According to The Wall Street Journal Zillow lost 881 million dollars in 2021 on their home flipping business. Personally, I did sell one of the Zillow owned homes and my buyer paid less than Zillow bought it for plus you figure closing cost, commissions and other expenses it is easy to see how each sale can mean tens of thousands in losses, my buyer was happy!
Not to be outdone Opendoor recorded 928 million in losses a few days ago, Redfin announced a 13% layoff which is a 27% reduction since April. They will be announcing 3rd quarterly earnings next week. Compass announced GAAP 3 quarter loss of 154 million compared to losses of 100 million 3 quarter of 2021.
Some of the major franchises are also downsizing in July REMAX quietly lays off 17% of its workforce. A recent article in Insider released a list of 44 real estate firms that are reducing their labor force.
Personally, I like to stay up with trends and directions of the market, we are getting more and more questions about the market it helps to know the details. Oh, and the sky is not falling!
Dick Betts, REALTOR®
The Betts Team
Touchstone Real Estate
The Villages, Florida
717-860-3107 cell
Dick@DickBetts.com
Comments(17)