According to an AP story, Realogy (H) will reaffirm its guidance at a meeting this week with security analysts and investors. Realogy had previously announced that it expects full-year earnings to come in at between $250 million and $340 million on revenues of between $6.4 billion and $6.7 billion.
Given the declining real estate market, it will be interesting to see how Realogy weathers this tough market. Even though homes are on the market longer right now, I also believe the number of real estate transactions is up. Real estate speculators and others want to get out of the market while they still can.
One thing I have noticed is that locally there has definitely been a reduction in the number of houses for sale by owner. I think people recognize that this is a tough market, and so they are soliciting expert real estate agent assistance in selling their homes where they might have tried selling on their own during the hot market. This might temper the impact of the real estate slump on Realogy. In addition, there are signs that the real estate market might acheive a soft landing. I think it might still be too early to tell, but this too could really help maintain Realogy’s value. I will be watching closely.