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.
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…