Welcome to our dedicated page for Zillow Group news (Ticker: Z), a resource for investors and traders seeking the latest updates and insights on Zillow Group stock.
Zillow Group, Inc. (Nasdaq: Z and ZG) generates a steady stream of real estate news and housing market analysis through its Zillow-branded reports and research. As an Internet-based real estate company and the operator of what it describes as the most visited real estate app and website in the United States, Zillow Group regularly publishes updates on home values, affordability, mortgage trends and competition across major U.S. metropolitan areas.
News about Zillow Group often centers on its housing market reports, which track metrics such as the share of household income needed for a typical mortgage payment, changes in inventory, price cuts, rent growth and regional differences in market heat. The company also releases forecasts that outline expected home value growth, mortgage rate paths and affordability conditions in coming years, as well as rankings of markets it identifies as hottest or most popular for home shoppers.
In addition to macro-level market coverage, Zillow Group’s news includes consumer research and behavior insights, such as how buyers and sellers choose real estate agents, what features home shoppers search for most, and how search patterns vary by state or region. The company highlights tools on its platform, including affordability calculators, down payment assistance information and its BuyAbility feature, in the context of these reports.
This news page aggregates press releases, analyses and company updates related to Zillow Group’s role in the U.S. housing market. Readers can use it to follow changes in affordability, monitor which metros Zillow identifies as especially competitive, and see how the company’s data and tools are being applied to topics ranging from wildfire impacts on housing to seasonal shifts in listings and sales activity.
U.S. home values increased by 6.2% year-over-year, now averaging $329,542, but sales are hindered by low seller inventory, the second-lowest January count on record.
Despite a slight uptick in buyer activity, the 230,000 new listings in January were 17% lower than last year's record low. Buyers may be encouraged by declining mortgage rates from 7.08% to 6.09% since November. However, rising rates in early February threaten to dampen both supply and demand, as current homeowners with lower rates are reluctant to sell.
Overall, the housing market remains competitive, but widespread bidding wars are unlikely compared to previous years.
As the spring home shopping season approaches, Zillow's analysis indicates a calmer market compared to the frenzy of 2021-2022. While buyers will encounter competition, particularly for competitively priced homes, the overall number of buyers is expected to be lower. Affordability remains a significant challenge, with buyers spending an average of 31% of their income on mortgages. Despite a slight drop in mortgage rates, demand is unlikely to match the intense competition of prior years. The market is characterized by low inventory, and sellers will need to price homes competitively to attract buyers.
Zillow Group (NASDAQ: Z, ZG) reported its financial results for Q4 2022, achieving consolidated revenue of $435 million and a net loss of $72 million. The full-year revenue stood at $2.0 billion, reflecting an 8% decline year-over-year. The IMT segment saw a 14% revenue decline to $417 million, driven by a 20% drop in Premier Agent revenue. However, Rentals revenue increased by 13% to $68 million. Adjusted EBITDA was $73 million for Q4. The company's cash reserves were $3.4 billion, with share buybacks totaling $174 million.
Zillow and Opendoor have launched a new partnership allowing homeowners in Atlanta and Raleigh to compare selling options directly on Zillow. Sellers can now request cash offers from Opendoor while also getting market estimates from Zillow Premier Agent partners. This initiative is part of Zillow's commitment to simplify the home-selling process, as highlighted by a recent survey indicating a third of Americans find selling emotionally taxing. This feature is expected to enhance the user experience on Zillow, which sees millions of visitors monthly. Future market expansions are planned to roll out additional services.
Zillow and Opendoor have partnered to streamline the home-selling process for homeowners in Atlanta and Raleigh. Homeowners can now request a cash offer from Opendoor while simultaneously receiving an estimate for selling on the open market through Zillow Premier Agents.
This initiative aims to simplify selling by offering multiple options in one place. Users can work with licensed advisors or explore options independently. The service is part of Zillow's broader aim to enhance its real estate offerings, including financing through Zillow Home Loans. This new feature will expand to more markets across the United States in the upcoming months.
On February 13, 2023, Zillow reported that single renters in the U.S. pay an average "singles tax" of
As mortgage rates have slightly decreased, buyers are gaining more purchasing power, particularly in more affordable markets like Memphis and the Midwest. A $3,000 monthly mortgage payment now allows for the purchase of homes valued around $620,000, up $60,000 from last October, while the average home size has increased by 84 square feet. However, the overall purchasing power remains lower than last year, with homes being 140 square feet smaller than in early 2022. Markets like Hartford and Indianapolis experienced significant declines in square footage available. Zillow's analysis shows that home shoppers should improve credit scores to secure better mortgage rates.
According to a Zillow analysis, rent affordability is significantly better in cities with higher minimum wages. Currently, in the U.S., it requires nearly four full-time workers earning the federal minimum wage to afford a typical two-bedroom rental. Only 10 of the 50 largest cities allow two full-time minimum wage workers to afford such housing. Cities with higher local minimum wages show improved affordability. The analysis emphasizes the necessity of increasing housing supply, with support from 77% of surveyed homeowners and renters for more diverse housing options to mitigate affordability issues.
Zillow has launched a groundbreaking AI-powered feature that enables home buyers and renters to search for properties using natural language, directly reflecting how they might describe their ideal home to friends. Users can input phrases like "$700K homes in Charlotte with a backyard" into the Zillow search bar, simplifying the search process by eliminating the need for filters. This feature is currently available on the iOS app, with plans to expand to Android and Zillow.com soon. Zillow's continued investment in AI technology aims to enhance user experience and establish a comprehensive platform for real estate transactions.
Zillow has launched a new feature allowing renters to schedule apartment tours online, streamlining the process akin to booking restaurant reservations. This functionality is now available for over 2,600 apartment buildings and is supported by integrations with Knock® CRM and Funnel Leasing®. Data shows that 71% of recent renters conducted up to four in-person tours, with 58% preferring to schedule these tours online in 2021. This automated scheduling ensures that renters secure appointments without delays, receiving reminders via email and text. Zillow aims to enhance the rental experience, reducing coordination time for property managers.
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