Zillow Group, Inc. Class C Capital Stock - Z STOCK NEWS

Zillow's recent research reveals that first-time homebuyers may face unexpected costs averaging nearly $30,000 for home projects, a shock for 65% of home shoppers not seeking fixer-uppers. Millennials anticipate expenses between $10,000 and $15,000, but actual costs can reach $26,900. Major repairs include HVAC systems averaging $3,615. Zillow Offers assists homebuyers in acquiring move-in ready homes, while Thumbtack connects them with local professionals for necessary repairs. This insight underscores the importance of budgeting for homeownership beyond the purchase price.

Starter home prices are increasing nearly seven times faster than renter incomes, complicating down payment savings for first-time buyers. According to Zillow's analysis, a typical starter home costs around $148,500, requiring six years and five months for a renter to save for a 20% down payment at an aggressive 10% savings rate. While low mortgage rates allow for smaller down payments, rising prices pose a challenge. Black and Latinx renters face even greater hurdles, with longer timeframes to save compared to white renters. Overall, the housing market is demanding higher savings rates and presents unique obstacles for various demographic groups.

Zillow announced enhancements to its Premier Agent program on July 7, 2021, aimed at better recognizing agents who deliver exceptional customer service. The Best of Zillow status will now include additional metrics like transaction history, with the goal of creating a more streamlined experience for home buyers and sellers. Agents achieving this status will gain exclusive access to events and advertising bonuses. Zillow also plans to offer improved local market insights and tailored training resources through its new Zillow Academy.

A recent Zillow survey reveals that around 60% of millennials and Gen Z plan to use savings accumulated during the pandemic for home down payments. Despite challenges like job losses, 83% of young adults reported saving money, with 59%27% of respondents influenced by them. The study forecasts 6.4 million new households by 2025 as millennials enter prime homebuying years, indicating strong future demand in the housing market.

Recent research by Zillow and Ipsos highlights the challenges faced by Canadian homebuyers amid rising prices and low inventory. Key findings reveal that 64% of Canadians struggle with down payments, and two-thirds worry about affording their desired home. Nearly 29% report that local housing shortages affect their buying decisions. Despite these hurdles, digital tools like virtual tours are gaining traction, with 75% of buyers using online resources early in their search. The study surveyed 2,624 Canadians, emphasizing a persistent desire for home ownership despite financial barriers.

On June 23, 2021, Zillow reported that only 22% of established homeowners refinanced their mortgages in the past year, despite record-low interest rates dropping to 2.65%. Among those who refinanced, 89% cited low rates as motivation, with 29% saving between $300-$500 monthly. However, 38% of homeowners who didn’t refinance found fees too high, while 37% were considering moving soon. The survey highlights the significant savings potential but also reveals barriers preventing wider refinancing, such as lack of understanding of the process and concerns about costs.

Zillow's June 2021 Market Report reveals unprecedented growth in the U.S. housing market amidst a slight inventory recovery. National home values rose by 13.2% year-over-year, reaching a typical value of $287,148. The time for homes on the market dropped to just six days, indicating strong buyer demand. Inventory increased by 3.9% month-over-month, marking the first rise since July 2020. Rents also surged, up 5.4% annually to $1,747, with May's rent growth the highest since 2015. Zillow forecasts a 14.9% increase in home values by May 2022, with 5.91 million home sales expected in 2021.

Zillow has unveiled significant upgrades to its Zestimate home valuation model, enhancing its responsiveness to market trends and improving the national median error rate to 6.9%. The new algorithm utilizes neural networks and incorporates extensive property data, enabling faster processing times and more precise home value estimates. This accuracy boost is expected to increase the number of homes eligible for cash offers by 30%, expanding Zillow's home buying program. With over 104 million homes valuation, these updates signify a noteworthy advancement in real estate technology.

Experts from the Zillow Home Price Expectations Survey emphasize that relaxing zoning rules is crucial to increasing housing supply as inventory reaches historic lows. Anticipated new construction growth is expected to decline 2.5% below December 2020 levels by year-end, primarily due to high costs of labor and materials. The expert panel predicts an 8.7% home value growth in 2021, the highest since 2010, while homeownership among those aged 35-44 is expected to decline slightly by 2026 due to affordability challenges.