R
eal estate brands in the Franchise Times Top 400 saw a modest 0.1 % rise in sales last year, reaching $26.13 billion. The uptick was driven mainly by United Real Estate and Keller Williams Realty, whose sales grew 4.8 % and 1.4 % respectively. The other four top brands—Re/Max, Berkshire Hathaway HomeServices, United Country, and HomeVestors—experienced declines of 0.7 %, 0.4 %, 2.6 %, and 4 % respectively.
HomeVestors’ CEO, Larry Goodman, attributed the downturn to a mix of economic pressures. Higher mortgage rates—peaking at 7.22 % for the 30‑year fixed rate—reduced buyer affordability, while persistent inflation pushed construction and renovation costs up, squeezing profit margins. Freddie Mac reported the average 30‑year rate at 6.62 % in early 2024, ending the year at 6.85 %. New‑home construction fell 3.9 % to 1.36 million units, according to the National Association of Home Builders. These factors dampened consumer confidence, leading to slower home purchases and delayed seller decisions.
The National Association of Realtors noted that U.S. home sales dropped to 4.06 million in 2024, the lowest level since 1995. In response, Goodman highlighted HomeVestors’ strengths: a proven business model with over 150,000 homes sold, a 95 % customer satisfaction rating, robust support systems, advanced technology, and a vendor network that saves franchisees more than $10 million annually. He also pointed to opportunities in rentals and multi‑family properties, noting that the brand’s average sales price of $260,000 remains well below the national median of $440,000, sustaining demand for affordable homes.
United Real Estate’s president, Rick Haase, emphasized the company’s resilience amid market headwinds. Tracking 58 markets across 47 states, United outperformed the broader market in all but three areas. With 25,000 agents nationwide, the firm has doubled its investment in training, education, and re‑skill programs, covering topics such as adjustable‑rate mortgages and interest‑rate buy‑downs to enhance buyer affordability. Median home prices fell from $426,800 in Q1 2024 to $419,300 by year‑end, and further to $410,800 in Q2 2025. Haase sees the current slowdown as an opening for growth, noting that smaller firms lacking scale may seek mergers or acquisitions with United to strengthen their market position.
