Real Continues to Strengthen Presence Throughout North America

Rhea-AI Summary

The Real Brokerage (NASDAQ: REAX), a rapidly growing real estate brokerage, announced significant expansion in North America with its agent count surpassing 19,000. The company's growth in 2024 is driven by the Private Label and ProTeams programs, attracting top-performing teams and agents. Notable additions include Inhabit Real Estate, TK Group & Club, Envision Real Estate, and several others, bringing substantial sales volumes. Key figures include $720 million in sales for Inhabit since 2020, $110 million for TK Group in 2023, and $80 million for Envision in 2023. These teams enhance Real’s footprint and contribute to its impressive performance.

Positive

• Agent count exceeds 19,000, indicating robust growth.
• The Private Label and ProTeams programs are core drivers of expansion.
• Inhabit Real Estate brings $720 million in sales since 2020.
• TK Group & Club generated $110 million in 2023 sales.
• Envision Real Estate completed $80 million in 2023 sales.
• The Expert Collaborative brought $220 million in sales over two years.
• Reward Realty produced $75 million in sales in 2023.
• Revenue growth through attracting high-performing teams and agents.
• Strengthening presence in major markets across North America.
• Recognition and accolades received by joining teams and agents.

Negative

• No direct mention of profitability or financial sustainability.
• Potential dilution of culture with rapid agent count increase.
• Increased competition as new agents and teams join.
• No specific financial projections or forward-looking statements.
• Risk of overexpansion leading to operational inefficiencies.

Insights

Market Research Analyst

The announcement of Real Brokerage Inc.'s agent count exceeding 19,000 is indicative of significant market expansion and growing influence in the real estate industry.

Real's Private Label and ProTeams programs have evidently played a key role in this growth. These initiatives offer flexibility and support to independent brokerages and teams, likely attracting a diverse range of real estate professionals to align with Real. This suggests that Real is adept at recognizing and addressing the needs of its target audience, which can be a strong competitive advantage.

From a retail investor's perspective, this growth signals possible increased revenues and market share for Real. However, it's also essential to consider the sustainability of this growth. While expanding agent count is promising, the company must maintain quality and effective management of these agents to ensure continued success.

Financial Analyst

Real's rapid increase in agent count to over 19,000 could have positive financial implications. Higher agent numbers typically translate to increased transaction volume, potentially leading to greater revenue from commissions and fees.

However, scalability and operational costs should be considered. Managing a larger agent network requires substantial investment in technology, training and support services. If Real can manage these costs effectively, the profit margins could improve significantly.

In the short term, investors might see an uptick in operating expenses as the company integrates new agents and teams. Long-term success will depend on how well Real monetizes its growing agent base while controlling costs.

Tech Expert

Real's reliance on proprietary technology to attract agents is noteworthy. The use of innovative tools and platforms can enhance agent productivity and satisfaction, giving Real a technological edge over traditional brokerages.

The company's ability to offer a unique agent value proposition through technology suggests a keen understanding of industry trends and agent needs. Emphasizing technology also implies potential for future scalability, as digital platforms can support significant growth with relatively lower incremental costs compared to traditional methods.

For retail investors, understanding the role of technology in Real's business model is crucial. Effective use of technology can lead to enhanced operational efficiency, better agent support and ultimately, higher profitability.

Fastest-growing, publicly traded brokerage wraps up another strong month of growth; Real’s agent count now exceeds 19,000

TORONTO & NEW YORK--(BUSINESS WIRE)-- The Real Brokerage Inc. (NASDAQ: REAX), the fastest-growing, publicly traded real estate brokerage, today announced that it continues to strengthen its footprint throughout North America following another strong month of agent attraction. Real’s agent count now exceeds 19,000.

“We couldn’t be happier that the Real platform, which is rooted in a unique agent value proposition, proprietary technology and a culture of innovation and collaboration, continues to attract some of our industry’s top professionals,” Real President Sharran Srivatsaa said. “As Real’s footprint continues to grow, we owe our success to our agents and the talented individuals, teams and independent brokerages we attracted in May that make us stronger collectively.”

Key drivers of Real’s rapid growth in 2024 include the company’s Private Label and ProTeams programs, which were introduced at the start of the year to make it easier for independent brokerage firms and teams to align with the company. Through Private Label, Real’s white label program, independent brokerages can maintain their own brand while benefiting from Real’s resources. The ProTeams program offers flexibility by allowing teams to customize team members’ caps, splits and fees down to the individual team member level, enabling them to embrace the structure that works best for them while enjoying the advantages associated with being a part of Real.

Below are some of the top-producing teams and agents who joined Real in May:

• Inhabit Real Estate, led by Eric Hagstette. The independent brokerage serves the Portland, Ore., metropolitan area and Southwest Washington. It brings 30 agents and joins under Real’s Private Label program. Since its founding in 2013, Inhabit has developed a reputation for its highly trained agents, many of whom create their own inventory by building relationships with developers and builders to deliver new homes to the market. It is also known for its work in the luxury market. Inhabit has closed home sales totaling $720 million since 2020, including $134 million in 2023.
• TK Group & Club, led by Shyne Taghvaei and Ryan Krishnan. The 20-agent multicultural team serves Vancouver, British Columbia, and the lower mainland. Founded in 2020, the team has distinguished itself by having area experts in every city it serves with the ability to serve clients in 14 languages. TK Group & Club generated home sales valued at $110 million in 2023.
• Envision Real Estate, led by Beth Matthews. A certified women-owned business, the 25-agent team has served Buffalo, N.Y., and the surrounding markets since 2018. Envision Real Estate has been recognized as the Who's Who in Real Estate by Buffalo Business First for the past three consecutive years. Envision completed home sales valued at $80 million in 2023.
• The Expert Collaborative, led by John Evenson. The team brings 46 agents who serve the entire state of Arizona. The team has been recognized among the Top 1% of teams in the country by RealTrends. Since its founding in 2016, The Expert Collaborative has gained a reputation for helping people build generational wealth by investing in real estate and transitioning into real estate as a full-time career. Over the past two years, the team has closed real estate transactions valued at $220 million, including $80 million in 2023.
• Reward Realty, led by Caroline Hobbs. The five-agent team is located in Morgan Hill, Calif., and serves Silicon Valley and surrounding areas. Founded in 2013, Reward Realty joins as part of Real’s Private Label Program. Hobbs has been recognized as one of the top agents by the Santa Clara County Association of Realtors, and Reward Realty was voted “Best Real Estate Brokerage” by The Morgan Hill Times in 2022. The independent brokerage generated total home sales of $75 million in 2023.
• Dave Seibert Real Estate Group, led by Dave Seibert. The nine-agent team serves the Richmond, Va., metropolitan area. The team has been named Richmond’s Best Realtor by Style Weekly on multiple occasions since its founding in 2013. It generated home sales valued at $56 million in 2023.
• The Gold Group, led by Brian Zamora. The team brings eight agents who serve California’s Sacramento Valley. Since its inception in 2018, the Gold Group closed home sales totaling $55 million in 2023.
• Align Real Estate, led by Christy Lundy and Angela Pinamonti. Align brings 18 agents to Real and serves San Diego and its surrounding counties. Since its inception in 2018, the team has distinguished itself by building strong client relationships that allow people to create wealth and find their dream home. The team has been named a Top 100 agent on Facebook by Spark two years in a row and closed home sales totaling $54 million in 2023.
• The Peter Luu Signature Group, led by Peter Luu. The team’s seven agents serve Central Florida, including Orlando, Tampa and the Space Coast. A founding member of Real’s Luxury Division, Luu holds the distinction of being recognized as the No. 2 Vietnamese agent in the nation by the Vietnamese National Association of Real Estate Professionals in 2023. He’s also been ranked in America’s Top 100 agents in Orlando since 2017. The team closed home sales valued at $54 million in 2023.
• The 904 Home Guide Team, led by Mike Rolewicz. The team’s four agents serve all of Northeast Florida, including Jacksonville, Ponte Vedra, St. Augustine, Nassau County and St. Johns County. Each year since its founding in 2020, The 904 Home Guide ranked in the top 0.5% of agents within the Northeast Florida Association of Florida Realtors. It also ranked No. 13 on the Jacksonville Business Journal’s 2024 Top Large Team list. The team generated $43 million in home sales in 2023.
• Real Estate One, led by Brett Gurr and Kurtis Hawkins. The five-agent team serves Southern Alberta. Both Gurr and Hawkins are top producers, and Hawkins received the Content Creator of the Year Award from Lethbridge Real estate.com in 2021 and 2022. The team closed home sales totalling $40 million in 2023.
• The D Team, led by Kris and Jackie Durbin. The 21-agent team serves the Phoenix metropolitan area west to Lake Havasu City, Ariz., and north through the White Mountains. Since its founding in mid-2022, the team has closed home sales totaling $90 million, including $40 million in 2023.
• The Becky Parker Team, led by Becky Parker. The team brings eight agents who serve Central Virginia and Lake Gaston, N.C. A 21-year industry veteran, Parker is a top producer. The team generated home sales valued at $40 million in 2023.
• The Hopper Group, led by Robb Hopper. The team’s 10 agents serve the Tulsa metro and Northeast Oklahoma. Hopper is a multi-year recipient of the Children’s Miracle Network’s Miracle Agent Award for his contributions to his local CMN hospital. The team generated home sales totaling $38 million in 2023.
• The Tim Garrity Team, led by Tim Garrity. The team serves Southeastern Pennsylvania and Southern New Jersey and brings 10 agents to Real. Garrity joins as a Co-Broker and is a nine-time recipient of the Philadelphia Five-Star Real Estate Agent award. The team closed $30 million in home sales in 2023.
• Taylor Real Estate, led by Blake Taylor. The three-agent team specializes in luxury residential properties and land from downtown Austin, Texas, west to the Hill Country and Highland Lakes. The team has been recognized as a Top 20 team on multiple occasions by the Austin Business Journal. It also received the Homebuilder's Association of Austin Realtor of the Year Award in 2020. The team has closed sales totaling more than $148 million since 2020, including $29 million in 2023.
• Journey Real Estate, led by Corey Robinson. The five-agent team serves Marin and Sonoma counties in San Francisco’s North Bay. Journey, which joins as part of Real’s Private Label Program, is a multi-year recipient of the Nextdoor Neighborhood Favorite Award. The independent brokerage has closed home sales totaling more than $125 million since 2020, including $28 million in 2023.
• United Property Investment, led by Danny Humphreys. A solo agent, Humphreys serves Northern Virginia and specializes in serving the real estate needs of Veterans and military service personnel as a way to give back to those who have served the country. Humphreys ranks in the Top 1% of agents for Veterans by the nation’s largest VA lender. United Property Investment closed home sales totaling $27 million in 2023.
• LIV Partners, led by Stefanie and Vince Ridolfo. LIV Partners’ three agents serve the Chicago Northwest suburbs. The team consistently ranks in the Top 1% of agents by the Chicago Association of Realtors. Since its founding in 2015, LIV Partners has sold 750 homes valued at more than $250 million, including $25 million in 2023.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence throughout the U.S. and Canada, Real supports more than 19,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding the success of Real’s programs that are available to agents and Real’s ability to continue to attract agents.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, the success of Real’s programs,Real’s ability to attract new agents and retain current agents and those risk factors discussed under the heading “Risk Factors'' in the Company’s Annual Information Form dated March 14, 2024, a copy of which is available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606777538/en/

Investor inquiries, please contact:

Ravi Jani

Vice President, Investor Relations and Financial Planning & Analysis

investors@therealbrokerage.com

908.280.2515

For media inquiries, please contact:

Elisabeth Warrick

Senior Director, Marketing, Communications & Brand

elisabeth@therealbrokerage.com

201.564.4221

Source: The Real Brokerage Inc.

FAQ

What is Real Brokerage's (REAX) recent growth update?

Real Brokerage has increased its agent count to over 19,000, driven by its Private Label and ProTeams programs, attracting top-performing teams and agents.

How many agents does Real Brokerage (REAX) have in 2024?

Real Brokerage has surpassed 19,000 agents in 2024.

What are the key programs driving Real Brokerage's growth?

The Private Label and ProTeams programs are key drivers, helping independent brokerages and teams align with Real Brokerage while maintaining flexibility.

What notable teams joined Real Brokerage (REAX) recently?

Notable teams include Inhabit Real Estate, TK Group & Club, Envision Real Estate, and The Expert Collaborative, among others.

What are the sales figures for Inhabit Real Estate since joining Real Brokerage?

Inhabit Real Estate has closed home sales totaling $720 million since 2020, including $134 million in 2023.

What was TK Group & Club's sales volume in 2023?

TK Group & Club generated home sales valued at $110 million in 2023.

What is Envision Real Estate's sales accomplishment for 2023?

Envision Real Estate completed home sales worth $80 million in 2023.

Which programs allow independent brokerages to join Real Brokerage?

The Private Label and ProTeams programs enable independent brokerages to join Real Brokerage while retaining their brand and flexibility.

What is The Expert Collaborative's contribution to Real Brokerage?

The Expert Collaborative has closed real estate transactions valued at $220 million over the past two years, including $80 million in 2023.

What risks does Real Brokerage face despite its growth?

Real Brokerage faces risks such as potential cultural dilution, overexpansion, operational inefficiencies, and increased competition.