Key Takeaways:
– Anywhere Real Estate delivered considerable profitability in the third quarter despite stalling home sales.
– The company closed the quarter with $1.6 billion in revenue, a 12% decrease from the previous year.
– Net income increased by 135% compared to the same time last year, reaching $129 million.
– Anywhere focused on strategic progress, including expanding their franchise business, integrating the consumer transaction experience, taking advantage of a better competitive environment, and resolving significant litigation.
– Home sale transaction volume dropped by 13% compared to last year.
– Existing home sales declined throughout the summer, with July at 4.07 million, August at 4.04 million, and September at 3.96 million.
– Home prices remained higher than last year but moderated during the summer, with September’s median sales price at $394,300, a 2.8% increase from September 2022.
– Anywhere saved approximately $60 million in Q3 and over $160 million year-to-date through cost-saving strategies.
– Transaction sides at Anywhere Brands dropped by 18% year over year to 200,619, while Anywhere Advisors recorded a 17% decline to 71,794.
– The average home sale price increased by 5% for both Anywhere Brands and Anywhere Advisors, reaching $470,818 and $712,232, respectively.
– Anywhere reduced its debt by $281 million through successful debt exchanges, open market bond repurchases, and repayment of a portion of their revolver balance.
HousingWire:
Despite stalling home sales in the third quarter, Anywhere Real Estate managed to deliver “considerable profitability.” The company closed the third quarter with $1.6 billion in revenue, which is 12% lower than Q3 2022, but $129 million in net income, an increase of 135% compared to the same time last year.
“Anywhere led through a difficult housing market to deliver considerable profitability and achieve substantial debt reduction,” Ryan Schneider, Anywhere president and CEO said in a statement. “We accelerated our strategic progress, including expanding our high-margin franchise business, integrating the consumer transaction experience, taking advantage of the better competitive environment, and putting significant litigation behind us, to set Anywhere up for powerful momentum as the housing market improves.”
The company produced these results as home sale transaction volume dropped 13% over last year. Existing home sales fell steadily throughout the summer, with home sales trending for the year at 4.07 million in July, 4.04 million in August, and 3.96 million in September.
Meanwhile, home prices remain higher than last year but moderated throughout the summer. In July, the median sales price was $405,700, sliding down to $404,100 in August and $394,300 in September. However, that price is still 2.8% higher than in September 2022.
This quarter’s results are in part due to the company’s cost-saving strategy. Just in Q3, Anywhere saved approximately $60 million and over $160 million year-to-date. The projected number for the full year is $200 million.
During the third quarter, transaction sides at the firm’s franchise group, Anywhere Brands, dropped 18% year over year to 200,619. The firm’s owned brokerage group, Anywhere Advisors, recorded a 17% annual decline in transaction sides to 71,794.
Both Anywhere Brands and Anywhere Advisors reported a 5% increase in their average home sale price, inching up to $470,818 and $712,232.
The company also reported reducing its debt by $281 million thanks to “successful debt exchanges, open market bond repurchases and repayment of a portion of their revolver balance.”
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Property Chomp’s Take:
In the third quarter, despite the slowdown in home sales, Anywhere Real Estate managed to achieve “considerable profitability.” The company reported $1.6 billion in revenue, which is 12% lower than the previous year, but saw a significant increase in net income at $129 million, a 135% rise compared to the same period last year.
Ryan Schneider, the president and CEO of Anywhere, acknowledged the challenging housing market but expressed satisfaction with the company’s performance. He mentioned that Anywhere made progress in expanding its high-margin franchise business, enhancing the consumer transaction experience, taking advantage of a more favorable competitive environment, and resolving significant litigation. These efforts position Anywhere for strong momentum as the housing market improves.
While Anywhere Real Estate achieved profitability, home sale transaction volume declined by 13% compared to the previous year. Existing home sales experienced a steady decrease throughout the summer months, with July, August, and September recording 4.07 million, 4.04 million, and 3.96 million sales respectively.
On the other hand, home prices remained higher than last year but showed moderation during the summer. The median sales price decreased from $405,700 in July to $394,300 in September. However, this price is still 2.8% higher than September 2022.
Anywhere’s cost-saving strategy played a role in achieving positive results for the quarter. The company saved approximately $60 million in Q3 and over $160 million year-to-date. It is projected that Anywhere will save a total of $200 million by the end of the year.
Transaction sides at Anywhere Brands, the company’s franchise group, dropped by 18% year over year to 200,619, while Anywhere Advisors, the owned brokerage group, experienced a 17% decline to 71,794 transaction sides. However, both groups reported a 5% increase in their average home sale price, reaching $470,818 and $712,232 respectively.
Furthermore, Anywhere Real Estate successfully reduced its debt by $281 million through debt exchanges, bond repurchases, and partial repayment of its revolver balance.
In conclusion, despite the challenges in the housing market, Anywhere Real Estate managed to achieve considerable profitability in the third quarter. The company’s cost-saving efforts, strategic progress, and adaptability to the competitive environment have contributed to its success. As the housing market improves, Anywhere is well-positioned to capitalize on the momentum and continue delivering positive results.
