CoStar Group’s Q3 Earnings Reports Record Traffic at Homes.com

1 Credits

Homes.com Shines in CoStar’s Q3 Earnings Report

CoStar Group, ticker symbol CSGP, has released its third-quarter earnings for 2024, showcasing a blend of resilience and challenges in a competitive market. Homes.com played a pivotal role in these results, driving significant traffic and revenue growth for the company. CoStar posted non-GAAP earnings of 22 cents per share, exceeding the Zacks Consensus Estimate by 37.5%, though this represents a notable 26.7% decline from the same quarter last year.

Total revenues reached $693 million, slightly missing estimates by 0.55%, yet marking a 10.9% year-over-year increase, with Homes.com making a substantial contribution. CoStar raised its 2024 revenue guidance based on these results, indicating confidence in future growth, partly due to the momentum from Homes.com.

In detail, CoStar’s real estate segment contributed 37.1% of total revenues, generating $257 million—beating expectations by 0.14% and growing 10.1% year-over-year. Notably, Apartments.com saw a 16% revenue increase year-over-year, while Homes.com recorded an impressive 168.9% year-over-year revenue increase, reaching $27.7 million. Homes.com also attracted a record 130 million unique visitors, a 17% rise compared to last year, with Homes.com alone hitting 85 million unique visitors—a 38% jump year-over-year.

Homes.com’s growth reflects CoStar’s strong position in the digital real estate market. Homes.com has quickly become a valuable asset in CoStar’s portfolio, attracting attention from advertisers and real estate professionals. Despite a 12.1% decline in stock value for CSGP this year, compared to a 26.9% rise in the broader tech sector, analysts remain optimistic about a rebound following the raised guidance for Q4, largely due to the success of Homes.com. CoStar anticipates revenues between $693 million and $703 million for the fourth quarter, signaling approximately 9% year-over-year growth at the midpoint, with Homes.com expected to continue driving traffic and engagement.

Additionally, CoStar experienced significant growth in its international markets, particularly in the U.K., where its residential portal—following a similar model to Homes.com—saw unique visitors surge by 348% year-over-year. Homes.com’s impact has resonated not only domestically but has inspired CoStar’s strategy abroad.

Homes.com has underscored CoStar’s adaptability and potential for future growth. As Homes.com strengthens its foothold, CoStar is well-positioned to capture an even greater share of the digital real estate market.

Source: Link

Fed’s Inflation Report Signals Stability

In today’s economic news, the Federal Reserve has released its latest inflation report, showing that price increases in September aligned closely with Wall Street expectations. The core Personal Consumption Expenditures, or PCE index, which excludes food and energy, rose by 0.3% from the previous month—an increase from August’s 0.1% rise.

On a yearly basis, PCE prices climbed 2.7%, slightly above the anticipated 2.6%. Overall, PCE inflation is at 2.1%, the slowest rate since February 2021. This report comes just a week ahead of the Fed’s upcoming policy decision, with markets expecting a strong chance of a 25 basis point interest rate cut on November 7.

Despite these inflationary trends, the U.S. economy remains resilient, growing at an annualized rate of 2.8% in the third quarter. This reflects a solid foundation as the Fed continues its interest rate easing strategy.

Looking forward, all eyes will be on the October jobs report, set to be released on tomorrow, with economists predicting around 101,000 jobs added—down from 254,000 in September.

Source: Link

ECOA’s Legacy: Women in Homeownership Today

And finally, this week we celebrate the 50th anniversary of the Equal Credit Opportunity Act, or ECOA. Signed into law by President Gerald Ford, it fundamentally changed the landscape of homeownership for women. Here’s how this pivotal legislation has empowered women to secure mortgages and achieve their homeownership dreams.

Before ECOA, women often faced discrimination when applying for loans, frequently needing a male co-signer despite having their own income and savings. The law eliminated such barriers, ensuring that women could apply for mortgages based solely on their financial qualifications.

Today, single women own 20.3 million homes, significantly outpacing single men, who own 14.9 million. 

In 2023, data revealed impressive numbers: single Black women reached 1.2 million homeowners, while single Hispanic females numbered over 710,000. 

ECOA also set the stage for fair lending practices by introducing standardized credit scoring. This shift means lenders evaluate applicants based on their creditworthiness, not on outdated biases tied to gender or marital status.

Source: Link

About “3 Things You Need to Know” on OnTrack Agent.

3 Things You Need to Know” delivers concise, no-nonsense real estate news, ensuring that agents stay informed and ahead of the curve.

Stripping away editorial commentary, the show focuses on the key developments shaping the real estate industry and the broader U.S. economy.

Whether it’s market trends, legislative changes, or economic shifts, each episode distills the most important information into easily digestible segments.

Designed specifically for real estate professionals, “3 Things You Need to Know” equips agents with the insights they need to make informed decisions and thrive in a competitive landscape.

Stay connected to the pulse of the industry with timely updates that matter each weekday, Monday through Friday.

3 Things You Need to Know – Copyright 2024 – OnTrack Agent

Buy Now

---