Realogy’s net revenue for the third quarter was $1.2 billion, an increase of 10 percent from third quarter of 2010, the company announced today, largely due to an increase in transaction volume at the company’s franchises, which include the Corcoran Group, Citi Habitats, Coldwell Banker and Sotheby’s International Realty.
“Despite difficult macro-economic issues, our third quarter produced 10 percent revenue growth before restructuring and other items,” said Richard Smith, Realogy’s president and CEO. “Given the macroeconomic headwinds facing the housing market, our operating performance has shown resilience. We believe we are substantially advantaged with our leaner, highly variable cost model, a capital structure that includes $2.1 billion of convertible debt and the continued support of our largest investors.”
Fourth-quarter home sale will increase, but at a slower pace than in the third quarter, Realogy CFO Anthony Hull predicted.
“The trend we are seeing currently is that in many of our markets, affordability of owning a home, particularly for first-time buyers, is driving activity at the lower end of the housing market. This has the impact of increasing unit volume while putting pressure on price. We expect that this trend will continue into 2012,” he said. — Katherine Clarke