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RE / MAX sees a small increase in sales but adds a lot of agents in the first quarter

RE / MAX announced Thursday that revenue increased slightly in the first quarter of 2021 and that it added more than 8,000 agents between January and March – more than any quarter in the last decade.

RE / MAX announced Thursday that revenue increased slightly in the first quarter of 2021 and that it added more than 8,000 agents between January and March – more than any quarter in the last decade.

The new numbers, released in the company’s quarterly report, show that RE / MAX grossed $ 72.3 million between January and March. This corresponds to an increase of 2.9 percent compared to the previous year. The company’s net income was $ 1.1 million – a little less than $ 1.3 million last quarter and less than $ 2.6 million a year ago.

While those numbers are more modest than what some other real estate giants like eXp Realty have reported this week, they mark an ongoing turnaround from mid-2020 when RE / MAX’s performance was hurt by the coronavirus and associated lockdowns.

RE / MAX also celebrated a growing number of agents in Thursday’s report, saying its ranks grew 6.4 percent to 140,214 agents. Outside the United States and Canada, the company’s agent count rose 0.7 percent to 84,771.

In the report, Adam Contos, CEO of RE / MAX said that “a resilient real estate market and record growth helped Motto deliver strong financial results for the first quarter.”

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“During that period, we also saw the largest increase in agent numbers in over a decade year over year. We added more than 8,000 new agents, driven by healthy agent growth in Canada and double-digit agent growth worldwide,” said Contos. adding, “We’re encouraged that many of the strong tailwinds we saw in the first quarter continued into April.”

Motto Mortgage – which was introduced in 2016 – received a number of headings in Thursday’s report. Among other things, the brand increased the number of franchise companies opened to 159, which corresponds to an increase of 27.1 percent compared to the previous year.

“The exponential growth we’ve seen with the Motto Mortgage brand and the diversification of franchise ownership across a variety of leading real estate brands is exciting,” said Ward Morrison, president of Motto Franchising, in the report.

RE / MAX stock traded at around $ 37 per share for most of Thursday. That price remained stable for most of the minutes after the company’s earnings were released. As of Thursday afternoon, RE / MAX’s market cap was just over $ 700 million.

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In its most recent February earnings report, RE / MAX reported that it posted revenue of $ 72.4 million for the fourth quarter of 2020. This corresponds to an increase of 6.2 percent compared to the previous year. The company attributed the growth to higher brokerage fees driven by rising property prices and more sales.

Previously, the company posted a 0.7 percent year-over-year revenue decline in the third quarter of 2020 to $ 71.1 million.

In Thursday’s earnings report, RE / MAX broken down some of the current dominant factors. One of these factors, according to the report, is that “homes are being sold feverishly, exacerbating historically low inventory levels.”

“On average, homes that were sold in March were on the market for just 38 days – almost three weeks less than the March average of 59 days over the past four years,” RE / MAX said.

As a result, homes sell fast and there is an “ever thinner range of options for buyers to consider,” although “the good news is the incredible demand and large number of transactions.”

Update: This post was updated after publication with additional information from RE / MAX’s results report.

Email Jim Dalrymple II

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