Zillow's stock data trend has relations with market trends. With current state of Zillow stock kinda indicates it's beginning of real estate market crash. Any insights, links, inside information?

@Amey Phatale I think Zillow’s stock decline has a lot more to do with their failed attempt to get into the flipping business than housing in general. Houses in my area seem to still be solid.

@Amey Phatale To clarify, you believe that Zillow's stock price and the real estate market are correlated. Then because Zillow's stock price has dropped, thus prices in Real Estate must? Which part of the market does Zillow's stock price correlate with? Residential, Multi Family, light Industrial, city office, life science? Also, which MSA have more of a relationship than others? since correlation doesn't equal causality, what links the two?

@Amey Phatale While anything is possible, I would take any of Zillow's recommendations/trends with a grain of salt. Based on their over-the-top Zestimates and recent house buying program failure, it illustrated that even these large groups don't necessarily understand the market.

7k house unless concentrated all in one market is just a dimple on a pimple LOL.. this is a failed exercise by Zillow.. And absolutely its common knowledge you make money in a few ways in RE.. When you buy ( get a good to decent deal or value add) organic appreciation ( which zillow has not owned them long enough to see much of a run since they paid tippy top of market. and then if they are rentals then you have cash flow tax bene's and debt paydown by others.. no big mystery here.. Buy high sell low is a corner stone of investing in America look at the stock market..

Hard to tell if this is a serious question or someone just trolling to stir the pot... Zillow's stock declined because of very poor execution of a business model that many other companies thrive on.

Exactly. ZG managed to lose about $540,000,000 buying and owning houses since 2018, the largest run up in real estate values in history. A lesson to us all to not to over-pay. Bloomberg and others wrote articles stating Zillow's inventory of homes is about 7,000. They are looking for an institutional buyer at $2.8B. We don't know where all these houses are (I gather a lot are in Phoenix) or what % is market-ready, etc but most likely a hedge fund will buy them in one shot with the goal most likely to hold and rent out 90% or whatever of them. Higher end retail houses have certainly not been my target to hold as rentals. So it's doubtful the overall housing market is going to be flooded with inventory. Specific markets Z did a lot of buying in may see a bunch of new rental inventory with corporate landlords. Possibly not good for landlords in those specific markets depending on rental demand.

I just hope this causes them to adjust their "zestimates" to be more realistic instead of inflated to entice homeowners to sell to zillow.

Zillow's stock crashed as they made a huge mistake when they bought all the properties in Arizona and couldn't flip them.

Bill, I think we can see how this is going to go from a technical perspective very easily. It is highly, highly unlikely that the housing stock the Zillow algorithms targeted is rich in SF that would make high-quality SF rentals, the kind of modest, understated, well-built places with a really sound traditional design and reasonable building quality that bear up under years of low-maintenance operations under heavy rental usage. So they're going to shuffle off a lot of "little boxes made of ticky-tacky" onto these institutional buyers, who are going to hire professional property managers who are not particularly interested in rigorously controlling maintenance costs over the long haul and not at all incentivized to carry out high-quality long-term preventive maintenance schemes, or to treat tenants well. There's an awful lot of wiggle room in that pattern there for the small operators coming up in single-family to build their portfolios and screen out the best tenants. There will be more rental supply for a while but it will not be particularly cheap-to-run or soundly-run rental supply. Not sure this will be a bad development for small landlords like me. But as for a real estate crash, no, I think you're absolutely right. This is not the beginning of the end. I am increasingly convinced that the end of this real estate up cycle will come when Biden really does something dramatically stupid to increase housing supply, a kind of well-meaning academic bonehead lefty move to equal GW Bush's well-meaning academic bonehead righty moves to open up the housing market by deregulating lending to subprime buyers, Biden will absolutely have to promise some totally daft housing lunacies to his base in his bid to get re-elected in 2024, that's for sure, while anyone who comes up on the right will just have to point to the affordable housing shortage as a failure of federal policy and not actually make any firm promises about how to fix it.

I do not think we should see their failure as a market indicator. The program was never profitable, and became more bloated as it grew. It was overdue to be killed. ibuying hasn’t been too profitable for others either. It’s a bad business model, made worse by Zillow recently overpaying and selling for less.

Zillow's data show real estate crash is here? Any insight?Zillow's data show real estate crash is here? Any insight?

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Zillow's data show real estate crash is here? Any insight?

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