Last year, Realogy and other brokerages were bracing for a housing slowdown. It never came.
On Thursday, the brokerage giant said transactions soared 44 percent during the first quarter of 2021, marking the third quarter of consecutive gains. The company reeled in $33 million in profits, compared to a staggering $462 million loss during the same period last year (which included a $447 million impairment charge).
During a Thursday earnings call, CEO Ryan Schneider said Realogy is gaining market share, even as the sector is firing on all cylinders. The National Association of Realtors recently reported 28 percent year-over-year growth in sales volume.
“We are absolutely benefiting from our luxury leadership position,” Schneider said. “Florida is such a powerful engine of housing at the moment, and that’s our third biggest geography.”
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He said New York City is also seeing a “big rebound.” So far in April, signed contracts are up 400 percent year-over-year, and they’re up 20 percent compared to the same period in 2019. “New York City is starting to come back,” he said.
Nationwide, the housing market has been on fire and Realogy reaped the rewards: It generated $1.5 billion in first-quarter revenue, up 32 percent year-over-year.
Nationwide, Realogy said April closed transactions were up 80 percent year-over-year and 50 percent since 2019.
Amid a competitive environment for agents, Realogy also grew its agent headcount by 3 percent.
Before the pandemic struck, Realogy enacted an aggressive cost-cutting strategy. The company
said it is looking to shave $80 million in costs in 2021.
Realogy’s stock closed at $15.22 per share on Wednesday ahead of the company’s earnings.
That’s up 27 percent from six months ago, and more than four times the stock price a year ago.