RE/MAX (RMAX) Stephens 26th Annual Investment Conference | NASH2024 summary

Macroeconomic and industry outlook

• Expectation for U.S. housing market to be modestly up next year, with home prices flattish to slightly up.

• 30-year mortgage rates and supply remain key factors influencing housing activity.

• Political impacts on housing seen as neutral, with agent commissions expected to remain largely unchanged in the near term.

• Normalized U.S. existing home sales projected around 5.5 million, but reaching that level may take several years.

• Generational wealth transfer and pent-up demand from Millennials and Gen Z are driving continued housing demand.

Industry changes and adaptation

• Major NAR practice changes: commissions no longer posted in MLS and mandatory buyer agreements before showings.

• Organization responded with hybrid training and local mentorship to help agents adapt to new rules.

• High agent productivity and professionalism cited as advantages in managing industry transitions.

• Industry fragmentation and uncertainty are creating opportunities to recruit independent agents seeking stability.

• Changes may help cleanse lower performers and part-timers from the industry, benefiting full-time professionals.

Business model, growth, and financials

• Franchise model generates strong cash flow, with 65% of revenue tied to agent count and 20-25% variable with transaction volume.

• U.S. agent count has declined 5-6% in recent years; focus is on acquisition and value proposition to stabilize and grow.

• Revenue per agent is highest in the U.S., with international agents contributing about a tenth as much.

• Franchise sales and independent broker conversions are key to boosting agent count and market share.

• Diversification efforts include expanding into mortgage services and digital channels to enhance revenue streams.