Wednesday, November 03, 2021

Oh my.

Zillow to sell 7,000 homes for $2.8 billion after flipping flop. 

"Zillow Group is looking to sell about 7,000 homes as it seeks to recover from a fumble in its high-tech home-flipping business. 

The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter."

I don't know. This seems like a conflict of interest since Zillow basically tells everyone how much their house is worth. And now we know who's thumb has been on this very ridiculous scale. I'm sure they don't have any part in housing going up 20%YOY. I'm pretty sure this means there is a zero percent chance of them raising interest rates.

The article goes on to say....

"The move to offload a block of homes comes as Zillow seeks to recover from an operational stumble that saw it buy too many houses, with many now being listed for less than it paid. The company typically offers smaller numbers of homes to single-family landlords, but the current sales effort is much larger than normal."

Then, there is this fresh news from this morning.

Zillow to exit its home buying business, cut 25% of staff.


  1. Interesting. Are Opendoor, Blackstone, BlackRock and others also having difficulties or was this just incompetent implementation by Zillow? How could Zillow have not noticed this daily, too difficult to build a real estate data app comparing REO to market? Should Zillow have just held waiting for inflation? Time to buy a house on the dump? Time to buy Zillow on the dump?

  2. Sorry for my late reply. Judging from the MLS - it's going to be everyone. I've seen houses sit for 195 days. And while they might be a little overpriced, they are nice places. Pretty routine to see places sit for 30-100+ days