ZipRealty Inc.’s closed transaction sides grew by 28.5 percent during the second quarter from a year ago, but falling home prices limited growth in revenue to a more modest 5.6 percent.

The bottom line for the growing Emeryville, Calif.-based real estate brokerage was a $2.4 million second quarter loss, an improvement from the previous quarter’s $7.5 million loss but larger than the $1.7 million deficit the company posted a year ago.

ZipRealty Inc.’s closed transaction sides grew by 28.5 percent during the second quarter from a year ago, but falling home prices limited growth in revenue to a more modest 5.6 percent.

The bottom line for the growing Emeryville, Calif.-based real estate brokerage was a $2.4 million second-quarter loss, an improvement from the previous quarter’s $7.5 million loss but larger than the $1.7 million deficit the company posted a year ago.

The 6,017 transaction sides in which ZipRealty represented a homebuyer or seller generated an average of $5,269 in revenue, down 17.4 percent from a year ago but up slightly from $5,119 during the first quarter.

In a regulatory filing, ZipRealty President and CEO Pat Lashinsky attributed the uptick in average transaction revenue to fewer "non-standard transactions" in the mix, falling inventories in most of the 36 markets where the company is active, and greater stability in median prices.

With $44.8 million of cash and short-term investments on hand and no long-term debt, Lashinsky said ZipRealty’s strategy is to continue investing in its Web site, growing its agent force, and building local market share.

ZipRealty grew by 183 agents during the second quarter, employing 3,172 at the end of June — a 24 percent increase from the 2,559 agents employed at the same time a year ago.

In 2008, ZipRealty was the nation’s ninth-largest real estate brokerage in terms of transaction sides, according to rankings of top brokerage companies compiled by Real Trends (see story).

But the company’s Web site attracts more traffic than any other broker’s Web site, and consistently ranks as the fourth most popular real estate Web site overall, behind Realtor.com, Yahoo! Real Estate and Zillow, according to data collected by Hitwise (see story).

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription