Zillow took 'massive losses' on Phoenix homes, laying off 25% of workforce

[mahatmakanejeeves]

Zillow took 'massive losses' on Phoenix homes, laying off 25% of workforce

Angela Gonzales
Tue, November 2, 2021, 10:17 PM · 5 min read

Taking losses on its home sales, Zillow is winding down its Zillow Offers division and laying off 25% of its workforce. Here's what local brokers have to say about it.

{snip}

[tulipsandroses]

1. Interesting. Harbinger of things to come for the housing market?

These investors have created a mess in th housing market.?There was no good reason that home prices jumped 80-100K above normal prices in such a short time. Shutting “ordinary folks” out of the market. I am still in shock over how much home prices have risen in my area. How many people have been trying to by a home for almost a year but keep getting outbid by cash buyers AKA corporations.

Dems will probably pay the price for this mess. I’ve seen articles where Republicans want to blame Dems for people not being able to afford the American Dream of home ownership. Which would have been good messaging. But they are too busy milking the CRT manufactured issue to focus on a real issue.

[mahatmakanejeeves]

2. Zillow Quits Home-Flipping Business, Cites Inability to Forecast Prices

Zillow Quits Home-Flipping Business, Cites Inability to Forecast Prices

Termination of ‘iBuying’ comes after company said it was halting new home purchases for rest of 2021

By Will Parker and Nicole Friedman
https://twitter.com/_willparker_
[e-mail]
https://twitter.com/nicolefriedman
[e-mail]
Updated Nov. 2, 2021 6:19 pm ET

Real-estate firm Zillow Group Inc. is exiting from the home-flipping business, saying Tuesday that its algorithmic+ model to buy and sell homes rapidly doesn’t work as planned.

The firm’s termination of its tech-enabled home-flipping business, known as “iBuying,” follows Zillow’s announcement about two weeks ago that it was halting all new home purchases for the rest of the year. At the time, Zillow pointed to labor and supply shortages for its inability to renovate and flip houses fast enough.

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