As Wall Street faced its third consecutive week of significant declines, a noteworthy article emerged from The Wall Street Journal regarding Berkshire Hathaway, the massive conglomerate led by Warren Buffett, valued at $1.1 trillion.

According to the report published on Thursday, Berkshire was allegedly engaged in “advanced” discussions to sell Home Services of America, America’s fourth-largest real estate agency, to the leading firm, Compass. However, this claim was rebutted the following day, with Home Services asserting there were “no discussions, negotiations, or agreements” taking place.

The intrigue surrounding this story stems from Buffett’s history; he rarely sells holdings unless faced with persistent issues, a sentiment he notably emphasized in his recent annual letter to shareholders.

Instances of Buffett divesting businesses are indeed scarce. For example, even when facing significant challenges, he has historically chosen to retain companies—such as the Dexter Shoe Company, acquired in 1993 and described by Buffett as a “financial disaster” warranting a place in the Guinness Book of World Records.

There have been rare occasions; in January 2020, Buffett sold BH Media, which owned 49 weekly and 30 daily publications, including the Omaha World-Herald and Buffalo News, titles he had owned for over 40 years.

A more relevant instance occurred in February 2019 with the sale of Applied Underwriters, which provided insurance to help business owners manage employee compensation claims. Berkshire had purchased this company in 2006, but it faced regulatory scrutiny across multiple states, leading to a $3 million fine from New York’s financial department for illegal practices.

This context makes the recent speculation about Home Services particularly engaging, as the company has also faced regulatory challenges. In April of the previous year, it agreed to a $250 million settlement for allegations of collusion with competitors and the National Association of Realtors (NAR) to inflate commissions for homeowners.

This ruling is poised to adversely impact profitability for companies like Home Services, as the structure of real estate commissions is changing. Traditionally, home sellers were responsible for compensating both their agent and the buyer’s agent, but the new ruling allows buyers to negotiate agent fees, igniting a competitive price shift among buyer’s agents.

Consequently, several agents have exited the industry, contributing to a decline in the number of real estate agents and brokers in the U.S., which fell to the lowest levels seen in 11 years, and even more are expected to leave this year.

This trend coincides with a reduction in home sales, as higher interest rates persist, with the average 30-year fixed mortgage rate currently exceeding 6.5%, more than double the rates during the pandemic years of 2020-21. Buffett himself has expressed concerns over the market’s challenges due to a scarcity of homes for sale and elevated property valuations.

Despite these bleak indicators, Compass, supported by Japanese investor Softbank and known for its criticism of the NAR, continues to thrive and acquire competitors.

Buffett’s recent actions, such as the divestiture of significant stakes in Bank of America and Citigroup, and his accumulation of a cash reserve totaling $325 billion, suggest a cautious outlook on the U.S. economy.

Therefore, even amidst last week’s denials, it would not be surprising to see a sale of Home Services materialize.

Ian King is a business presenter on Sky News.