MADISON, NJ—Realogy Holdings Corp., owner ofthe Coldwell Banker, Century 21 and Soheby's Internationalresidential brokerage brands, posted a wider-than-expected loss forthe first quarter on industry-wide declines in mortgage refinancingas well as a year-over-year slide in its own transaction volume.The Madison, NJ-based holding company, which operates 13,600 ownedand franchised offices in 104 countries, posted a net loss of $46million, or 32 cents per share; analysts polled by Thomson Reutershad predicted a loss averaging 19 cents per share. However, the netloss 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 anoverall shift in Realogy's mix of business resulting in a higheraverage sale price and reduced transaction sides,” says CEORichard Smith. “Demand at the higher price pointsin markets served by our franchisees and company-owned brokerageswas strong, while difficult credit standards and rapid home priceappreciation, primarily caused by low inventory levels,constrained activity at the entry level of the housing market.” Theaverage sale price rose 13% Y-O-Y, while volume eroded by 3%.

On a conference call with analysts Monday morning, Smith said2014 could be “a challenging year, especially if transaction volumegrowth continues to slow throughout the prime selling season.”Compounding the challenges of low inventory at the first-timehomebuyer and move-up buyer levels are “tough credit underwritingand the effects of a sluggish economy, which we believe has sloweddemand.”