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Realogy warns of real estate slowdown

Big Q2 profit puts franchisor in the black for year to date

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Franchise giant Realogy Corp. turned a $222 million profit in the second quarter as sales and home prices surged, but warned that the third quarter is shaping up to be more challenging, with sales down 17 percent in June and July from a year ago.Realogy's strong second-quarter results -- boosted by the federal homebuyer tax credit -- helped bring the company back into the black for the year. The $25 million in net income posted for the first six months of 2010 compares to $274 million in losses at the same point in 2009."Clearly, Realogy had a strong second quarter, and we are pleased with our operating and financial results for the period," said Richard A. Smith, Realogy CEO, in a press release. "Looking forward, however, it is shaping up to be a difficult third quarter because of the expiration of the homebuyer tax credit and an uncertain near-term outlook for the economy."High affordability and near-record-low mortgage rates alone cannot offset the impact of high...