Home Depot at Institutional Investors Conference Notes

Kevin Hofmann – President of Online and the Chief Marketing Officer

55% of our marketing spend is now digital

“In this case – here we go, we’ll start with marketing. We’ve made a pivot, a significant pivot over the last few years towards more digital marketing. You might be surprised to know that a better part of 55% to 60% of all of the marketing that we deployed now is in the new media or digital world. Now, that doesn’t mean the old media world of TV and you’re getting an early view here of our Spring TV spot that’s playing in a few markets right now.

On the far left there, we still do a ton of TV. We still do a ton of traditional radio. There still is a place in the world for print advertising. But we’ve seen the customers’ behaviors change where everybody is spending their screen time, where everybody is doing dual screen watching when they’re at home. It’s changed dramatically and especially with the explosion of mobile. So, we’ve changed dramatically our marketing habits where we deploy our marketing spend.

So, as you can expect, the traditional world on the left, the digital world with both paid channels, very active with Google search terms, we manage over 18 million different keyword combinations with Google and partners like Google. We have a very, very active social media practice. We do a lot of retargeting for customers and are constantly looking at ways to make our marketing and advertising more personal, more contractually relevant for the customer and also more location aware. So, talking to you based off the weather patterns that you’re experiencing in your local neighborhood, those are all things that we have and we’ve deployed in our marketing spend.”

Contractors are adopting digital like everyone else

“–there is a theory out there that the contractor is a late bloomer when it comes to e-commerce and we actually don’t see that so much. Especially the millennial contractor, very, very much lives on their mobile device and so, heavy usage of interconnected tools for the millennial contractor. And then what we find is that if we just can get them exposed to it, they love it. When I mention the buy online, pick up and store, it’s one of the most delightful things we can introduce to a contractor. So, we’ve seen really, really nice uptake from the Pros.”

Home Depot 3Q16 Earnings Call Notes

The Home Depot’s (HD) CEO Craig Menear on Q3 2016 Results

Lifting guidance

“Turning to the macro environment, we believe home price appreciation, housing turnover, household formation and the aging housing stock in the U.S. continue to support growth in our business. As Carol will detail, we are reaffirming our sales growth and lifting our earnings per share growth guidance for the year.”

Don’t see any of the drivers changing in 2017

“obviously we’re not prepared to talk about ’17. We’ll do that on our next call. But what I would say is if you look at the drivers of growth, we don’t see significant change in the drivers of growth. We’ve had foundational GDP growth. We’ve had in housing home value appreciation, housing turnover, new household formation and then layer on top of that 65% of the housing stock in the U.S. is now in excess of 30 years old. All of those are drivers of business for us. There’s nothing that would indicate that we see that those would change. And as Carol said, there’s varying degrees of recovery amongst different parts of the country. So we don’t see anything on the horizon at this stage that would say anything should change in terms of the growth drivers in our business.”

The Pro is very strong

“I would say the Pro is very strong. One thing we saw this quarter is we’ve always talked about the high-spend Pro and the low-spend Pro. The low-spend Pro comp was on par with the high-spend Pro. So that’s nice to see not only geographical but the high and low spend are each comping at that stronger rate in consumer. And as we look across departments, virtually every department had higher Pro spend comp than consumer. So the Pro is strong across the business. We continue to be extremely pleased with our lumber, building material business. Our tool business in particular just continues to accelerate and we’re taking meaningful share in the tools business.”

Ted Decker

Strength in the DIY customer

“At the same time, we also saw strength with the DIY customer as they undertook various projects around the house. This project business drove strong comps in special order carpet, tool storage, laminate flooring and vanities. Weather remained favorable throughout the quarter and extended the outdoor project selling season.”

Carol Tome

Homeowners have seen a 95% increase in their home equity since 2011

“I think it’s important to just step back and look at where we are in terms of the cycle and focus on home price appreciation, because that’s a big driver of our business. Since 2011, homeowners have seen a 95% increase in their home equity. That’s come about because of rising prices as well as if you have a mortgage, you’ve been making mortgage payments since 2011. So homeowners really do view their home as an investment and not an expense. So the question is, okay, great, well what does it mean for 2017 and beyond? While we see home prices have recovered in certain parts of the country, there are other parts of the country where we are still double-digit down from peak. Those areas include Chicago and Atlanta. So in terms of where we are for the cycle, you can’t look at the averages because the averages will kill you. You have to look at the market. And when you look at the market, we see real opportunity for continued improvement”

Interest rates could rise a lot before mortgage payments hit high levels of income

“So we look at the affordability index, which is over 150%, so that’s good news. So now we went back and looked at, okay, historical percentages of household income used for mortgage payments. If you look at the years 1995 through 2000, 22% of homeowners’ income was used for their mortgage payment. It’s down now to about 14%. Interest rates could go up to 7% and no one is suggesting that will happen. But interest rates can go up to 7% and we would be back to about 22% of household income used for mortgage payment. So we got a long way to go before there’s any impact we think to our business from rising interest rates.”

Lowe’s 2Q15 Earnings Call Notes

4.3% comps despite challenging weather conditions in California and Texas

“Comparable sales grew 4.3%, primarily driven by a 3.3% increase in average ticket. We achieved this growth by executing well in a challenging environment that included an increasingly severe drought in California and historic flooding in Texas.”

Consumer sentiment survey shows strength

“And recovery in the housing market continues, with moderate home price appreciation, and stronger gains in housing turnover. We also continue to be encouraged by the results of our second quarter consumer sentiment survey. Roughly half of respondents indicated that they believe they’re home values are increasing; double the number from 2012. And this positive sentiment around home values is rooting through to spending patterns, with plans to begin a home improvement project in the next six months, continuing its recent upward trend.”

Strengthening affinity for home

“survey respondents indicated that growth in their home improvement spending is outpacing increases in their overall spending, suggesting a strengthening affinity for the home.”

More than 80% of customers start shopping for appliances online

“understanding that more than 80% of customers start shopping for appliances online, we have enhanced our presentation on Lowes.com, including improved product search, enhanced videos, improved presentation, like 360 degree views, and simplified product groupings. ”

Higher inventory reflects our commitment to in stock

“While inventory at quarter end was up 4% to last year, it reflects our commitment to be in stock for items that are most relevant to our customers. For instance, we ended the second quarter with higher levels of appliances to support exceptionally strong sales, as well as higher levels of portable air conditioning units and grills.”

Promotional environment is stable

“I will talk to the promotional environment. I would describe the promotional environment as stable. I would say in the second quarter, we targeted promotions largely at appliances of the big ticket categories with the intent to match the promotional intensity of the competition. So while our promotional intensity increased relative to the second quarter of last year, it was consistent with competitive environment. We expect that to abate in the second half of the year as we wrap — when we started to increase our promotional intensity last year, which is around Labor Day.”

Pros value brands, availability, assortment and localization

“When we talk to Pros — and this is in no particular order, but brands certainly are important to them. Inventory depth is very, very important to them. Breath of assortments so they can go one place and complete the job is important. And, localization is equally as critical. There are local norms and building codes that we got to get right. We deployed a field-based merchandizing team to help ensure that we get better localization. ‘

Wonky discussion on working capital

“So accounts payable is up 15% year-over-year, primarily related to timing of purchases. At quarter, we also saw roughly a 2.5 day improvement in days payable outstanding. The merchants teams has been working really hard to evaluate today’s inventory in hand relative to today’s payable, and try to get better coverage there. That’s something that has been reignited of late. We saw about a day improvement last year. We want to have roughly a day and half or two day improvement this year.”

Home Depot 2Q15 Earnings Call Notes

Online sales +25% led by BOPUS and BOSS

“‘We had another quarter of strong growth in our digital assets with dotcom sales growing approximately 25%, led by online orders picked up in the store through Buy Online, Pick Up In Store, BOPUS; and Buy Online, Ship to Store, BOSS. At the same time, our operations team remains focused on improving the interconnected customer experience in the store. And as a result, we saw another quarter of year-over-year improvement in customer satisfaction scores for our BOPUS and BOSS offerings in the second quarter.”

Increasing sales and EPS guidance

‘We’re pleased with the performance in the first half of the year, and while 2015 consensus U.S. GDP growth projections are moderate, housing data remains supportive of the continued growth in home improvement industry. As Carol will detail, we are increasing our sales and earnings per share guidance for the year to reflect the outperformance of the quarter and the expected benefit from the anticipated completion of the Interline acquisition in the third quarter.”

Weather impacts to outdoor categories

“Outdoor project categories like soils and mulch, live goods and fertilizers were pressured during the quarter specifically from weather that impacted certain areas of the country like the drought in California and record rainfall in parts of Texas and the Midwest.”

Sales per sqft were $420

“Total sales per square foot for the second quarter were $420, up 4.1% from last year.”

Continue to see positive signs in the housing market

“we continue to see positive signs in the housing market. Home prices continue to appreciate and housing turnover and household formation are now slightly ahead of the assumptions we use to build our plan.

See stores as extension of distribution capabilities

“in addition to the three direct fulfillment centers, we have 2,000 stores that are conveniently located, and we’re working on delivery capability from the stores. So we look at the stores to really be the expedited capability to put product in the hands of customers.”

Drought leading to change in merchandise in affected areas

“What we’re doing in the live goods category specific, we’ve definitely shifted the assortment into water-tolerant or drought-tolerant species, so a lot more cactus and succulents. We’re also diminishing the size of live goods in a number of stores and expanding pavers and the like, as we see people definitely taking grass, diminishing the size of their lawn, and putting in more pavers and succulents.”

People act differently when they see their home as an investment not an expense

“We get a little bit from the economy too. Home price appreciation continues to progress nicely, prices are up 4% and as we talked about, when consumers believe their home as an investment and not an expense, they spend differently and we’re seeing that spend pattern.”

Not seeing any regional differences that inform shape of housing recovery

“we’re not seeing any regional differences that really help us inform the shape of the housing recovery”

1.6m households were formed in 2Q

“1.6 million households were formed in the second quarter. This is something that we have been hoping for. Now, not all those households are going into single-family units. They’re going into rental units, but that’s okay because we can serve those rental units. It’s really interesting to note that of the 135 million housing units in the United States, 44 million of those are rental units; and of those, 13 million are single-family homes.”

We look at wage on a market by market basis

“We look at wage obviously on a market-by-market basis. We are constantly and have been for years adjusting based on the market dynamics. We’ve made thousands and thousands of adjustments this year, as we would in previous years. We pride ourselves on trying to make sure that we have compensation overall that is above market, and that’s something that we will continue to focus to do. But clearly, there are markets where we’ve had to make adjustments, and we’ve done so.”

Ad spend flat but shifting from print to digital

“So our ad spend is pretty flat year over year. And we have been for numerous years now in an effort to shift our spend to new mediums and platforms. As an example, if you step back, several years ago we had on average over 50 print pieces that hit the street in a year. I think this year we’ll do something like 11. So we’ve made a pretty hard shift to new platforms in the digital space.”

Zillow 2Q15 Earnings Call Notes

CFO going to a biotech company

“I want to start by thanking our outgoing CFO, Chad Cohen, for his nine years of contributions to Zillow, and I wish him all the best in his new role as CFO at a Life Sciences biotech company.”

Zillow is 32nd largest web property in the US

“Our Zillow audience continues to grow and our advertising is working. Not only did the Zillow brand alone represent nearly half of the real estate category in market share of visitors, but Zillow Group now represents the 32nd largest web property in America.”

Dual share class

“Last week, we announced that we’ll execute a change in our capital structure related to our long-term focus. Later this month, we will issue a class of non-voting Class C stock that our shareholders approved last December. Each Zillow Group holder of Class A or Class B shares will receive two Class C shares, basically a three-way stocks split. C shares will trade under the symbol Z, and A shares will trade under the symbol ZG. For Zillow Group extending our dual class structure through the issuance of C shares allows us to continue our focus on long-term growth and innovation.”

Some agents spending 60k per year

“If you just do some napkin math on someone spending $5,000 a month, they’re probably – they’re spending $60,000 a year, they’re probably generating $600,000 a year in commissions from us, they’re probably doing about 100 signs (37:09) a year. So, that’s not an individual agent, right? That’s probably one agent – one agent’s credit card standing in front of four or five other agents on that agents’ team, maybe as many as 5 or 10.

So, it’s very hard for us to tell, what the right TAM is of the total number of agent advertisers and quite frankly, we don’t really care all that much. What we do know is that, we’re at $456 million annualized of Premier Agent revenue and a year ago, we were at $349 million of Premier Agent revenue annualized. So the way I look at it is we have 72% share of mobile only visitors and agent spend $456 million a year advertising, in front of the company that has 72% mobile share.”

Freddie Mac 2Q15 Earnings Call Notes

Reducing our risk

“I’ll switch gears now and update you on our progress to build the better Freddie Mac. In particular, our progress in reducing risk in our ongoing business activities is one of the most important things that we’re doing in conservatorship. And we’re doing it in a way that is good for tax payers, good for the financial system as a whol”

By creating new asset classes to transfer risk

“We’re doing this of course by creating new asset classes to transfer large amounts of mortgage credit risk to the private market and doing so, in a taxpayer friendly manner.”

ACIS

“I’m proud to say that we were the first to market the most successful structures that do this. They are the key deals from multifamily, stacker bonds for single family and also our ACIS reinsurance transactions for single family.”

Also sold 4.3B of investment portfolio assets during the quarter

“Innovation is also visible in a way we are responsibly winding down the retained investment portfolio. As you know, our focus is on reducing less liquid assets, which are mainly impaired mortgage asset. We sold another $4.3 billion of such assets in the second quarter, which included $900 million of non-performing that is NPL sales. ”

97% LTV product for underserved borrowers

“We’ve increased our focus on underserved, home buyers and communities. We have a new executive heading up single-family’s effort to strengthen affordable lending opportunities. This includes as, but one example, new initiatives to help keep housing finance agencies, fund mortgages for underserved borrowers with our 3% down Home Possible Advantage mortgage.”

Home Depot 1Q15 Earnings Call Notes

A more normal spring. Strength across the country

“We saw a more normal spring across much of the country in the first quarter. All three of our U.S. divisions posted mid-single-digit comps or higher, our Western division was our best performing division with strength in key markets, including San Francisco, Sacramento, Colorado and Seattle. All 19 of our U.S. regions saw positive comp growth in the quarter. Both tickets and transactions grew during the quarter with particular strength in transaction growth.’

GDP growth was slow but housing remains positive

“While it’s early in the year, our view of the macro environment has not changed much. The U.S. GDP growth was below consensus estimates for the first quarter, but housing data remains positive and supportive of the housing recovery, and the growth that we see in our business also supports the view of a continued recovery in the U.S. housing market.’

Plenty of strength in big ticket items

“I would say that we’re seeing really strength across many departments, water heaters, appliances, our tools, riding mowers, walks, all of our outdoor garden categories, grills, et cetera had just a terrific quarter and those wouldn’t be Pro-focused items.”

Have a customer with a higher average home price than the national average

“Since 2009 spending in high income households has grown faster than low income households, driven in part by higher end homes recovering faster than lower end homes, and when we say higher end homes, we are talking of homes of $200,000 and up. Interestingly as we look at our consumer base, over 50% of our customers have homes of $200,000 or more, and you compare that to the national average, which is more like 40%, so we think just the nature of our customer base is helping drive this big ticket growth.”

Interest rate increases shouldn’t have an effect on our business

“The analysis would suggest that interest rates, and these would be mortgage interest rates, could rise 200 basis points and the Affordability Index would still be north of 100%. So even in the face of potentially higher rates and who knows when that might occur, but even in the face of potentially higher rates, we don’t see any near-term pressure on our business. And in fact, to your point, that could suggest a little inflation in the economy and that would be a good thing.’

Q1 will be the easiest comp for the year

“We still expect the first quarter to be the best quarter and that the halves to be similar.”

Nearly 1/3 of 18-34 year olds live with parents

“it looks like there’ll be 1 million households formed this year, which should be awesome. In fact I’m always fascinated by this statistic. If you look at people between the ages 18 and 34, nearly a third of them are at home with their parents. And if they were all to leave their home nest, like my nephew just did, thank goodness, that’s 4 million households that would be created. So I’m just really excited about what the future may be for our business.”

Not forecasting an improvement in commodities

“we’re not forecasting an improvement against commodities, copper prices and lumber prices are down meaningfully on next year and we’re anticipating it staying as is.”

Inventory is light thanks to west coast ports

“the West Coast ports have been a very challenging situation for us. The team hI would say that’s a tough one to call out. There is the theory of the case that in some cases there was a delayed spend. Clearly during the economic downturn and people focused strictly on maintenance of their homes. If you recall our maintenance categories were strong throughout the economic downturn. And when a home moves to a positive growth in terms of value, what was once an expense now becomes potentially an investment.ere has done a great job in terms of working together to mitigate the issues there. Having said that, we have had negative impact on our in-stock, particularly for our direct import items, but we’ve also seen some hits to our fill rates from vendors, and that has led to lower in-stock than we would like to see. So our inventory probably is a little lower than we would like it to be given where it’s at” sv

No sign of impact on texas

We have 178 stores in the State of Texas. We’ve seen no visible impact whatsoever in that State at this point. Matter of fact all our major markets in that State posted mid-single-digit comps. It’s something that we’re keeping our eyes on very closely and we’ll adjust accordingly if need be, but have not seen it at this point.”

Can’t really explain why people are shifting dollars to home goods

“I would say that’s a tough one to call out. There is the theory of the case that in some cases there was a delayed spend. Clearly during the economic downturn and people focused strictly on maintenance of their homes. If you recall our maintenance categories were strong throughout the economic downturn. And when a home moves to a positive growth in terms of value, what was once an expense now becomes potentially an investment.’

Zillow 1Q15 Earnings Call Notes

Looking for adjusted EBITDA of 80-85m

“Our first quarter financial results on a pro forma basis show revenue of nearly $163 million and adjusted EBITDA of almost $25 million. We are right on track to reach our stated pro forma operating goals for full year 2015 of $690 million in revenue and $80 million to $85 million in EBITDA.”

A media model

“Moving now to our second strategic priority, growing our audience. As I have said many times before, in a media model, we believe that advertisers follow audience. Our four leading consumer brands represent by far, the largest audience in real estate, rentals and mortgages, both on mobile and web”

Apple watch app

“The most recent product innovations for both Zillow and Trulia brands were our Apple Watch apps. In these apps consumers can receive notifications about new properties that come on market, scroll through photos, see local info, and examine property data.”

140m unique users is obviously not a real number

“At a 140 million in use we’ve probably already past the point where it makes sense to think about that number as a real metric, in a sense that it’s such an abstract number, we all know people have multiple devices; we know that people use multiple brands. And so it’s quite abstract. We use it as a benchmark to show the size of our audience and our huge scale which really dwarfs any other competitor in the category.”

Audience is abstract, but TAM is not

“So, I mean, you’re right in my characterization of audience as something abstract and hard to wrap your mind around. The total dollars of agent advertising of between $10 billion and $13 billion, is a number that I feel pretty good about because it — I feel excellent about the 60 billion to 70 billion in total commission number. That estimate I think is fairly solid and well accepted and it’s pretty well accepted rule of thumb that agents spend between 10% and 20% of their commissions on advertising. So, I do believe that agents probably spend about $10 billion a year on advertising. And so, I feel solid in that TAM.”

We spend a lot of time trying to debate how to provide investors with transparency

“In terms of metrics, I’m laughing because this is something that we’ve spent a lot of time internally trying to bid debate and trying to figure out how best to provide investors with transparency and an ability to model.”

We haven’t found the right metrics yet

“I don’t think we’d really found the right — the sort of perfect metrics which give investors transparency but don’t give competitors too much information and that helps outsiders understand the health of the business.’

(in response to analyst question on TAM) TAM grows as your provide value

“if you try to evaluate in the year 2000, how much revenue Google would have in a given vertical, you would probably looked at yellow page advertising and reached exactly the wrong conclusion. And when Google advertiser thinks about their standards and making money on the margin. So, as long as we provide any positive ROI, the TAM is infinite in theory, because the agents continue to buy money. And the agent that is a Zillow advertiser is a professional business person that has a team and uses a software and investing in our business and spending money to make money.”

Lowes 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Positive comps across the board

“We had positive comps in all 12 product categories with particular strength in fashion fixtures, kitchen and appliances, millwork, and outdoor power equipment. Sales across the country were balanced as well with all three divisions – the north, south and west – all generating comps in the mid-single digits. In fact, all 14 regions had positive comps.”

Positive read on the economy

“We’re pleased with our performance in the third quarter and continue to be cautiously optimistic about the home improvement landscape. Disposable personal income and revolving credit usage, which are key drivers of discretionary consumer spending, appear to be improving above the relatively weak trends experienced during most of the recovery to date, and the consumer is also benefiting from lower interest rates and falling fuel prices. Existing home sales remain on a modest up-trend. In the latest reading on the broadest measure of home price growth, FHFA, improved modestly from last quarter, suggesting home price appreciation in small to midsized markets continues, which bodes well for consumers in Lowe’s footprint.”

Confidence in housing markets increased to pre-recession highs

“the results of our third quarter consumer sentiment survey, which revealed that homeowners’ views around personal finances and home values continue to improve. In fact, confidence in both local and national housing markets increased to pre-recession highs this quarter.”

The environment is a lot different from 2005

“hen we think about comparing the business all the way back to 2005, certainly it’s a dramatically different environment today, went from the overall macro environment, how strong housing was back then [indiscernible] into this whole omni channel world that we’re in today”

You’re not going to be relevant if you don’t have a website that is function and feasible

“from a technology and a customer expectation standpoint, I don’t think you’re going to be relevant if you don’t have a website that, one, is functional and feasible from the consumers’ standpoint, but also well connected to your other channels of business.”

We’re off to a great start in Q4

“”we’re off to a great start. In fact, we’re very impressed with our results thus far, but it’s still very early in the quarter and there is weather risk in January, so at this point we’re comfortable with the guidance we provided thus far.”

It’s all starting to come together for us

” think we see a lot of bounce in people’s steps with a lot of initiatives that we’ve been working on. There’s been a lot of heavy lifting over the past couple years, all the way across the organization, both in stores and in corporate offices. We repositioned the company to more of an omni channel environment, made some great strides and great improvements. It’s starting to come together, and you are seeing a lot of bounce in people’s steps and a lot of wanting to deliver even better performance in the future.”

Zillow 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Revenue outlook 322m

“Due to our strong second quarter results and record bookings, we are increasing our total revenue outlook from $306 million to $322 million at the midpoint of the range for 2014 and also increasing our EBITDA outlook from $49 million to $53 million at the midpoint, which we’ll discuss further in a moment.”

Mobile 2/3 of usage

“we just set a new high-water mark in our mobile traffic. Mobile continues to represent about 2/3 of our usage. In July, more than 0.5 billion homes were viewed on Zillow from a mobile device.”

57k agent-advertisers

“We ended the quarter with nearly 57,000 Premier Agent advertisers, and the virtuous cycle around the Premier Agent business has resulted in a current annualized run rate of $218 million for our Premier Agent revenue compared to $124 million at this time last year.”

$9 B total market opportunity

“our growth and run rate, we still only represent a tiny fraction of the addressable market for real estate advertising. Of the $27 billion spent annually by the category that Borrell research identifies, approximately $9 billion is spent on advertising by residential real state agents, brokerages and homebuilders.”

81m average monthly unique users

” we again had record usage in the second quarter, attracting over 81 million average monthly unique users to Zillow’s mobile applications and websites, representing growth of 49% year-over-year on a large user base.”

Agents spending 320/month on average

“Premier Agent monthly average revenue per agent, or ARPA, set a new record in the second quarter at $320, 20% higher than the figure in the same period last year and 12% higher sequentially, a doubling of respective growth rates compared to the first quarter of 2014.”

refi boom clearly over, purchase business struggling

“I mean, the mortgage refi boom is over, clearly. Those that have equity or had equity in their home have already refinanced. And so Zillow is — Zillow’s business for — mortgage business for the last couple of years has been more focused on purchase loans because it’s tied to a real estate site, but even the purchase business is challenged.”

With exception of SF and NYC, national real estate market has slowed

” the Bay Area and Manhattan are 2 areas that — where trees seem to only grow to the sky. It doesn’t mean that they’re bubbalicious [ph], it — necessarily, it just means that it just keeps going up, up, up. And that — what’s happening there is, of course, the local economy in the Bay Area is supported by the tech community and the local economy in Manhattan, supported by the finance community and also foreign European and Middle Eastern buyers. And Eastern European buyers are supporting these 2 high-end markets up and up and up. But the nationwide number is that home values are increasing around 5% year-over-year, and we forecast that has slowed to about 3% to 4% year-over-year. So nationwide, the real estate market has basically cooled and returned to a normal — a more normal state, with a couple of exceptions, notably in New York and San Francisco.”

Agents on the platform spending more

“Agents that were here a year ago, agents that are on today that were here a year ago, spending 62% more in this period than they were this time last year.”