Zillow Group - ZG STOCK NEWS

Zillow's latest analysis reveals a significant shift in home buyer preferences, with remodeled homes commanding a 3.7% premium ($13,194 on a typical U.S. home) - the highest among 359 listing keywords analyzed in 2024. Remodeled listings receive 26% more daily saves and 30% more shares compared to non-remodeled properties.

In contrast, fixer-uppers are selling at their largest discount in three years, at 7.3% below similar homes. Properties needing work or TLC sell for approximately 8% less than expected, translating to over $28,000 on a typical U.S. home. This marks a significant change from pre-pandemic trends when fixer-upper listings were more likely to sell.

Currently, 28% of all Zillow listings are described as 'renovated,' following a pandemic-driven renovation boom. With nationwide home appreciation at 2.6% in 2024 and a forecast of 2.9% for 2025, sellers can no longer rely on rapid equity gains to offset renovation costs.

Zillow's latest rental analysis reveals the 'singles tax' - the extra cost of living alone versus sharing rent - has reached a record-high of $7,562 annually, increasing by $450 from last year. New York City maintains its position as the most expensive city for solo renters with a $20,100 annual premium, according to StreetEasy data.

Boston has moved up to fourth place in the rankings of most expensive cities for singles, surpassing Washington, D.C. The typical rent in Boston stands at $3,002 as of December 2024, approximately 53% above the national average. Nationwide, couples or roommates sharing a one-bedroom rental can collectively save $15,123 annually.

Zillow's latest market data reveals sellers are increasingly cutting home prices as high mortgage rates impact buyer activity. Nearly 23% of sellers reduced their list prices in January 2025, the highest share in Zillow records. Despite challenges, home values are up 44% compared to pre-pandemic levels and have risen 2.6% year over year.

New listings increased 12% year over year as rate lock effects diminish. Competition varies significantly by region, with homes selling fastest in coastal metros like San Jose and Boston. The median time to pending sale is 38 days nationally, slower than last year but faster than pre-pandemic norms. Price cuts are most prevalent in Phoenix (34%), Tampa (32%), and Jacksonville (31%).

While 25% of homes sold above asking price in December, buyers now have more negotiating power than in any January of the past five years. Mortgage rates reached 7.04% in January, contributing to a 3.6% year-over-year decline in pending sales.

Zillow Group (NASDAQ: Z) reported strong Q4 2024 financial results, with revenue growing 17% year-over-year to $554 million, exceeding company outlook. Full-year 2024 revenue reached $2.2 billion, up 15% from 2023.

Key Q4 metrics include: For Sale revenue up 15% to $428 million, Residential revenue up 11% to $387 million, Mortgages revenue increased 86% to $41 million with purchase loan origination volume up 90% to $923 million, and Rentals revenue up 25% to $116 million.

The company reported a Q4 net loss of $52 million (9% margin), improved from $73 million loss (15% margin) in Q4 2023. Q4 Adjusted EBITDA was $112 million (20% margin). Cash and investments stood at $1.9 billion at quarter-end. Traffic reached 204 million average monthly unique users, up 3% year-over-year.

Zillow (ZG) and Redfin have announced a strategic partnership making Zillow the exclusive provider of multifamily rental listings (properties with 25+ units) on Redfin and its sites, Rent.com and ApartmentGuide.com. The partnership expands the Zillow Rentals Network, which already includes HotPads, Trulia, and Realtor.com.

The collaboration aims to benefit both renters and property marketers. Renters will gain access to a larger pool of available apartments across multiple platforms, while multifamily properties advertising with Zillow will reach a wider audience through a single advertising solution. Properties currently advertising on Redfin's websites will have the opportunity to transition to Zillow's platform.

The implementation will begin this spring. Notably, Zillow's multifamily rentals marketplace has shown significant growth, increasing from 37,000 properties in December 2023 to 50,000 properties in December 2024.

Zillow's latest market report reveals single-family home rents have reached a record high, costing about 20% more than typical multifamily apartments. Single-family rents have increased 41% above pre-pandemic levels, while multifamily rents rose 26%. Currently, single-family homes show 4.4% annual growth compared to 2.4% for apartments.

Property managers are increasingly offering concessions, with 41% of rental listings now including incentives like free rent or parking. The for-sale inventory remains 25% below pre-pandemic norms, though showing signs of recovery. Ten of the 50 largest metros, primarily in Florida, Texas, and the South, now have more homes available than before the pandemic.

Salt Lake City shows the largest price premium for single-family rentals at 59% over multifamily units, while Detroit has the smallest at 9%. The median age of renters has increased to 42 in 2024, up from 33 three years ago, reflecting longer rental periods before home purchases.

Zillow Group (Nasdaq: Z and ZG) has scheduled the release of its fourth-quarter and full-year 2024 financial results after market close on Tuesday, February 11, 2025. The company will host a webcast and conference call at 2 p.m. PT / 5 p.m. ET on the same day to discuss the results. Investors and interested parties can access information about the financial results and the live webcast through Zillow's Investor Relations website. A recorded replay will also be available after the event.

Zillow Group (Nasdaq: Z and ZG) has appointed Zuhairah Washington as senior vice president of Market Operations and Flex general manager. Washington brings 20 years of executive experience from companies like Uber and Expedia Group. At Uber, she managed the company's fifth-largest U.S. market, while at Expedia Group, she led a global team of over 1,000 employees and managed $4 billion in strategic partner revenue.

In her new role at Zillow, Washington will lead operations and scaling initiatives to support Flex agents and teams as the company expands its Enhanced Markets in 2025. The Enhanced Markets initiative integrates multiple aspects of home-buying, including financing, touring, and agent-finding, into a seamless digital experience. Currently operating in 43 Enhanced Markets, Zillow aims to expand this integrated housing super app experience to more markets nationwide.

Buffalo, New York, maintains its position as the hottest housing market for 2025, according to Zillow's latest analysis. The ranking considers factors including home value growth forecasts, sales velocity, job growth per new home permitted, and expected growth in owner-occupied households.

Key factors driving Buffalo's top position include having the highest ratio of new jobs per new home permitted and relatively affordable housing prices. Hartford leads home value appreciation forecasts at 4.2% for 2025, while other top markets include Providence, Indianapolis, and Charlotte.

The analysis reveals a geographic shift in hot markets, spreading from the Northeast, Great Lakes, and South regions into the Midwest and West. Virginia Beach showed the most significant improvement, jumping 23 spots to #13. Notable trends include relative affordability driving demand in Midwest metros and slower but steady price growth expectations for 2025.