Zillow Getting Out Of Home-Flipping Business
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On October 18, 2021, the real estate platform Zillow announced that its home-flipping business, Zillow Offers, will be taking a break from signing new contracts as the company addresses a backlog of its properties still in its renovation pipeline. Since this announcement, Zillow shares took a hit, falling as much as 11.4% in early trading on Monday, according to Reuters.
After expanding into the home-flipping business in 2018 through its Zillow Offers unit, Zillow acquired more than 3,800 homes in the second quarter, according to Wall Street Journal.
Zillow’s chief operating officer, Jeremy Wacksman, said in a statement, “We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces. We now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”
Zillow is no longer flipping homes due to labor and supply shortages, and its inability to renovate and flip houses fast enough. Rich Barton, Zillow CEO, joins ‘Closing Bell’ to discuss, in the video published on Nov 2, 2021, “Zillow CEO on getting out of the home-flipping business“, below:
Zillow announced a $328 million dollar 3rd quarter loss today. Zillow lost $380 million in their home flipping business and will be shutting it down permanently. Along with closing Zillow Offers, they will layoff 25% of their workforce, in the video published on Nov 2, 2021, “ZILLOW Loses $380 MILLION Flipping Homes, 25% Layoffs Announced“, below:
Zillow, the digital real estate company, said on Tuesday that it’s exiting Offers, its business that buys and flips homes, and eliminating 25% of its workforce, in the video published on Nov 3, 2021, “Zillow’s Home Flipping Business Made No Sense“, below:
Evercore ISI’s Mark Mahaney downgrades Zillow stock to hold after flipping report failure. With CNBC’s Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Steve Grasso, in the video published on Nov 3, 2021, “Top analyst on what’s next for Zillow after home flipping disaster“, below:
US HOUSING CRASH WARNING! Real Estate stocks like Zillow and Opendoor experienced HUGE declines in price today. And now Zillow is laying off 25% of its workforce, in the video published on Nov 2, 2021, “Real Estate Stocks are CRASHING (-15% TODAY). Home Prices NEXT!” below:
This is what Louis Rossmann has to say on the subject, in the video published on Nov 2, 2021, “Zillow SHUTS DOWN home flipping business; GOOD!” below:
The housing market is hot, and real estate marketplace sites like Zillow along with other so-called iBuyers have been contributing by buying up more Valley properties than ever before, in the video published on Nov 2, 2021, “‘iBuyers’ are selling Arizona homes for a loss. Buy why?” below:
Zillow plans to halt new acquisitions for at least the rest of 2021, but would continue purchasing homes that have already signed contracts but have not yet closed. Zillow also said that it would connect perspective sellers from Zillow Offers with a local Premier Agent partner, presenting an opportunity for agents in markets where iBuyers such as Zillow have been most active, according to Jennifer Wehner, CEO of the Wehner Group with eXp Realty in Arizona
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker More about the community at www.WindermereSun.com
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