ZILLOW GROUP INC - ZG STOCK NEWS

Zillow has introduced a new feature allowing users to hide homes they aren't interested in, improving their home search experience. This tool aims to declutter search results, making it easier for buyers to focus on properties that match their preferences. The number of homes for sale remains near record lows, leading to longer search times for buyers. This feature is part of Zillow's ongoing efforts to enhance user experience with personalized tools, including multi-location searches and side-by-side home comparisons.

Sales of homes priced at $1 million or more more than doubled since 2019, reaching a record 90,110 transactions in 2022. The pandemic fueled demand, driven by low interest rates and economic growth. However, median home sizes decreased nearly 500 square feet from their 2020 peak, impacting buyers in major markets like Phoenix and Nashville. Portland led the sales increase at 253%, while Boston saw a 32% decline. The average price per square foot varies greatly, with Hartford offering the most space for $1 million, averaging 4,873 square feet at $205 per square foot.

The rising popularity of adjustable-rate mortgages (ARMs) indicates minimal risk of a housing market crash, according to Zillow's analysis. Applications for ARMs peaked at 12.6% in June and 12.2% in July, marking the highest levels since 2007. Recent ARM borrowers earn a median income of $165,000 and typically make down payments of 23.6%, showcasing their financial strength. However, Black mortgage borrowers remain more cautious with ARMs, reflecting past experiences in the housing market. The current housing market is characterized by tighter lending standards and a solid foundation compared to previous years.

Zillow has introduced a new filter allowing renters to search listings by move-in date, potentially saving thousands in today’s competitive market. This feature aims to help renters align lease dates, avoiding double rent payments, as average U.S. rents surpass $2,000. The Zillow app's Renter Hub also enhances user experience by organizing rental inquiries and communications. Additional features include multilocation search, Bike Score assessments for properties, and upcoming in-app updates for renter profiles. These tools respond to increasing rental demand as many buyers choose to rent due to high mortgage costs.

The Zillow July 2022 market report reveals a 0.1% decline in U.S. home values, the first drop since 2012. The typical home now values at $357,107, reflecting a 16% increase year-over-year despite the decline. Inventory is up 5.1% monthly, signifying a shift towards a more balanced market, though still 43.5% below July 2019 levels. Rent appreciation is stabilizing at $2,031 monthly, with growth slowing. Notably, home values fell in 30 of the 50 largest metro areas, while Miami saw a monthly increase of 1.5%.

A Zillow analysis reveals shifting dynamics in the housing market due to rising mortgage costs and declining affordability, with competition now strongest for lower-priced homes. Monthly mortgage payments have surged 60% year-on-year, pushing buyers toward more affordable options. While inventory for low-tier homes has increased slightly, sales across all categories have dropped, with U.S. home sales down 24.1% year-over-year. Sellers are adjusting to the market, providing buyers with more negotiating power, though home prices remain at or near record highs.

Registration is open for Zillow's second annual HBCU Housing Hackathon in partnership with the United Negro College Fund and Amplify 4 Good. Starting on September 9, students from Historically Black Colleges and Universities (HBCUs) will compete for $90,000 in cash and prizes while developing tech solutions to improve the home-finding process. The inaugural event in 2021 engaged 150 students from 17 HBCUs. Students will also have the chance to interview for paid internships. The event closes registration on September 6.

Zillow has launched its AI-generated floor plan tool nationwide, enhancing the home shopping experience with interactive features. This innovation allows users to view floor plans alongside listing photos and 3D tours, saving time and improving decision-making. Studies show that 56% of buyers felt they wasted time on unsuitable properties. The tool aims to boost engagement for agents and landlords, as 81% of buyers are more likely to visit homes that include appealing floor plans. Zillow aims to redefine online home shopping by providing a realistic and immersive experience for users.

Zillow Group (NASDAQ: Z, ZG) reported Q2 2022 consolidated revenue of $1.0 billion, surpassing guidance mid-point, with a GAAP net income of $8 million. The IMT segment held steady at $475 million, while the Homes segment revenue exceeded expectations at $505 million. Premier Agent revenue fell 5% year-over-year to $333 million amid challenging market conditions. The company holds cash and investments of $3.5 billion, with debt reduced to $1.7 billion. CEO Rich Barton emphasized progress in financing and solutions for a comprehensive digital real estate experience.