“Zillow slams the brakes on home buying as it struggles to manage its backlog of inventory.”
“Zillow says it’s closing homebuying business, cutting 25% of workforce; earnings miss estimates.”
Now this is irony.
Zillow, the company that invented “real estate porn” and the Zestimate…
A company that built its traffic and following by providing consumers (often what used to be referred to as Looky Loos) with wildly inaccurate estimates of what homes are worth…the Zestimate. Zillow…has paid too much on its own purchases!
Zillow has claimed 80 plus million site visitors each month…and yet the total number of real estate transactions consistently each year is between 5 and 6 million homes.
Real estate real estate professionals have been complaining about the Zestimate since it was first introduced by Zillow at the turn of the Century.
Did Zillow follow its own valuation advice? Zillow is now suffering financially for over paying for homes and laying off staff.
Also, consider that Zillow was once a consumer site, but Zillow converted itself into a brokerage to gain access to IDX feeds for display on Zillow, after Listhub purchased Point2 and choked off syndication data feeds.
For a number of reasons, I see Zillow as vulnerable today (and so does the stock market, it seems).
Consumers often view broker sites with a jaundiced eye. Zillow is a Broker Site, it is just not widely known at the moment by most consumers.