Realogy Narrows Q1 Net Loss Y-O-Y

MADISON, NJ—Realogy Holdings Corp., owner of the Coldwell Banker, Century 21 and Soheby’s International residential brokerage brands, posted a wider-than-expected loss for the first quarter on industry-wide declines in mortgage refinancing as well as a year-over-year slide in its own transaction volume. The Madison, NJ-based holding company, which operates 13,600 owned and franchised offices in 104 countries, posted a net loss of $46 million, or 32 cents per share; analysts polled by Thomson Reuters had predicted a loss averaging 19 cents per share. However, the net loss was down more than 33% Y-O-Y from $75 million in Q1 2013.

“We saw two opposing trends in the first quarter that caused an overall shift in Realogy’s mix of business resulting in a higher average sale price and reduced transaction sides,” says CEO Richard Smith. “Demand at the higher price points in markets served by our franchisees and company-owned brokerages was strong, while difficult credit standards and rapid home price appreciation, primarily caused by low inventory levels, constrained activity at the entry level of the housing market.” The average sale price rose 13% Y-O-Y, while volume eroded by 3%.