Anywhere Real Estate Inc. Reports Stable Performance Amidst Challenging Market Conditions

Anywhere Real Estate Inc. has released its financial results for the second quarter of 2024, demonstrating resilience in a subdued residential market. The company reported revenue of $1.7 billion, which remained essentially flat compared to the same period last year. Despite the challenging market conditions, Anywhere Real Estate managed to hold its ground, showcasing its ability to navigate through a complex real estate landscape.

One of the key highlights of the report was the increase in combined closed transaction volume, which saw a 3% year-over-year growth. This growth was primarily driven by an 8% increase in prices, offsetting a 5% decline in units. The company’s ability to maintain transaction volume growth in a market characterized by low inventory levels is a testament to its strong market position and effective strategies.

Improved Profitability and Cost Management

Anywhere Real Estate Inc. demonstrated improved profitability in the second quarter of 2024. The company reported a net income of $30 million, representing a significant increase of $11 million compared to the same period in 2023. This improvement in net income was further reflected in the adjusted net income, which rose by $10 million year-over-year to reach $37 million.

The company’s focus on operational efficiency was evident in its Operating EBITDA, which improved by $13 million year-over-year to $139 million. This increase in Operating EBITDA underscores the company’s ability to enhance its operational performance even in a challenging market environment. Furthermore, Anywhere Real Estate’s cost-saving initiatives yielded impressive results, with approximately $30 million in savings realized during the quarter. The company now expects full-year cost savings to reach $120 million, an increase of $20 million from previous projections.

Stability in Commission Splits and Luxury Segment Performance

One of the notable trends observed in the second quarter was the continued stability in commission splits. The company reported commission splits of 80.5%, up 40 basis points year-over-year. This marks the seventh consecutive quarter of more stable splits, indicating a consistent approach to agent compensation and retention.

Anywhere Real Estate’s luxury brands, including Corcoran and Sotheby’s International Realty, continued to outperform the market. These premium brands achieved positive year-over-year unit growth, demonstrating their strength and appeal in the high-end real estate segment. The strong performance of the luxury segment highlights the company’s diverse portfolio and its ability to cater to various market segments effectively.