ZILLOW GROUP INC - ZG STOCK NEWS

Zillow Home Loans' recent survey reveals prospective home buyers dedicate more time to researching TVs, cars, and vacations than to mortgage lenders. 72% of buyers don't shop around, potentially leading to tens of thousands of dollars in extra costs over the life of their mortgage. While 46% of those seeking pre-approval submitted only one application, experts warn that understanding credit reports and shopping for better rates is crucial in today's challenging housing market.

The latest Zillow market report reveals that rising mortgage rates are causing significant disruptions in the housing market. Sales have plummeted by 24% year-over-year, with new listings decreasing by over 12% since September. The average monthly mortgage payment has skyrocketed by 77% compared to last year, reaching $1,910. Meanwhile, home values remain stable at $358,458, up nearly 12% since 2021. Rent prices have finally declined for the first time in two years, now averaging $2,040. Major cities like Seattle and Denver saw the sharpest drops in new listings.

Research from Zillow indicates that home buyers can expect the best discounts on homes listed on Thursdays, with about 28% of sellers reducing their prices, the highest since 2018. Price cuts average around 3% of the listing price, translating to approximately $11,000 on a typical home. Buyers may find larger reductions in cities like Buffalo, while Phoenix has the smallest cuts. The current market is seeing homes linger on the market 45% longer, providing buyers with more negotiating power.

Housing Connector, launched with Zillow in 2019, has matched 3,754 individuals with affordable housing in Seattle and Denver, addressing homelessness effectively. The program operates with over 1,300 participating properties, leveraging vacant units to provide long-term housing stability. It plans to expand to a third market in 2023. The average annual rent in these cities exceeds $27,000, directly impacting rates of homelessness. Zillow’s technology aids case managers in efficiently finding homes, facilitating faster placements for those in need.

A new Zillow survey reveals key misconceptions among home buyers and sellers in the current market. 46% of agents believe buyers wrongly expect significant price drops, while 35% think waiting for lower mortgage rates is wise. Sellers anticipate outdated norms like bidding wars and quick sales. First-time buyers should prioritize financing and clarify their needs versus wants. Zillow forecasts a modest 1.3% increase in home values by September 2023, despite a cooling market. Agents suggest competitive pricing and timely home improvements are crucial for sellers in today's landscape.

Zillow Group (NASDAQ: Z, ZG) announced that Chief Operating Officer Jeremy Wacksman will participate in a fireside chat on November 15, 2022, at 10 a.m. ET during the RBC Capital Markets Technology, Internet, Media and Telecommunications conference. Attendees can view the live webcast and replay on the company's Investor Relations website. Zillow Group is the leading real estate platform in the U.S., offering a simplified experience for buying, selling, renting, and financing homes. The company includes several well-known affiliates such as Trulia and Zillow Home Loans.

Zillow Group reported its Q3 2022 financial results, with consolidated revenue from continuing operations at $483 million, surpassing its outlook. The IMT segment generated $457 million in revenue, a 5% decrease year-over-year, while Premier Agent revenue fell by 13% to $312 million. Rentals revenue rose 10% to $74 million. The company reported a consolidated net loss of $53 million. Despite challenges in the housing market, Zillow continues to invest in its growth initiatives and maintain a strong cash position of $3.5 billion at the end of Q3.

The housing market is stabilizing post-pandemic, with homes selling faster than pre-pandemic but slower than last year. A Zillow analysis reveals that homes typically went pending in 19 days in September, although the median age of inventory rose to 54 days, a 45% increase from last year. With 32% fewer active buyers compared to last year, sellers must competitively price their homes to attract buyers. Markets like Austin and Las Vegas show mixed trends in selling speeds, indicating varied demand based on home types and locations.

The latest Zillow survey highlights that typical monthly rents have reached a record high of $2,084, compelling more people to remain renters as home-buying costs rise. Over one-third of renters find securing a rental more challenging than job hunting. Key strategies to secure rentals include being flexible with move-in dates (34%), paying more upfront (30%), having strong references (29%), applying early (26%), and offering longer leases (23%). These tactics help renters navigate the competitive market and avoid issues like double rent payments.