ZILLOW GROUP INC - ZG STOCK NEWS

SEATTLE, Oct. 14, 2021 /PRNewswire/ -- A Zillow analysis reveals that the ongoing housing demand is influenced by demographics rather than a pandemic-driven surge. Millennials and baby boomers are the primary buyers, with median buyer age rising from 40 to 44 since 2009. Despite millennials being the largest group, older buyers are more active, contributing to competition. Baby boomers leverage home equity, giving them an edge. Home values rose 31.2% from 2009 to 2019, further intensifying the market. Recent trends show a decline in first-time homebuyers, down from 46% in 2018 to 37% in 2021.

Zillow's HBCU Housing Hackathon attracted over 150 students from Historically Black Colleges and Universities, focusing on solutions for at-risk renters and first-time home buyers. The first place was awarded to a team from Morehouse College, winning $20,000 for their app, which predicts rent and utility increases. Zillow also donated $25,000 to Morehouse's computer science program. The event highlighted innovative projects, with other top teams focusing on financial literacy and blockchain solutions. All top teams received additional prizes, including laptops and internship opportunities at Zillow.

Zillow Group (NASDAQ: Z, ZG) has completed its acquisition of ShowingTime, a leading online scheduling platform for home showings, for $500 million. This acquisition is significant for enhancing Zillow's capabilities in the real estate market, particularly in simplifying the home touring process. Over the past year, ShowingTime facilitated 63 million showings through its platform. Zillow Group plans to invest in ShowingTime to improve its technology and maintain its operational independence.

The Great Reshuffling presents both challenges and opportunities for housing affordability in the U.S., according to a new Zillow analysis. While remote workers benefit from lower costs in affordable areas, in-person occupations like teaching and nursing face escalating rent pressures. Over a decade of underbuilding has limited housing supply, fueling record price increases. The analysis highlights that teachers and nurses often pay significant portions of their income on rent, with many forced to choose smaller, older homes. Communities are urged to ease zoning restrictions to increase housing supply and improve affordability.

Zillow's Consumer Housing Trends Report reveals that despite a challenging housing market, buyers are adapting successfully. The average buyer submitted just two offers before acceptance, an increase from previous years. Most buyers (88%) utilized home inspections prior to closing, indicating a cautious approach. First-time buyers face more challenges than repeat buyers, primarily due to smaller down payments. The report also highlights a growing preference for virtual tours, with buyers increasingly confident in making offers based on them. Signs of a cooling market suggest more manageable conditions for buyers ahead.

The Zillow Home Price Expectations Survey predicts an increase in housing inventory, primarily from existing homeowners selling their properties. This shift is expected to stabilize the market as homeowners exit forbearance programs. The panel forecasts that existing homeowners will contribute 39.7% of the housing supply, while new construction will represent 22.5%. Despite recent strong price appreciation reaching 17.7% annually, the market is anticipated to balance out as new listings rise.

The latest Zillow market report for August reveals moderated growth in home values and rents, indicating a shift toward a more balanced housing market. Home values increased by 1.75% month-over-month, down from 1.97% in July, marking the third-largest monthly growth recorded. Inventory rose 4.1% over July, reducing the year-over-year deficit to 22.7%. The typical U.S. home value is now $303,288, reflecting a 17.7% annual increase. Additionally, monthly rent growth decelerated to 1.7%, despite a record 11.5% annual appreciation.

Zillow's latest research reveals that nearly 40% of U.S. workers are uncertain about their return to in-person work, affecting decisions about relocation. A significant 84% prefer remote work flexibility, with 44% desiring full-time remote options. Millennials and Gen Z are particularly willing to switch jobs for more favorable work arrangements. Zillow notes that this shift could enhance economic opportunities and housing affordability, as remote workers prioritize larger, more affordable homes. The relocation rate surged by over 45% after Zillow implemented a permanent flexible work policy.

According to a recent Zillow analysis, iBuyers sold over 15,000 homes in Q2 2021 for nearly $5.3 billion, marking an all-time high and a substantial increase from Q1. iBuyers now hold 1% market share of U.S. home sales, with significant activity in cities like Atlanta, Phoenix, and Dallas. The analysis highlights the convenience of iBuying services for homeowners, who are increasingly opting for this method even in a competitive market. Notably, homes sold by iBuyers typically fetched 9.6% more than their purchase price, indicating a healthy appreciation trend.