Excluding one-off costs, the underlying profit was $6.4 million.

Revenue rose 7 per cent to $129.5 million, boosted by the addition of 15 offices, three company-owned in NSW and 12 franchises in NSW and Victoria.

Overall, the average decline in listings was 11 per cent for the year, although McGrath said there had been a reversal in the past six to eight weeks. Overseas investor interest had come off marginally due to capital tightening in China, but McGrath did not expect any dramatic declines.

"Notwithstanding the challenging market environment, particularly as a result of the low volume of listings and sales throughout the financial year, and the loss of a number of high-performing sales agents in the 'company-owned' segment in December 2016 and January 2017, the strength of the business model saw us deliver $15.6 million earnings before interest, tax, depreciation and amortisation," chief executive Cameron Judson said.

He said the market remained challenging and the rate of price growth was in the single digits. But since balance date, "there has been a stabilisation in house values, which has been good for listings".

The suggestion that banks will soon be comfortably meeting the regulator's cap on interest-only mortgage lending, and could partially unwind some of the tighter credit conditions being felt by many property investors, will be welcomed by real estate agents.

Mortgage Choice, one of the country's biggest mortgage brokers, on Thursday said that almost six months after the Australian Prudential Regulation Authority told banks to put the brakes on interest-only home lending, the slowdown in this part of the market meant banks would meet the 30 per cent cap on new interest-only lending by the end of next month.

Big banks have slowed interest-only lending by raising rates for these types of loans by about 0.6 percentage points, and requiring new customers to stump up bigger deposits.

But Mortgage Choice chief executive John Flavell on Thursday predicted banks' recent tightening of credit policies, and moves to charge interest-only customers a higher premium on their loans, were coming to an end.

That was because the changes announced so far should allow banks to comply with the 30 per cent cap, and banks might even start to ease up on the tighter conditions in the interest-only market.

"My feeling is there's room to kind of wind some of that back a little bit," he said at the broker's financial results. "APRA will get their cap - there's no doubt about that."

In the year to June, Mortgage Choice's profit rose 10.2 per cent to $22.6 million, and it said the growing complexity of the home loan market was driving more people towards mortgage brokers.

Balance sheet strength

McGrath has employed Chris Mourd, formerly from LJ Hooker, and Adrian Wilson to boost its company-owned business' listings and operations. The more profitable divisions for this year were the McGrath franchises, property management and Oxygen loans, which has $2.7 billion of loans under management.

To help underpin the share price, the group will undertake a share buyback from September 8. McGrath said the number of shares bought back and timing of any purchases would depend on its share price and other market factors.

Mr Judson said with $8 million cash, no bank debt, and net assets of $98.7 million, McGrath's balance sheet was "in a solid position to support its strategy".

"We continue to take a disciplined approach to investment in the business to build long-term shareholder value," he said.

McGrath group listed in December 2015, but it has been a rocky road ever since.

The stock had an offer price of $2.10 but never reached those heights, peaking at $1.89 in the days after it listed. Following an earnings downgrade by the company in April 2016 due to falling home sale listings, the share price plunged 30 per cent in one day to 90??.

In August last year, John McGrath, dubbed "Mr Sydney Real Estate", stepped down as chief executive of the group he founded in 1988. He is now an executive director with Mr Judson.

Earlier this year, Mr McGrath dismissed concerns of a property "bubble", saying he has seen such talk "time and time again over 30 years and the 'doom and gloom' predictions simply haven't eventuated".

McGrath has issued a 1?? final dividend.