Skip to content

MSDLISTS

Broadcast The Lastest News

  • News
  • Shop
    • Orders
  • Business
  • Technology
  • Sport
  • Privacy Policy
  • T & C
  • Contact
  • Toggle search form
  • Kids dressing up for Halloween is ‘complete betrayal of Christian faith’, says priest News
  • David Miller’s two late sixes take South Africa past Sri Lanka in thriller Sport
  • Husband tells wife he’ll never forgive her if she gives birth via a water birth News
  • Ryanair plans to drop London listing as trading volumes fall post-Brexit Business
  • Ethiopian textile industry at risk if U.S. suspends trade deal over Tigray war Business
  • Epstein links catch up with Barclays chief Staley Business
  • Women’s FA Cup: Manchester City relishing chance of a Wembley final Sport
  • Police officers return to patrol car and find surprise note stuck to window News

Zillow buys too many houses, now looking to offload 7,000 homes in bulk

Posted on November 9, 2021November 8, 2021 By Msdlists

Real estate listing aggregator Zillow reportedly has a housing surplus and wants to bulk-sell up to 7,000 homes. It is looking to recover about $2.8 billion after reportedly buying up too many properties over the summer.

Zillow’s primary form of business allows users to search for available housing to rent or purchase. Most people are unaware that the company has a “Homes” division that is essentially a house-flipping business. Its “Zillow Offers” program buys properties for cash up-front, makes renovations, then puts them back on the market for a profit.

Over the summer, several tech companies, including Zillow, snatched up real estate as housing prices in the US began ballooning. In August, Vice reported that the company participated in a housing “arms race” with other tech companies like iBuyers and Opendoor. The company told investors it planned to expand its Homes division into a billion-dollar business and would purchase thousands of homes throughout 2021, despite the company’s stock being on a steep downward trend since February.

The housing market slowed down by the end of summer, and Zillow put a freeze on purchases. Last month, it told investors that a labor shortage in construction and renovation was the cause of the halt. However, insiders told Bloomberg that the company is pitching the properties to “institutional investors” in multiple home bundles. It hopes to make at least $2.8 billion from the sale of around 7,000 homes, estimated to be around seven-eighths of the properties it acquired in Q3 2021.

It remains unclear if the bulk sales will result in an overall profit or loss. According to Zillow, the current home value index is $308,220. The average asking price of the bundles would be $400,000 per unit. That’s a markup of nearly 30 percent. However, there is no guarantee that Zillow will recoup as much as it hopes. With real estate investors becoming bearish, it is unlikely the company will get its initial asking prices for the bundles.

KeyBanc Capital Markets reported that an analysis of 650 Zillow-owned properties showed the Homes division listed two-thirds at an asking price lower than what the company paid.

“I think they leaned into home-price appreciation at exactly the wrong moment,” KeyBanc analyst Ed Yruma told Bloomberg.

YipitData analysts noted that the company put a record number of homes on sale in September with the lowest markups since 2018. Additionally, Zillow reduced the prices on nearly half of the properties it listed in the third quarter. The analysts speculate a surplus is forcing Zillow to ask for less.

Technology

Post navigation

Previous Post: Guess the mystery travel picture location and you could win a prize – how to enter
Next Post: Retailers reel in delivery deadlines to get Christmas gifts to shoppers on time

Related Posts

  • Global PC sales fall 2% year on year, Chromebook shipments down 37 percent Technology
  • Learn Microsoft Azure, Windows and 365 to boost your tech career Technology
  • Mozilla brings big updates to Firefox on Android and iOS Technology
  • Nintendo to miss yearly Switch production goal by 20 percent due to component shortage Technology
  • Crusader Blade is a mod that uses Mount & Blade II to fight Crusader Kings III battles Technology
  • Police officers return to patrol car and find surprise note stuck to window News
  • Aaron Ramsdale excels as Arsenal beat Leicester to extend unbeaten streak Sport
  • Crusader Blade is a mod that uses Mount & Blade II to fight Crusader Kings III battles Technology
  • Learn Microsoft Azure, Windows and 365 to boost your tech career Technology
  • Woman angered after family doctor leaks surprise pregnancy news to her mother News
  • Mozilla brings big updates to Firefox on Android and iOS Technology
  • Global PC sales fall 2% year on year, Chromebook shipments down 37 percent Technology
  • New top editor at Germany’s Bild brings two women onboard Business

Copyright © 2023 MSDLISTS.

Powered by PressBook News WordPress theme