ZILLOW GROUP INC - ZG STOCK NEWS

Zillow Group (Nasdaq: Z, ZG) announced its participation in the RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference. CEO Jeremy Wacksman and CFO Jeremy Hofmann will engage in a fireside chat on Tuesday, Nov. 19, 2024, at 8:45 a.m. ET / 5:45 a.m. PT. The presentation will be accessible via live and recorded webcasts through the Events & Presentations section of Zillow Group's Investor Relations website.

Zillow's 2025 home trends highlight a blend of modern technology and nostalgic charm. Emerging trends include whole-home batteries, cozy living spaces, and home libraries. Mentions of whole-home batteries surged by 62%, and solar panels by 18%. Electric vehicle chargers are up by 34%, and induction cooktops by 5%. The term 'cozy' increased by 35%, indicating a preference for smaller, purpose-driven rooms over open floor plans. Nostalgic elements, such as floral patterns and antique furnishings, rose by 14%, and vintage mentions by 9%. Home libraries and Victorian-era sculleries are also gaining popularity. Climate resilience features are crucial, with mentions of flood barriers up 22%, seismic retrofitting by 20%, and water catchment systems by 19%. Drought-resistant turf yards increased by 14%. Spa-inspired wet rooms are appearing 19% more often, reflecting a growing focus on wellness design.

Zillow Group reported strong Q3 2024 results with total revenue of $581 million, up 17% year over year, exceeding company outlook. Residential revenue grew 12% to $405 million, Rentals revenue increased 24% to $123 million, and Mortgages revenue surged 63% to $39 million. The company reported a net loss of $20 million (3% of revenue) and Adjusted EBITDA of $127 million (22% of revenue). Traffic reached 233 million average monthly unique users, up 1% year over year, with 2.4 billion visits, a 3% increase.

Zillow's recent survey reveals that 45% of home buyers who purchased in the past year secured mortgage rates below 5%, despite current rates hovering near 7%. The most common method (35%) was through special financing from sellers or builders. Other strategies included rate buydown contingencies (26%), post-purchase refinancing (25%), and borrowing from friends/family (23%). This comes as mortgage rates surged from 2.65% in 2021 to 7.79% in fall 2023, causing typical mortgage payments to rise 115% from pre-pandemic levels.

Nearly half of U.S. renter households are rent burdened, with Gen Z renters (ages 18-25) facing significant challenges. According to Zillow and StreetEasy's analysis of the 2022 ACS, 58.6% of Gen Z renters nationwide spend more than 30% of their income on housing. In 21 of the 30 largest U.S. metros, this share is even higher, with cities like San Diego, Los Angeles, and Sacramento seeing nearly three-quarters of Gen Z renters rent burdened. Comparatively, 60.2% of Millennials were rent burdened at the same age in 2012. Rent burden among young adults has seen a decline in cities like Austin but an increase in Houston. Zillow and StreetEasy are working to reduce upfront rental costs and provide tools to help renters manage affordability.

According to a Zillow analysis, America's housing stock is growing faster than pre-pandemic levels, with builders completing about 1 million single-family homes in 2023, the second-highest annual total since the global financial crisis. This represents an 11% increase from 2019 completions. To achieve this pace, builders have shifted towards higher density housing, with starts for attached single-family homes rising 3% year-over-year, while detached single-family home starts declined 9%.

The analysis also reveals that markets with faster-rising home values have seen a greater surge in permitting. Houston, Dallas, and Phoenix have issued the most single-family permits since 2020. However, the overall pace of construction is slowing, with 946,000 single-family home starts in 2023, 7% fewer than in 2022. This shift towards more affordable, space-efficient designs is seen as a response to the ongoing housing affordability crisis and the need to fill a shortage of 4.5 million homes.

Zillow Group, Inc. (Nasdaq: Z and ZG) has announced it will release its third-quarter 2024 financial results after market close on Wednesday, Nov. 6, 2024. The company will host a webcast and conference call to discuss the results at 2 p.m. PT / 5 p.m. ET on the same day.

Investors and interested parties can access information about Zillow Group's financial results, including a link to the live webcast and recorded replay, on the company's Investor Relations website. Registration for the live event is available through a provided link.

Zillow's latest market report reveals increased activity in the housing market due to lower mortgage rates. Home sales and new listings moved closer to pre-pandemic norms in September, with sales down 22.2% and new listings down 17% compared to pre-pandemic averages. The typical U.S. home value is now just under $361,000, down 0.2% from August but up 2.4% year-over-year.

Lower mortgage rates boosted buying power, with a two-year low of 6.08% in late September increasing affordability by over $40,000 for some buyers. The share of listings with price cuts decreased to 25.1% in September. Buyers markets are spreading across the Southeast, with 10 of the 50 biggest metros now favoring buyers, primarily in Florida, Georgia, Texas, Tennessee, and Louisiana.

The report warns that mortgage rates remain volatile, emphasizing the importance of buyers being prepared for market fluctuations.

Recent Zillow research reveals that Hispanic homeowners have made significant progress in narrowing the home value gap with white homeowners over the past two years. The gap is now at its narrowest ever, with Hispanic-owned homes worth 11.9% less than those owned by non-Hispanic white households, down from 12.1% last year and 12.4% in December 2021.

Key findings include:

• More than two-thirds of the 100 largest metro areas saw the home value gap decrease for Hispanic homeowners over the past year.
• Hispanics represent 18% of prospective buyers but only 13% of successful purchasers.
• Hispanic borrowers face higher mortgage denial rates (18.8%) compared to non-Hispanic whites (10%).
• The home value gap for Black homeowners has also slightly narrowed to 17.7% from 17.9% over the past year.

While progress is being made, challenges remain in achieving homeownership equity for Hispanic and other minority communities.