With slower sales and fewer listings, KW looks to training and coaching
Keller Williams' sales volume through the third quarter dropped 3% compared to the same period last year.
- In addition to the dip in sales volume, the company saw a drop in transactions, listings and new contracts compared to the red-hot market of 2021.
- The company rolled out new business lines to tackle what they see as emerging markets during this economic shift.
As Keller Williams navigates the real estate market slowdown, the company is moving forward with a series of initiatives to help its agents increase market share.
In its year-to-date report through the third quarter of 2022, KW reported sales volume of $381.4 billion in the U.S. and Canada, a 3% drop compared to the same period a year ago. The company fared better earlier in the year, with year-to-date sales volume up 1% at the end of Q2.
The company also reported a year-to-date decline in transactions (down 12.6%), new listings (down 7.7%) and new contracts written (down 4.7%) in the U.S. and Canada, underscoring the impact of climbing interest rates.
"While we are less than pleased to report our sales volume is down by a low single digit percentage year to date, there's immense opportunity in this market for our agents," said Marc King, president of Keller Williams Realty Inc. (KWRI) in a news release. "And, we are leaning into our powerful culture, training and technology to enable our agents to map a growth trajectory for their businesses based on the new math required by this market."
The company is gearing its training and coaching efforts toward increasing market share, said Sajag Patel, chief operating officer at KWRI. The company also launched four new business communities — KW Wealth, KW Relocation, KW Style to Design and Real Estate Planner — to tackle some emerging market segments.
King said 2021 was a "speed-based" real estate market, and agents need to adjust to what he called a "skill-based" market.
"Lead conversion rates from months back are no longer applicable to find those motivated to transact in this market," King said.
In an interview prior to the most recent earnings report, co-founder Gary Keller noted that the slowdown needed to happen to curb inflation and bring some balance back to the industry. He expects the market to bottom out in 2023, and from there, the industry will have opportunities to address the pent-up demand in the marketplace.
The company's global business, Keller Williams Worldwide, expanded over the past year and posted sales of $11.1 billion outside of the U.S. and Canada during the first three quarters of 2022 — a 29.8% increase compared to the same period in 2021.
Based in Austin, Texas, Keller Williams has more than 1,100 offices and 200,000 associates.
Write to Dave Gallagher.