(Reuters) – Real estate information provider CoStar Group (NASDAQ:) trimmed its annual revenue forecast on Tuesday as high interest rates forced consumers to rethink property purchases in an uncertain economy, sending its shares down 8% in extended trading.
The Washington, D.C.-based company expects annual revenue between $2.445 billion and $2.450 billion, compared with its prior estimate of $2.45 billion to $2.46 billion.
Analysts on an average expect annual revenue of $2.46 billion, according to LSEG data.
Surging mortgage rates and a tight supply of homes for sale have reduced affordability for many first-time buyers.
Brokerage William Blair said last week its survey indicated low perception among real-estate agents on the value of paying for leads through home search portals because of factors including expensiveness and low lead quality.
CoStar also forecast current-quarter revenue between $630 million and $635 million, the mid-point of which was below market estimates of $644.3 million.
The company, which competes with home-listing service providers Zillow Group (NASDAQ:) and Redfin (NASDAQ:), posted revenue of $624.7 million for the quarter ended Sept. 30, missing estimates of $625.9 million.
Profit per share came in at 30 cents, unchanged from a year earlier.
Last week, CoStar said it had proposed to buy OnTheMarket, the UK’s third-largest residential real estate platform, for 1.10 pound per share in cash, or about 100 million pounds ($121.63 million).
($1 = 0.8222 pounds)