After a strong first quarter, 2022 sales began to decline in response to a series of interest rate hikes – from 0.25% to 4.25% in less than nine months – and low inventory levels. Total sales volume closed out the year at 15,273 a decrease of 45% from 2021’s record-setting 27,692 sales. 2022 new listings also fell, from 35,629 to 32,442. The market swing could have had a much greater impact on our financial picture were it not for well-timed decisions and responsible fiscal management, which has put us in good financial health.
Revenues came in at $12.02 million, a surplus of $597,320 over expenses for the year. We were able to end the year in a surplus position despite the market downturn due to the Board of Directors’ foresight to approve an increase in non-member success fees. Implemented on March 1, 2022, the move brought in an additional $800,000 in revenues and helped us avoid a potential deficit position of approximately $200,000. Once market stability is restored, the impact of this decision will be felt into perpetuity of up to approximately $1.2 million annually. Other revenue factors included
Vice President & Chair, Finance Committee
JEFF CHADHA
-Higher revenues from membership dues and fees as a result of an increase in membership. We ended 2022 with 4,895 members, which brought an additional $618,902 to revenues.
-Reduced MLS fees and Success fees by approximately $900,000 from 2021. Without the increase in non-member success fees, the decrease would have been closer to $1.7M.
-Lower Listing fees revenues by approximately $120,000 due to fewer listings overall last year.
-Education seminar fees were up by about $114,000 as more courses were delivered in 2022
Our balance sheet is strong with total assets at $15.6 million and total liabilities at $1.3 million. Unrestricted Net Assets increased from 2021 levels by $597,320 to $5,251,338 while the internally restricted net assets have remained the same at approximately $9 million.
We are grateful for the groundwork laid by previous Boards of Directors that allowed us to implement the non-member success fee policy. The significant boost to revenues finds us well-positioned to continue to support our key strategic initiatives in 2023 and beyond, including our digital transformation strategy.