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After a tough 2022, real estate-related companies continued to lose money in the first quarter of 2023. However, according to Daniel Houston’s Intel analysis, both agents and companies appear to have adjusted to the losses and are turning their attention to the rest of 2023, when better conditions are anticipated.
This optimism has been reflected in the relatively warm reception given to the sector by investors in recent days. Beginning on May 5, shares in Redfin, Opendoor, Compass and Offerpad all began to climb, resulting in a positive tone in many earnings reports that were otherwise fairly grim. While numbers were down this quarter, investor confidence suggests that a brighter outlook might be on the horizon.
Check out the earnings-related news to see how your brokerage or favorite real estate-related investment fared in the first three months of 2023.
Realtor.com parent Move saw traffic and revenue fall in
Between January and March, Realtor.com had an average of 72 million unique monthly users — down 24 percent compared to one year earlier, according to the company’s first-quarter earnings report.
Zillow begins ‘critical’ year with mounting losses, falling Q1
Zillow brought in $469 million in revenue, falling 13 percent from the $536 million it brought in a year earlier during a period that preceded mortgage rate hikes and sluggish sales.
Fannie and Freddie boost profits even as mortgage business
Fannie Mae acquired $68 billion in single-family mortgages during Q1, the slowest period in more than two decades. Freddie Mac’s $59 billion haul was the smallest since 2014.
United Wholesale Mortgage shares tumble as originations
UWM CEO Mat Ishbia highlights “operational profitability” as $337 million write-down in fair value of mortgage servicing rights drives $138.6 million first-quarter loss.
Rocket Mortgage parent posts 2nd consecutive $400M+ quarterly
CEO Jay Farner says the purchase pipeline has been growing, but constrained housing inventory and affordability present ongoing challenges.
Compass revenue drops in Q1, but losses continue
The brokerage brought in a total of $957 million in revenue and lost $150 million. The results are something of a repeat from the fourth quarter of 2022.
RE/MAX revenue, US agent count, continue to drop in
Total revenue dropped 6.2 percent year over year and U.S. agent count fell 5.4 percent as the real estate brokerage continues to wrestle with a shifting market.
Anywhere shares seesaw after company reports $138M loss in
The brokerage giant spooked investors with its latest earnings report, in which first-quarter revenues were down 31 percent year over year.
EXp Realty posts revenue decline as transactions and sales dip in
EXp World Holdings tallied a 16 percent decrease in revenue in the first quarter as transaction sides and volume at its brokerage, eXp Realty, fell by 10 percent and 20 percent, respectively.
Fathom Realty narrows losses but agent growth slows in
With 10,628 agents on board as of March 31, Fathom grew by 258 agents in the first three months of the year but posted a $5.7 million Q1 net loss, according to their earnings call.
CoStar Group bucks sluggish market as revenue jumps 13% in
The company, which in recent years has been making inroads into the residential space, reported that both Homes.com and Apartments.com saw significant growth in the first quarter of 2023.
Vrbo parent Expedia Group posts Q1 revenue gains as losses
Despite reporting its highest-ever first-quarter revenue, Vrbo parent Expedia Group reported losing $145 million in the first three months of the year.
Offerpad narrows losses despite another quarter of falling
Following a dramatic fourth quarter in which the iBuyer posted losses of $121.1 million, Offerpad improved its net loss by 51 percent to $59.4 million in the first quarter as it continued to struggle to adapt to a shifting market.
Opendoor avoids epic 2022 losses in Q1, but revenue remains
The iBuying giant saw revenue dip 39 percent year over year at the beginning of 2023. It also sold and bought fewer homes compared to the beginning of 2022.
Christy Murdock is a freelance writer, coach and consultant and the owner of Writing Real Estate. Connect with Writing Real Estate on Instagram and subscribe to the weekly roundup, The Ketchup.
