Silicon Valley Realtor
SamShuehRealtor at Gmail.com
"Zillow’s iBuying division hit a stumbling block in recent weeks as the company paused buying new homes, citing a “labor- and supply-constrained economy inside a competitive real estate market.”
The result: Zillow faced selling homes at a loss. Analysts who reviewed 650 of Zillow’s more than 3,142 homes found that two-thirds of them were listed for less than Zillow paid to buy them, with an average markdown of 4.5%, according to an Oct. 31 analysis from Ed Yruma, managing director at KeyBanc Capital Markets.
In its third-quarter earnings announced Tuesday, Zillow wrote down about $304 million worth of homes it purchased and expected to sell at a loss. The company said it expects additional losses of $240 million to $265 million in the fourth quarter.
Zillow Offers does not buy and sell homes in Seattle but is active in Portland. Tucson, Mesa and Phoenix saw the steepest markdowns, Yruma found."