November 16, 2021
Real Estate

Zillow pauses home buying — raising ‘red flags’ about the real-estate market

Zillow’s unexpected announcement this week that it’s putting a temporary stop to its home-buying activities raised many analysts’ eyebrows. And some argue that more concerning trends could be on the way.

The service, Zillow Offers, is what’s known as an “iBuyer” — it purchases and sells homes directly to consumers, typically renovating them in between.

Following a report from Bloomberg, Zillow
Z,
+1.85%

ZG,
+3.98%

confirmed that its Zillow Offers division would not be signing any additional new contracts to purchase homes through the end of 2021.

In explaining the move, Zillow said the company was facing a backlog of renovations and dealing with operational-capacity issues.

Labor and material shortages

“We’re operating within a labor- and supply-constrained economy — inside a competitive real estate market, especially…

Read full article here: www.marketwatch.com