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

SEATTLE, Sept. 8, 2020 /PRNewswire/ -- Zillow's analysis reveals that nearly two million renter households could afford a typical U.S. starter home if remote work becomes a long-term option. In cities like San Francisco, 22% of renters priced out of homeownership can afford monthly payments on a starter home priced at $725, compared to $5,181 in the city. Millennials make up nearly half of these potential buyers. While the pandemic has altered housing preferences, proximity to work and other factors will influence their decisions.

Zillow's Weekly Market Report highlights a competitive U.S. housing market driven by low supply and high buyer demand. Total for-sale inventory has decreased for 13 consecutive weeks, down 29.1% year-over-year. Despite rising median list prices, which are 8.9% higher than last year, new listings rose 3.5% month-over-month, signaling potential relief for buyers. Homes are selling 13 days faster than last year. Notably, newly pending sales increased by 18.4% year-over-year, the highest gain since November 2019. Mortgage rates remain low, aiding market activity.

Dotloop has integrated California Association of Realtors® (C.A.R.) Standard Forms into its platform, facilitating a fully digital transaction process for over 200,000 members. This integration allows California agents to access necessary forms directly, streamlining the closing process. Dotloop supports over 7,000 brokerages in the U.S. and Canada, offering features like document editing, eSigning, and strong compliance tools. This enhancement is expected to provide California brokers and agents with a competitive edge in the real estate market.

As of July, the prevalence of rental concessions on Zillow listings has increased significantly, reaching 30.4% compared to 16.2% in February. This rise reflects landlords' efforts to attract tenants in a softened rental market due to the pandemic. The most common concession is free rent, comprising 90.8% of listings, with a median of six weeks offered. Major cities like Washington D.C. (57.5%) and Charlotte (53%) show substantial increases in concessions. Notably, concessions are more prevalent in multifamily rentals, highlighting urban rental market challenges.

Home seller confidence is on the rise, with new homes entering the market nearing last year's levels, according to Zillow's Weekly Market Report. However, buyer demand remains robust, with newly pending sales up 16.5% year-over-year. This is the largest increase since mid-February. Currently, the median U.S. list price stands at $345,255, marking an 8.3% increase from last year. Despite a 10.6% drop in new for-sale listings, inventory is down 28.9% compared to last year. Mortgage rates are expected to remain low after a delay in a fee on refinances, promoting further buyer activity.

In July 2020, sellers gained an advantage in the housing market as buyers outpaced listings, according to Zillow's Real Estate Market Report. Home values rose to a typical price of $253,527, marking a 4.5% annual increase. Homes sold quickly, averaging 16 days on the market. Despite high unemployment, demand remains strong due to low mortgage rates. However, inventory dropped 28.4% year-over-year, with Zillow predicting slower home value growth of 3.6% in the next year amidst ongoing economic risks.

Zillow has introduced Builder Ratings and Reviews, a new feature that allows buyers to rate their home builders based on their move-in experience. This initiative aims to enhance transparency for shoppers interested in new construction homes, as 76% of buyers prioritize builder reputation. The feature is available at no cost to builders using Zillow's Promoted Communities product, helping them manage their reputation and drive sales. Zillow reported a 34% year-over-year increase in page views for paid new construction listings, indicating a growing market interest.

Zillow's latest research reveals that 81% of homeowners are engaging in DIY home improvement projects to increase their home's value before selling. Collaborating with Thumbtack, Zillow highlights five manageable projects that could enhance appeal and profitability. Improvements such as upgrading lights and faucets, smart landscaping, adding a fire pit, and repainting doors can potentially lead to higher sale prices. Zillow's data indicates that homes with enhancements have a better chance of selling above listing prices, as sale prices rise and homes sell at the fastest pace in over two years.

Zillow's Weekly Market Report reveals a 17% year-over-year increase in newly pending sales. Despite a 4.3% rise in new listings this week, they remain 13.2% lower than last year, contributing to a 27.6% decline in total inventory. The median list price in the U.S. is now $344,660, a 7.3% increase from last year, while the median sale price is $269,700, up 1.8% year over year. Urban and suburban markets are performing similarly, although certain areas like Manhattan and San Francisco show divergence.