Compass, one of the nation’s largest real estate brokerages, said its revenue and agent count jumped in the first quarter, but noted that tariffs have caused a slowdown in business.
On Thursday, the brokerage reported that in the three-month period ended March 31, its revenue increased 28.7% compared to the same period a year earlier. At the same time, its measure of agent count saw a nearly 42% increase.
A portion of that growth was driven by the brand’s acquisition campaign over the past 12 months. Earlier this year, for example, Compass completed a deal to acquire Chicago-based @properties Christie's International Real Estate. In February they announced the acquisition of one of the Washington, D.C.-area's top-producing luxury brokerages, Washington Fine Properties.
Robert Reffkin, Compass’ CEO and founder, said the brand expects that strategy will continue to fuel the company’s growth.
“While recent market trends have been somewhat mixed, we remain confident that our playbook and structural advantages position Compass to drive significant upside over time,” he said in a statement Thursday.
Tariffs prompt a ‘temporary loss’
The brokerage also reported that its transaction growth in the first quarter outpaced the national market. While Compass agents closed 27.8% more transactions compared to a year earlier, the national residential real estate market saw them fall 2.1%.
Despite Compass' growth, Reffkin noted that this spring’s tariff-induced volatility caused disruptions for the company and the industry.
“The talk of tariffs impacted March,” he told investors during a Thursday call to discuss Compass’ financial results. “The actual tariffs impacted April.”
Looking forward, Reffkin said he sees the rest of this year closely tracking with last year’s market growth, assuming there’s “stability in the markets and no more surprises like we saw with the talk of tariffs and the actual tariffs.”
“The loss was a temporary loss of transactions, not a permanent one,” he said. “It’s more of a deferral of demand, not an elimination of demand."