ZILLOW GROUP INC - ZG STOCK NEWS

Zillow's Weekly Market Report reveals robust home price momentum into early October, with a median list price increase of 10.9% year-over-year, reaching $345,225. Despite a seasonal slowdown in pending sales, down 2.2% weekly, the extremely low inventory continues to favor sellers. Total inventory has decreased by 35.7% compared to last year. While buying activity cools, strong demand persists amidst dwindling supply. The report highlights a significant decline in new listings, down 18.1% year-over-year. Economic uncertainty looms as stimulus negotiations stall, potentially impacting mortgage rates.

The COVID-19 pandemic has resulted in significant economic setbacks for women, leading to higher unemployment and increased housing insecurity. A new analysis by Zillow reveals that women's unemployment claims surged by 1,368% year-over-year in May 2020, compared to much lower rates for men. Women, particularly women of color, face a greater risk of being cost-burdened and losing housing stability, with 45% of female renters spending over 30% of their income on housing. Experts call for direct rental assistance and long-term policy changes to address the needs of women during this crisis.

Zillow and Yelp's new Cityness Index identifies top U.S. suburbs that balance affordability and urban amenities. The demand for these locations has surged due to remote work trends, with significant increases in moving quotes reported. Waterbury, Connecticut, topped the list, followed by Lowell, Massachusetts, Joliet, Illinois, Sunrise, Florida, and Pasadena, Texas. Notably, home values in these suburbs are significantly lower than in their nearby major cities, making them attractive options for buyers seeking city-like experiences without the high costs.

The Zillow Weekly Market Report highlights the current U.S. housing market, showing strong seller control with prices at record highs. However, recent data indicates a potential market slowdown, with newly pending listings rising 22.2% year-over-year but declining 4.6% month-over-month. Inventory continues to decrease, now 35% below 2019 levels, marking the largest drop in years. The median sale price climbed 9.3% year-over-year to $284,625, but monthly growth is slowing. Consumer confidence improved, although unemployment claims remain elevated.

Zillow's latest Market Report forecasts that home sales will peak this fall before tapering off in 2021, yet remain above pre-pandemic levels. Seasonally adjusted home prices are expected to rise by 4.8% between August 2020 and August 2021, up from a previous estimate of 3.8%. Newly pending sales are up 21.8% compared to last year, despite a slight month-to-month decline. However, total inventory has dropped 34.6% year-over-year, leading to a median sale price increase to $284,000, a substantial 8.7% rise from last year.

The Zillow Home Price Expectations Survey indicates a 3.7% increase in home prices for 2020, contradicting earlier predictions of a 0.3% decline. Panelists also raised their 2021 forecast to 2.7%, showing heightened optimism. However, long-term concerns linger due to expected high unemployment rates. Approximately 44% of experts believe the U.S. will return to 3.5% unemployment by the decade's end. This optimistic outlook is attributed to low inventory and strong demand, although future growth estimates for 2022-2024 have been slightly downgraded.

In August, Brooklyn witnessed a significant surge in home sales, with pending contracts up 38.7% year-over-year to 735 homes, surpassing last year by 205 homes. This contrasts with declines in Manhattan and Queens, where sales fell by 6.0% and 4.3%, respectively. The surge is notable across all price tiers in Brooklyn, especially in lower-priced neighborhoods. However, the luxury segment saw a slight decrease. Meanwhile, inventory in Brooklyn rose to 5,830 homes, marking the highest levels since October 2019.

Zillow Group (NASDAQ:ZG, Z) announced plans to enhance its Zillow Offers service starting January 2021. Customers in Atlanta, Phoenix, and Tucson will have direct interactions with licensed Zillow Homes employees for a more streamlined home-selling experience. This move aims to integrate services, including mortgage and escrow, into a single platform, reducing transaction friction. Zillow Offers, launched in 2018, allows customers to sell homes directly, bypassing traditional listing processes. The company’s transition to MLS IDX feeds will also provide comprehensive listing information to its 200 million monthly visitors.