Cendant Corp announced today that their income will be down from 200 to 400 million from previous projections due to the housing slowdown. They had projected revenue of 7.3 to 7.5 billion in their real estate division but now have revised the number down to 7.1 Billion dollars.
This is just another indicator that the real estate market is facing a slowdown. But that they are expecting sales volume of such a high number does not mean the industry is completely falling apart.
Citing “current trends and leading indicators” that point to a decline in sales of existing homes, Parsippany-based Cendant lowered revenue forecasts for its real estate division to $7.1 billion.
In earlier forecasts, Cendant projected 2006 revenue for the real estate division at $7.3 billion to $7.5 billion and EBITDA in a range of $1.09 billion to $1.14 billion.
The real estate division, which includes the Century 21 and Coldwell Banker brands, is scheduled to be spun off and renamed Realogy Corp. by the end of June as part of Cendant’s strategy to split into four companies.
The revision, Cendant said, is based on several recent reports, including a National Association of Realtors survey last week showing that sales of existing homes fell 2 percent in April as mortgage rates hit a four-year high. Cendant’s announcement comes on the heels of similar revisions by the nation’s biggest home builders.
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