Keller Williams, the Texas-based real estate franchisor, reported its year-to-date results for closings, transactions and sales volume, which showed an overall shrinking in domestic markets while the company saw significant growth overseas.
“While we are less than pleased to report our sales volume is down by a low, single-digit percentage year to date, there’s immense opportunity in this market for our agents,” said Marc King, president at KW in a statement. “And, we are leaning into our powerful culture, training and technology to enable our agents to map a growth trajectory for their businesses based on the new math required by this market.”
Though the company is not publicly traded and does not report more detailed SEC-required financial data, the release broadly outlines Keller Williams’ real estate activity and other business highlights.
Most notably: Domestic transactions were down 12.6% compared to the first three quarters of 2021 at 884,500, and sales volume was down 3.0% year-over-year to reach $381.4 billion. New listings dropped by 7.7%, to 536,700—all reflecting a quickly contracting 2022 housing economy.
“We have moved from a speed-based market to a skill-based market,” King added. “Lead conversion rates from months back are no longer applicable to find those motivated to transact in this market.”
On the other hand, the company saw continued strong growth from its international segment, Keller Williams Worldwide, with sales up nearly 30%, clocking in at $11.1 billion, transactions rising 25.3% at 56,000 and new listings rising by 2.1%, reaching 85,000.
The company also saw its international agent count rise 21.2%, with 17,076 agents operating outside the United States and Canada. The domestic agent count rose fractionally—about 2% from Q1 of this year, reaching 177,377.
Nearly every real estate company has been hit hard by a housing market contraction that began in the spring as the Federal Reserve began raising interest rates. Most have indicated they are expecting depressed housing activity at least through early next year, as inflation and mortgage rates continue to weigh on consumers.
“As we face increasing macroeconomic headwinds, we are preparing for what we expect to be a slower growth period,” said Sajag Patel, chief operating officer at KW, in a statement. “Yet, our value proposition in training and coaching is specifically geared to enable our agents to take more market share during economic shifts.”