Compass CEO Warns Housing Market Is Splitting Apart as 42% of Homes See Price Cuts, Highest in Nearly a Decade: 'There's Not One Market'

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Compass, Inc. CEO Robert Reffkin said 42% of U.S. homes on the market saw a price cut in September, the highest share in nearly a decade.

Reffkin made the comments in an interview on CNBC's Squawk on the Street on Thursday, saying the housing market isn't one uniform market, while noting that it has been split by geography and price point.

There's not one market. There's different markets by geography, different markets by price point, Reffkin said.

Don't Miss:

He noted that sales of homes priced between $100,000 and $250,000 are down 10%, while sales of homes priced above $1 million are up 4%, reflecting a market increasingly divided by price point, since lower-end buyers are more sensitive to mortgage rates while wealthier buyers pay cash and benefit from a strong stock market.

He added that supply is up 4% nationally, and mortgage rates are expected to reach 7% by year-end, which he said would bring inventory back to pre-pandemic levels.

Reffkin said overall transactions were down 2% month-over-month and down 1% year-over-year. Accounting for price, prices are up 1.6% year-over-year, which he called impressive given mortgage rates are 50 basis points higher than a year ago.

Price cuts are most common in Colorado and Texas, particularly Austin, which saw an influx of buyers from California during the pandemic, some of whom have since moved back.

Trending: Think you're saving enough for your kids? You might be dangerously off — see why

Chicago and New York are seeing the fewest cuts due to low supply.

Mortgage rates have already moved close to that mark. The average 30-year fixed rate rose to 7.07% Thursday, its highest since May 2025, according to Mortgage News Daily. Freddie Mac's weekly survey separately put the 30-year rate at 6.76%.

The 30-year fixed-rate mortgage averaged 6.76% this week, said Sam Khater, Freddie Mac's chief economist. Aspiring buyers should remember shopping around for the best mortgage rate.

The rate pressure comes as the 10-year Treasury yield approaches 5%, with some strategists warning yields could climb toward 8% given the scale of national debt. Housing activity has also grown increasingly split by wealth, with luxury sales outpacing the broader market in dozens of major U.S. metro areas.

Photo courtesy: Shutterstock

Read Next:

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Entertainment franchises can become valuable long-term assets when they successfully expand across multiple platforms. Skybound Entertainment, the company behind The Walking Dead and Invincible, develops original intellectual property that spans comics, television, film, video games, merchandise, and licensing. With more than 250 IPs in its portfolio and a strategy focused on retaining franchise rights while scaling successful stories across media, Skybound offers investors exposure to the growing entertainment and creator economy through a private company rather than traditional public market investments.

Coffee is a daily staple for millions of consumers, but investors rarely get direct exposure to the brands and supply chains behind it. Green Coffee Company offers a way to participate in the growth of the coffee market through its exclusive U.S. and Canadian distribution rights for Colombian brand Juan Valdez. With the brand expanding across major retailers including Target, Walgreens and Kroger, and GCC reporting 26X revenue growth over four years, the company is positioning itself to bring a well-known Colombian coffee brand to more consumers across North America.

As artificial intelligence drives a surge in electricity demand, reliable power generation is becoming a critical part of the technology ecosystem. American PowerGen is developing natural gas-fired power plants in Texas, a fast-growing market fueled by AI data centers, manufacturing expansion, and population growth. By advancing projects through permitting, fuel supply, and grid interconnection, the company is positioning itself to help meet rising energy needs while offering investors exposure to the infrastructure supporting the next wave of AI and industrial growth.

As electricity demand rises alongside AI, data centers, and renewable energy, long-duration energy storage is becoming increasingly important. Qnetic is developing a kinetic energy storage system designed to provide long-lasting, chemical-free electricity storage, offering investors exposure to the infrastructure supporting a more resilient and reliable power grid.

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: https://finance.yahoo.com/real-estate/articles/compass-ceo-warns-housing-market-104604640.html