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VALUATIONS / REAL TRENDS 500 OBSERVATIONS

We crunched the data to provide insights on the top 500 brokerages in our rankings.

For 33 years, brokers, agents, analysts, and investors highly anticipate the release of REAL Trends’ acclaimed brokerage rankings. Without fail, this report unveils a plethora of valuable information and insights into the residential real estate industry.

The 2020 REAL Trends 500 (the calendar year 2019 production data) saw a new member to the top five, a major national firm exhibiting triple-digit, year-over-year growth. Data also shows the nation’s largest firms continuing to capture market share. Below are some observations as we continue to digest the data:

  • With 329,680 residential transaction sides, HomeServices of America edged out Realogy Brokerage Group (formerly NRT LLC), which had 325,652 sides for the year, for the top spot in the REAL Trends 500.
  • With higher-end brands like Coldwell Banker, Sotheby’s International Realty, and Corcoran, Realogy Brokerage Group maintained the top spot measured by volume, tallying a robust $170 billion. This easily topped No. 2 HomeServices of America, which came in at $132 billion.
  • Compass held the No. 3 spot in closed volume with $91 billion, double over the previous year. It also moved up a spot to enter the top five by sides, with 84,732, thanks to several savvy acquisitions in its primary markets.
  • eXp Realty was the only other firm to hold spots in the top five by both sides and volume. Spurred by another year of strong organic growth, eXp increased its sides count (130,627) and volume ($36 billion) by an impressive 78% and 85% respectively over the previous year.
  • Regional powerhouse Hanna Holdings also had a big year as a result of its acquisition of Allen Tate. It placed No. 4 in sides and No. 7 in volume with 100,589 and $22 billion, respectively.
  • Redfin and HomeSmart were the only other firms to finish in the top 10 in both sides and volume, with both exhibiting growth in 2019 that outpaced the market.
  • RE/MAX once again had the most brokerages qualify for the rankings, with 524 affiliates closing at least 500 residential transaction sides.
  • Keller Williams once again dominated the REAL Trends 500, with 166 of its affiliates closing the minimum qualifier of 1,992 residential transactions in 2019. One-third of the top 500 firms in the country were KW.
  • The REAL Trends 500 collectively closed nearly 3.5 million residential sales transactions valued at over $1.3 trillion in 2019. This represents year-over-year sides and volume growth of 5.3% and 9.7%, respectively, against a national existing home sales factor that was flat. The REAL Trends 500 once again gained market share.
  • A record 301 firms recorded over $1 billion in residential sales in 2019.
  • The average sales price for REAL Trends 500 firms was up 4.2% to a record $376,430.
  • Realogy firms collectively accounted for 21.9% of the sides and 25.5% of the volume of the REAL Trends 500.
  • Independent firms collectively accounted for 33% of the sides and 35.7% of the volume of the REAL Trends 500.
  • Even though there were consolidation and growth at the top, overall, more brokerages experienced a year-over-year decline in production (893) than those that grew (656) of all the firms that participated in the rankings.
  • Agent productivity for the REAL Trends 500 came in at 7.4 transactions per agent, which was flat relative to the prior year.
  • Flat/Monthly/Transaction Fee firms, like West USA Realty, Fathom Realty, Equity Real Estate, JP & Associates, Silvercreek Realty Group, and Virtual Properties (all in the top 50), are growing at a pace that continues to outpace the market.
  • Firms on the East and West coasts naturally continue to dominate when it comes to the average sales price. Brown Harris Stevens handily led the way with an average sales price of nearly $2.1 million.

Overall, 2019 was another fascinating year in the residential real estate industry, and these observations are just a glimpse of what you can find in the full report. Visit our website today to view and download the REAL Trends 500!

To see the REAL Trends 500, go to www.realtrends.com/rankings/rt500
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This article originally appeared in the May 2020 issue of the REAL Trends Newsletter. It is reprinted with permission of REAL Trends, Inc. Copyright © 2020. To read the rest of this issue & more, please visit our Real Trends page online.

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