A relative newcomer to the industry, the Real Brokerage is growing fast and is one of the few brokerages to materially grow its transaction count in 2022.

Why it matters: In a notoriously slow moving industry, it’s worth tracking the fast movers.

Dig deeper: Real was a big winner in 2022, with its transaction count increasing by 181 percent – 24,000 units – compared to an overall industry decline of 18 percent.

• On a unit basis, Real was second only to eXp Realty in terms of its growth.

Like other growing brokerages, the surge was fueled by agent recruitment: Real’s agent count increased 113 percent to 8,200 agents in 2022 (and has since exceeded 10k).

• Agent count is the most reliable indicator that correlates to transaction count growth.

Cash flow: There is chatter about Real’s profitability and ability to sustain itself.

• During 2022, Real’s cash balance fell from $29 million to $18 million – but that drop includes $10 million in acquisition-related expenses.
   

• Outside of acquisitions, the company appears to be close to cash-flow positive.

What to watch: As we’ve seen with other brokerages, the momentum of Real’s agent recruitment will likely propel the business to continued growth in 2023.

The bottom line: It’s difficult to look at Real and not think of eXp Realty – both companies have similarly favorable agent commission splits and multi-level revenue share schemes.

• And while future performance is uncertain, Real appears to be in the early stages of an exponential growth phase, driven by strong agent recruitment.
   

• A receding tide reveals winners and losers in the brokerage space: The Real Brokerage is on the winning side of the ledger, growing quickly and at an increasingly meaningful scale.

Note: I’ve had coffee with Real’s CTO, but I have no financial stake nor association with Real Brokerage. I’m just looking at the data – and it’s difficult to ignore a fast-moving business in a slow-moving industry.