ZILLOW GROUP INC - ZG STOCK NEWS

The Zillow November Market Report indicates a pre-winter surge in home values, with U.S. home prices increasing by 1.2% from October and 19.3% year-over-year, marking the highest growth for this century.

Inventory has decreased 6.1% from October and 17.5% year-over-year, hinting at a tightening market. Despite the anticipated influx of forced sales post-mortgage forbearance, most homeowners remain in their properties. Zillow forecasts home values will rise 14.3% over the next year, though this growth is expected to slow. Rent growth has also decelerated, with typical rents increasing by 15.2% year-over-year.

Zillow has partnered with Down Payment Resource to enhance homeownership accessibility by integrating down payment assistance program information into its property listings. This feature allows buyers to discover available assistance programs by entering basic information, potentially revealing over 2,000 programs nationwide with an average benefit of $17,000. The initiative aims to empower underrepresented communities facing challenges in saving for down payments amid rising home prices. Zillow's Social Impact Product team developed this feature as part of its broader strategy to promote affordable homeownership.

Santa Claus' home at the North Pole is now valued at $1,031,401, a 19% increase from last year due to rising home values during the pandemic. The Clauses' home features a unique design appealing to pandemic-era buyers, including a hot cocoa tap and gourmet oven. Zillow projects a further 14% appreciation in value next year. The property, listed on Zillow since 2016, is not for sale, and visitors can tour it virtually, enhancing holiday spirit amidst changing lifestyles.

Zillow Group provides strategies for home sellers in a cooling winter market to enhance their chances of selling. Typically, homes are under contract in 30 days during winter compared to 7 days in peak seasons. Recommended preparations include early home improvements, creating a cozy ambiance with appropriate lighting and scents, and enhancing online presence with professional photography and virtual tours. Sellers should highlight cozy features and exercise caution with holiday décor to avoid alienating potential buyers. Zillow emphasizes that effective online marketing is critical as 95% of buyers utilize online tools.

On December 8, 2021, Zillow Group released its housing predictions for 2022, forecasting an 11% growth in home values and 6.35 million existing home sales, marking the highest sales since 2006. Despite a slight cooldown in the market, sellers remain in control due to tight supply and high demand factors. The Sun Belt region continues to attract homebuyers, with trends showing an increase in demand for larger rentals. The renovation market is also predicted to remain strong as homeowners choose to upgrade existing properties over moving.

The U.S. housing market is experiencing a construction boom, with over 1.5 million residential building permits issued, the highest since August 2007. Despite this, a Zillow analysis indicates a shortfall of 1.35 million homes since 2008 due to a decade of underbuilding. Builder activity remains hampered by supply chain issues and labor shortages, with an 8.4% decrease in completed builds year-over-year. With increasing home prices driven by high demand and demographic shifts, experts suggest relaxing zoning laws as a potential solution.

Zillow Group (NASDAQ: Z, ZG) has made substantial headway in winding down its Zillow Offers inventory, selling over 50% of homes intended for resale. The company’s Board has authorized a $750 million share repurchase program to enhance shareholder value and optimize its capital structure. Zillow expects Q4 2021 Homes segment revenue to range between $2.3 billion and $2.9 billion, up from previous estimates of $1.7 billion to $2.1 billion. The wind-down is projected to be cash-flow neutral even after covering $2.9 billion in secured debt.

Zillow forecasts that 2022 will see homeowners focus on enhancing comfort and mental well-being in their living spaces. Key trends include the use of nature-inspired colors, a rise in sustainable home features, and a preference for secondhand furniture. Homeowners are prioritizing functionality and comfort, with a surge in demand for home improvement projects, including creating dedicated workspaces and relaxation areas. Notably, pet-friendly home features will also influence design choices as pet ownership rises.

Zillow Group (NASDAQ: Z, ZG) announced an unsolicited mini-tender offer from TRC Capital to purchase up to 2 million shares of its Class C capital stock at $61.20 per share, which is 4.3% below the stock's last closing price of $63.95 on November 12, 2021. Zillow Group advises shareholders to reject the offer, highlighting that tendering would result in a below-market price and urging caution with mini-tender offers due to potential pitfalls. TRC Capital's offer is contingent on various conditions, including obtaining financing.