Kelman stated they were not relying on low rates when others believed they might decrease.
We are prepared to acquire market share if it expands and equally prepared to gain market share if it declines. However, we will not relinquish our stance.
Finally, Kelman conveyed a slight sense of remorse regarding his choice of words just before the conclusion of the call: “We will consume our urine before our blood.” In reality, I regret uttering that statement. I am a lover, not a combatant.