Realogy Expects Continued Improvement in National Existing Home Sale Data
Anticipates a Modest Increase in Its Company-wide Year-over-Year Average Sales Price for April and May
May 24, 2011 // Franchising.com // PARSIPPANY, N.J. -- Realogy Corporation reported that based on closed and open home sale contract information from its franchisees and company-owned brokerage operations, it expects that the seasonally adjusted annual rate (SAAR) of existing home sales on a national basis should remain between 5.0 million to 5.2 million in each of April and May 2011. On that SAAR basis, existing home sales this year are tracking ahead of the full-year 2010 pace, even without the benefit of a Home Buyer Tax credit. Realogy also expects a modest increase in its average home sales price in April and May 2011 compared to the same period in 2010, which is consistent with the 2% increase the Company reported for the first quarter of 2011. Realogy has approximately 740 company-owned offices and approximately 3,500 franchisees across the United States.
"While 5.0 to 5.2 million SAAR unit existing home sales for April 2011, which is the expected range among economists, would represent a 10% to 14% decline from 2010 activity, the April and May unit home sales trend would continue the monthly sequential average gain we have seen since the end of the 2010 tax credit impact," said Realogy president and CEO Richard A. Smith. "Because the impact of the Homebuyer Tax Credit peaked in the second quarter of 2010, we expected to see a year-over-year decline in home sale transactions in the second quarter of 2011 both at Realogy and in the housing market in general. We believe the fact that our average sales prices are holding steady compared to last year is a strong positive."
Smith continued, "We expect the same factors causing a negative year-over-year comparison in the second quarter of 2011 to reverse in the third quarter. Looking beyond the second quarter, if NAR's current seasonally adjusted annual rate holds steady at approximately 5.0 million units in national sales, then home sale transactions during the third quarter of 2011 will likely experience year-over-year increases of approximately 20 percent compared to 2010."
Key Realogy Take-aways for Housing Market:
- Realogy sees a continuation of sequential average monthly improvement in national home sales on a seasonally adjusted annual rate basis since July 2010. To date, 2011 is tracking ahead of full-year 2010 on a SAAR basis.
- Average home sale prices at Realogy's franchise and company-owned brokerages in April and May 2011 have increased modestly from the same period a year ago, consistent with the 2% increase Realogy reported in the first quarter of 2011.
- As anticipated, year-over-year home sale comparisons for second quarter 2011 will decrease significantly from 2010.
- In the third quarter of 2011, Realogy expects those same comparisons to reflect significant year-over-year increases in home sale units.
About Realogy Corporation
Realogy Corporation (www.realogy.com), a global provider of real estate and relocation services, has a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby's International Realty®, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have approximately 14,600 offices and 260,400 sales associates doing business in 100 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a subsidiary of Apollo Global Management, LLC, a leading global alternative asset manager.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Realogy Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates" and "plans" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: adverse developments or the absence of improvement in the residential real estate markets, including, but not limited to, the lack of sustained improvement in the number of home sales and/or further declines in home prices, low levels of consumer confidence, the impact of the ongoing or future recessions and related high levels of unemployment in the U.S. and abroad, continuing high levels of foreclosures, and reduced availability of mortgage financing or financing availability at rates not sufficiently attractive to homebuyers; adverse developments or the absence of sustained improvement in general business, economic and political conditions, including, but not limited to, changes in short-term or long-term interest rates, or any outbreak or escalation of hostilities on a national, regional or international basis; and government regulation as well as legislative, tax or regulatory changes that would adversely impact the residential real estate market, including but not limited to potential reform of the financing of the U.S. housing and mortgage markets.
Consideration should be given to the areas of risk described above, as well as those risks set forth under the headings "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and in our other periodic reports filed from time to time, in connection with considering any forward-looking statements that may be made by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.