Keller Williams reports strong quarter but slowdown looms

Sales volume and deal activity rise, but new listings fall

TRD NATIONAL /
May.May 08, 2020 10:00 AM
Gary Keller (Credit: Keller Williams)

Gary Keller (Credit: Keller Williams)

Keller Williams reported a strong start to 2020 with a nearly 11 percent increase in sales volume — but a drop in new listings signals trouble ahead.

In the U.S. and Canada, Keller Williams agents closed 224,759 deals in the first quarter, 4.8 percent more than a year ago. Its sales volume rose 10.6 percent to $70.2 billion, up from $63.5 billion. The company is the largest franchise brokerage in North America.

The company’s 10,500 agents outside of the continent closed 8,249 deals totaling $1.3 billion in sales volume, up 10.8 percent year-over-year.

As of March 31, the company said, it had 169,655 agents worldwide, virtually unchanged from 169,317 at the end of last year. Keller Williams began a push early in 2019 to remove ghost agents — those who are licensed with the company but are no longer working.

The company reported a drop in the number of homes it contracted to bring to market, however.

In the U.S. and Canada, agents listed 169,890 properties, down 4 percent from the first quarter of 2019. Outside North America, new listings dropped 2.2 percent with agents bringing 22,497 properties to market.

Despite the drop in listings, the company claims that it performed better than the overall U.S. housing market, citing a National Association of Realtors report that found the number of active home listings in the U.S. had fallen 10.2 percent year-over-year by the end of March.

The Gary Keller-led company is private but voluntarily announces its performance on a quarterly basis.

A spokesperson for the company attributed the drop in new listings to the coronavirus pandemic.

In response to the crisis, Keller Williams announced in late March it would halve costs related to its agent coaching programs and a spokesperson confirmed the company was carving out an additional $20 million in support to agents.

The company has been investing heavily in technology in recent years. It launched a revamped website in January and a consumer-facing home search app in February. It reported that within about six weeks, 60 million searches were done on the app, its new website and agent sites.

Worldwide, Keller Williams’ agents wrote 285,639 contracts during the quarter that would be worth $87.5 billion in sales should the deals close in the future.

Last year, the company’s agents closed over 1.1 million deals, up 3.4 percent from 2018. Global sales volume reached $351.2 billion, a 5.6 percent increase.

Josh Team, president of Keller Willaims, said the company is forecasting a 20 to 30 percent drop in sales volume, though he noted that could change.

“It’s a challenge to predict what’s going to happen in such unprecedented times with so many variables playing into what happens next in each state and when,” he said in a statement.

Write to Erin Hudson at [email protected]


Related Articles

arrow_forward_ios
Whose sale is it anyway? Keller Williams targets former top agent for advertising past deals

Whose sale is it anyway? Keller Williams targets former top agent for advertising past deals

Whose sale is it anyway? Keller Williams targets former top agent for advertising past deals
Glenn Sanford (Credit: Twitter, Pixabay)

Virtual brokerage eXp sees first profitable quarter

Virtual brokerage eXp sees first profitable quarter
The New York State Senate subpoenaed several top names in real estate

Elliman, RE/MAX, Keller Williams subpoenaed in discrimination probe

Elliman, RE/MAX, Keller Williams subpoenaed in discrimination probe
From left: Ilan Bracha, Haim Binstock, Richard Amaton and Mark Chin (Credit: Getty Images)

Ilan Bracha sells Keller Williams NYC

Ilan Bracha sells Keller Williams NYC
Keller Williams' Josh Team (Credit: Keller Williams)

Keller Williams reports sales bump with fewer agents in 2019

Keller Williams reports sales bump with fewer agents in 2019
Keller Williams' Ilan Bracha and 1155 Ave of Americas (Credit: Google Maps)

Keller Williams Midtown claimed it would shutter to avoid $2M in rent: lawsuit

Keller Williams Midtown claimed it would shutter to avoid $2M in rent: lawsuit
From left: Jeff Cohn and Gary Keller

Gary Keller walks into Berkshire Hathaway’s backyard and takes its top team

Gary Keller walks into Berkshire Hathaway’s backyard and takes its top team
Daily Digest Thursday

WeWork’s Dock 72 location off to slow start, Keller Williams product chief is out

WeWork’s Dock 72 location off to slow start, Keller Williams product chief is out
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...