Zillow just stopped flipping homes after scooping up thousands of properties over three years. Here's what happened.
If you've been paying attention to real-estate news lately, you may be asking yourself some version of this question: What the heck is happening at Zillow?
The news is the latest in an abrupt turn of fortune for the Seattle-based company's iBuying service. The move is sure to have ripple effects for housing markets across the U.S., as Zillow has purchased thousands of homes through its Zillow Offers program.
After two tumultuous weeks — during which an Insider analysis revealed that of the nearly 1,000 homes Zillow recently listed for sale in its five biggest markets, 64% were being marketed for less than the company originally paid for them — that pause turned into the complete shuttering of Zillow Offers.
The "wind down" of Zillow Offers was announced after the market close on Tuesday, when Zillow's share price dropped about 12%.
Okay, so what happened with Zillow?
This story really starts in 2018, when Zillow got into the then-nascent instant buying, or "iBuying," business. iBuying refers to the process in which deep-pocketed, tech-enabled companies buy up homes, complete light renovations, and then sell them for a gain.
Full article at : https://www.businessinsider.com/ibuyer-defunct-why-did-zillow-stop-buying-houses-2021-11
Comments (0)Subscribe to CommentsComment