During the third quarter of 2013 as compared to the same period in 2012, the Realogy Franchise Group (RFG), our franchise segment, and NRT, the operator of our company-owned brokerage offices, reported closed homesale transaction gains of 19 percent and 17percent , respectively. Average homesale price improved 10 percent at RFG and 8 percent at NRT compared with the third quarter of 2012. NRT’s average homesale price of approximately $476,000 is nearly double the national average of $255,000.
“In the fourth quarter, we expect year-over-year homesale transaction volume growth to continue, however, at a comparatively slower pace than the uncharacteristically strong fourth quarter of last year, which was influenced by the then-impending change in the capital gains taxes,” says Anthony E. Hull, Realogy’s executive vice president, chief financial officer and treasurer. “Accordingly, we expect that fourth quarter homesale transaction volume for RFG and NRT combined should increase 6 percent to 8 percent compared with the fourth quarter of 2012, even on the heels of the extremely strong transaction volume increases in the third quarter. Looking ahead, we expect full-year 2013 homesale transaction volume to increase 17 percent to 19 percent compared to 2012, resulting in annual Adjusted EBITDA for 2013 in the range of $785 to $800 million, an increase of 16 percent to 19 percent year-over-year. This reflects the expected impact from reduced refinance activity, principally in our PHH Home Loans mortgage origination venture, on our fourth quarter financial results.”
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