Compass Inc. shares jumped as much as 21% in after-hours trading on Tuesday after the real estate brokerage forecast second-quarter revenue that exceeded Wall Street expectations. The strong outlook signals robust demand for residential real estate services even as the housing market navigates higher mortgage rates and limited inventory.

The revenue forecast beat marks a turning point for Compass, which has faced pressure from a slowing housing market and intense competition from traditional brokerages. Investors rewarded the optimistic guidance, sending the stock soaring during after-hours trading when volume is typically lighter and moves can be more pronounced.

Real estate brokerages like Compass depend heavily on transaction volumes and commission rates, both of which have been under pressure as buyers struggle with affordability. The better-than-expected forecast suggests the company is gaining market share or successfully managing costs despite industry-wide headwinds.

The stock surge reflects investor confidence that Compass can navigate current market challenges and maintain profitability. The after-hours rally indicates the company's forward-looking guidance resonated with Wall Street, which has been cautious about residential real estate stocks amid economic uncertainty.