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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