BrokerageIndustry News

Realogy: Market ‘difficult to predict’

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Real estate brokerage and franchise company Realogy has consolidated about 70 company-owned offices this year and most of its consolidations have concluded, the company announced during an earnings call on Thursday. Those consolidations are expected to reduce operating costs by $15 million on an annualized basis, the company reported. Richard Smith, company president and CEO, also said during the second-quarter earnings call that the housing market "has proven exceedingly difficult to predict," and this month markets the 37th consecutive month "in which our industry and our business have been under considerable downward pressure." The company had a net loss of $27 million in the second quarter, with company-owned offices reporting an 8 percent year-over-year decline in the average home prices in the second quarter and franchisees reporting a 5 percent year-over-year decline during the quarter. Home prices, said Smith, "continue to be negatively impac...