The Real Brokerage Inc. (NASDAQ:REAX) Q3 2022 Earnings Conference Call November 10, 2022 11:00 AM ET

Company Participants

Jason Lee - Vice President-Capital Markets & Investor Relations

Tamir Poleg - Chairman & Chief Executive Officer

Michelle Ressler - Chief Financial Officer

Conference Call Participants

Darren Aftahi - ROTH Capital Partners

David Marsh - Singular Research

Tom White - D.A. Davidson

Peter Sidoti - Sidoti & Company

Operator

Good morning, ladies and gentlemen and welcome to The Real Brokerage Third Quarter Earnings Call. At this time, all participants have been placed on a listen-only mode, and we’ll open the floor for your questions and comments after the presentation.

I will now turn the call over to Jason Lee, Vice President of Capital Markets and Investor Relations at Real Brokerage. Sir, the floor is yours.

Jason Lee

Good morning, everyone and thank you for joining us today for Real’s third quarter 2022 earnings call. With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer and Michelle Ressler, our Chief Financial Officer. This morning, Real filed its financial results as well as its management’s discussion and analysis for the third quarter ended in September 30, 2022 on SEDAR and EDGAR. These documents, along with the accompanying press release can be found on both SEDAR and EDGAR.

Before I turn the call over to Tamir, I would like to remind everyone that the company may make statements about its future results and other forward-looking statements during this call. Our actual results may differ materially from these forward-looking statements and the risk factors that could cause these differences are detailed in our Canadian continuous disclosure documents and SEC reports. Real disclaims any intent or obligation to update these forward-looking statements except as expressly required by law.

Now, with that, I would like to turn the call over to Chairman and Chief Executive Officer, Tamir Poleg. Tamir, please proceed.

Tamir Poleg

Good morning, and thank you, Jason. Q3 was a challenging period for the housing market broadly. During the quarter, the number of residential transactions in the US fell by 11% and the median home sales price moderated by approximately 5% compared to Q2 '22. In Canada, a market in which we continue to see significant growth, volumes and price fell by 14% and 10%, respectively, compared to the prior quarter. Meanwhile, mortgage rates climbed throughout the quarter, exceeding 7% in October for the first time since 2001, which is weighing on current affordability and new transaction volumes.