ZILLOW GROUP INC - ZG STOCK NEWS

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.

The housing market faced continued challenges as affordability issues persisted, according to Zillow's December data. Monthly mortgage costs decreased by over $100 but remain nearly double 2019 levels at approximately $1,795. The share of homes sold above list price fell to 28%, the lowest since June 2020, indicating a cooling market. It now takes about 30 days to sell a home, up from six days in April 2022. Year-over-year home sales are down 33%, while inventory has increased 16% compared to last year. Notably, typical rents remain high at $1,981, up 7.4% year-over-year.

ShowingTime+ has launched its innovative Listing Media Services in select U.S. markets including Milwaukee, Atlanta, Dallas, and Los Angeles, with more locations like Tampa and Orlando to follow shortly. This service allows real estate agents to easily schedule professional photography and create interactive listings that stand out. Integrating immersive media such as virtual tours and aerial photography, the service aims to enhance visibility in a competitive market where home prices are declining.

Statistics reveal that homes with 3D tours are saved 78% more frequently, emphasizing the need for engaging listings.

Zillow Group, Inc. (NASDAQ: Z, ZG) will release its fourth-quarter and full-year 2022 financial results after market close on February 15, 2023. A conference call to discuss these results will be hosted on the same day at 2 p.m. PT / 5 p.m. ET. Investors can access the live webcast and recorded replay via Zillow's Investor Relations website. This announcement highlights Zillow's ongoing commitment to transparency and investor engagement, as it seeks to provide insights into its financial performance.

Zillow's analysis reveals that Charlotte is the hottest housing market for 2023, followed by Cleveland, and Pittsburgh. This year's rankings are influenced by factors like home value expectations and buyer demand, with affordability challenges still prevalent. The report indicates Dallas and Nashville also feature in the top five. Notably, the rapid home value growth seen in previous years has subsided, leading to cooler markets overall. Zillow suggests that buyers navigating these markets will face less competition, with increased chances of negotiating better deals.

Zillow Home Loans reports that over 2 million homes now qualify for conforming loan options, eliminating the need for jumbo loans that typically involve higher fees and stricter qualification standards. This change stems from the Federal Housing Finance Agency increasing the conforming loan limit to $1,089,300 in high-cost markets, marking the first time it has surpassed $1 million. The baseline conforming loan limit rose by $79,000 to $726,200 for most areas. This update is expected to benefit home buyers in a challenging housing market.