RE/MAX Holdings, Inc. (NYSE: RMAX), which counts more than 130,000 agents in its network, today provided an update on the COVID-19 impact to the company’s operations in advance of the company’s first-quarter earnings release expected to be issued on May 6, 2020.
“Although we entered 2020 with momentum, the growing and rapidly evolving COVID-19 pandemic is increasingly impacting the worldwide housing market and our operations,” said Adam Contos, RE/MAX Holdings CEO. “Factors such as social distancing, governmental stay-at-home orders, variances in whether real estate is designated as an essential service, and growing health and economic concerns are slowing the amount of home buying, selling and borrowing activity typical at this point in the year.”
The current RE/MAX agent count.
In a press release, the company stated, “In the U.S. and Canada, many transactions initiated in the early stages of the health crisis were able to close, contributing to relatively strong March housing statistics; however, the pipeline of new housing activity has been increasingly compromised. As a result, near-term housing results are anticipated to decline materially, which is expected to negatively affect the company’s financial and operating performance during the second quarter and for the foreseeable future. The magnitude and duration of the impact from COVID-19, especially on consumer behaviors, are unknown and therefore cannot be reasonably estimated at this time.”
