Given the rising demand for houses amid the low-interest-rate environment, the real estate services industry is expected to continue benefiting. So, established real estate services companies RE/MAX (RMAX) and Realogy (RLGY) should prosper for the foreseeable future. But which of these two stocks is a better buy now? Read more to find out.RE/MAX Holdings, Inc. (RMAX) operates internationally as a franchisor of real estate and mortgage brokerage services. The Denver, Colo.-based concern operates through three segments: Real Estate; Mortgage; and Marketing Funds. In comparison, Realogy Holdings Corp. (RLGY) provides residential real estate services through its subsidiaries. It operates through three segments: Realogy Franchise Group (NASDAQ:FRG); Realogy Brokerage Group; and Realogy Title Group. RLGY is based in Madison, N.J.
The continuing low-interest-rate environment and peoples' desire to move to improved living spaces have driven increased demand for real estate services over the past year. Furthermore, as travel restrictions are lifted on approximately 33 countries for vaccinated visitors, wealthy buyers from overseas are expected to descend on United States luxury housing markets, which could generate tens of billions of dollars in added sales. According to a SpendEdge report, the real estate agents and brokerage services market is expected to grow at a 4.8% CAGR by 2024. Therefore, both RMAX and RLGY should benefit.
RMAX shares have gained 0.9% in price over the past month, while RLGY's delivered negative returns. However, RLGY’s 41.7% gains over the past year are significantly higher than RMAX’s 0.5% returns. Moreover, RLGY is the clear winner with 37% gains versus RMAX’s negative returns in terms of year-to-date performance.