After a robust Q2 2019 performance despite some road bumps in Canada and the U.S., real estate brokerage RE/MAX is looking towards sustained strength in all metrics for the full year.
Overall agent count grew by 3.2% year-over-year, to a total of 127,020 agents. Canada and the U.S. still represented the larger fraction of the real estate firm’s workforce, but their combined agent count fell by 2% annually to end up at 84,133 agents.
This weakness was counteracted by the RE/MAX Motto Mortgage franchise, which expanded to 98 offices.
“Continued Motto Mortgage expansion and healthy international RE/MAX growth helped offset lower revenue in the second quarter driven by ongoing uneven housing market conditions in the U.S. and Canada,” RE/MAX Holdings CEO Adam Contos.
“Against this backdrop, we continue to leverage the strength of our business model to deliver profitable growth by prudently managing our cost structure while making the necessary strategic investments in our network, our value proposition and future growth opportunities.”
The possibility of better housing market conditions on both sides of the border is giving RE/MAX hope for a strong 2019 finish.
“As we move through the second half of 2019, we remain cautiously optimistic that the U.S. housing market will show signs of improvement. Given lower interest rates, solid demand, and increasing inventory, the ingredients are there to spur increased home sales, but supply and affordability remain overhangs.”
For the full year, RE/MAX Holdings adjusted its expectations for agent count increase from 2.0% to 4.0% annually. Revenues, including those from marketing funds, are expected to range from $279.5 million to $283.5 million.