Will Compass be able to keep attracting agents even as it hits choppy waters? The answer appears to be yes – at least so far. 

The major national brokerage saw its principal-agent headcount grow by 2 percent during the third quarter, according to the company’s earnings presentation yesterday. The growth came despite the end of the company’s generous agent recruitment incentives, like stock and cash, during the second quarter. 

And, despite Compass’ continued difficulties as the real estate market sours, it still reported having 15 percent more principal agents in the third quarter compared to the third quarter of 2021. 

“We have built an incredibly strong agent network, a highly regarded brand and the most advanced technology platform that help us recruit agents and make them more productive,” CEO Robert Reffkin said during the company’s earnings call. 

Agent retention showed in the brokerage’s market share, COO Greg Hart said during the call. 

“We processed close to 55,000 transactions in the third quarter, a decline of 12 percent from a year ago, which compares favorably to the 21 percent decline in transactions for the entire residential real estate market as reported by [the National Association of Realtors]. We believe the Compass advantage is even more compelling in difficult market conditions,” he said. 

Still, with a tough 2023 ahead of the entire real estate market, Refkin said the company is planning more layoffs that would let it survive a 25 percent drop in real estate sales nation-wide.