Zillow's real-time affordability tool helps shoppers quickly find homes within their budget
Zillow has launched BuyAbility, a real-time affordability tool on their app that helps home shoppers instantly determine if they can afford and qualify for specific listings. The tool, powered by Zillow Home Loans, provides personalized estimates based on users' financial information and current mortgage rates. When mortgage rates shift from 7% to 6%, a median-income household's buying power increases from $380,000 to $420,000 with a 20% down payment. According to Zillow data, 79% of recent buyers prioritize staying within budget, and in September, 27.3% of listed homes were affordable for median-income households, up from 22.7% in May when rates peaked above 7%.
Zillow ha lanciato BuyAbility, uno strumento di valutazione dell'accessibilità in tempo reale nella loro app che aiuta gli acquirenti di case a determinare immediatamente se possono permettersi e qualificarsi per specifiche inserzioni. Lo strumento, alimentato da Zillow Home Loans, fornisce stime personalizzate basate sulle informazioni finanziarie degli utenti e sui tassi ipotecari attuali. Quando i tassi ipotecari scendono dal 7% al 6%, il potere d'acquisto di una famiglia con un reddito medio aumenta da $380.000 a $420.000 con un acconto del 20%. Secondo i dati di Zillow, il 79% degli acquirenti recenti dà priorità al rimanere entro il budget, e a settembre, il 27,3% delle case elencate erano accessibili per le famiglie a reddito medio, in aumento rispetto al 22,7% di maggio, quando i tassi avevano superato il 7%.
Zillow ha lanzado BuyAbility, una herramienta de asequibilidad en tiempo real en su aplicación que ayuda a los compradores de viviendas a determinar al instante si pueden permitirse y calificar para listados específicos. La herramienta, impulsada por Zillow Home Loans, proporciona estimaciones personalizadas basadas en la información financiera de los usuarios y las tasas hipotecarias actuales. Cuando las tasas hipotecarias bajan del 7% al 6%, el poder adquisitivo de un hogar con ingresos medianos aumenta de $380,000 a $420,000 con un pago inicial del 20%. Según datos de Zillow, el 79% de los compradores recientes priorizan mantenerse dentro del presupuesto, y en septiembre, el 27.3% de las casas listadas eran asequibles para hogares de ingresos medianos, en comparación con el 22.7% en mayo, cuando las tasas alcanzaron más del 7%.
질로우(Zillow)는 앱에 실시간 주택 구매 가능성 도구인 BuyAbility를 출시했습니다. 이 도구는 주택 구매자들이 특정 매물에 대해 자신이 구매할 수 있는지 및 자격이 되는지를 즉시 확인할 수 있도록 도와줍니다. 질로우 홈론(Zillow Home Loans)이 지원하는 이 도구는 사용자 재무 정보 및 현재 모기지 금리를 기반으로 개인화된 추정을 제공합니다. 모기지 금리가 7%에서 6%로 하락하면, 중간 소득 가구의 구매력은 20%의 계약금을 지불할 경우 $380,000에서 $420,000로 증가합니다. 질로우 데이터에 따르면, 최근 구매자의 79%는 예산 내에서 지출하는 것을 우선시하며, 9월에는 나열된 주택의 27.3%가 중간 소득 가구에 적합한 가격이었으며, 이는 5월에 7% 이상의 금리에서 22.7%에서 증가한 수치입니다.
Zillow a lancé BuyAbility, un outil d'accessibilité en temps réel sur leur application qui aide les acheteurs de maison à déterminer instantanément s'ils peuvent se permettre et se qualifier pour des annonces spécifiques. L'outil, alimenté par Zillow Home Loans, fournit des estimations personnalisées basées sur les informations financières des utilisateurs et les taux hypothécaires actuels. Lorsque les taux hypothécaires passent de 7 % à 6 %, le pouvoir d'achat d'un ménage à revenu médian augmente de 380 000 $ à 420 000 $ avec un acompte de 20 %. Selon les données de Zillow, 79 % des acheteurs récents priorisent le respect de leur budget, et en septembre, 27,3 % des maisons listées étaient abordables pour les ménages à revenu médian, contre 22,7 % en mai, lorsque les taux avaient dépassé 7 %.
Zillow hat BuyAbility eingeführt, ein Echtzeit-Werkzeug zur Erschwinglichkeit in ihrer App, das Hauseinkäufern hilft, sofort zu bestimmen, ob sie sich bestimmte Angebote leisten und dafür qualifizieren können. Das Tool, das von Zillow Home Loans unterstützt wird, bietet personalisierte Schätzungen basierend auf den finanziellen Informationen der Nutzer und den aktuellen Hypothekenzinsen. Wenn die Hypothekenzinsen von 7% auf 6% sinken, steigt die Kaufkraft eines Haushalts mit mittlerem Einkommen von 380.000 $ auf 420.000 $ bei einer Anzahlung von 20%. Laut Zillow-Daten legen 79% der aktuellen Käufer Wert darauf, im Budget zu bleiben, und im September waren 27,3% der gelisteten Häuser für Haushalte mit mittlerem Einkommen erschwinglich, gegenüber 22,7% im Mai, als die Zinsen über 7% lagen.
- Introduction of innovative real-time affordability tool enhancing user experience
- Tool potentially increases user engagement and conversion rates for Zillow Home Loans
- Expansion of services in mortgage lending segment strengthening market position
- Tool not available in New York state, limiting market reach
- Currently only available on mobile app, not desktop platform
Insights
This new affordability tool represents a significant strategic move for Zillow to strengthen its position in the mortgage and home-buying ecosystem. The BuyAbility feature addresses a critical pain point in the home-buying process while potentially increasing lead generation for Zillow Home Loans, their mortgage division.
The tool's integration of real-time mortgage rates and personalized financial data creates a competitive advantage over traditional home search platforms. By helping buyers focus only on attainable properties, Zillow could see improved conversion rates and increased engagement with their mortgage services. This aligns with their strategy to monetize the entire real estate transaction journey.
The timing is particularly strategic, launching when
The launch of BuyAbility addresses a important market need, as evidenced by the
The nationwide rollout (excluding New York) demonstrates strong market potential. By simplifying the pre-qualification process and reducing friction in the home search journey, Zillow could see increased user retention and higher quality leads for their mortgage business. This positions them to capture a larger share of the first-time homebuyer market, particularly millennials who prefer digital solutions.
This first of its kind personalized tool will change how buyers shop for homes
BuyAbility is the tool for this moment. Homeownership can feel out of reach for aspiring first-time buyers who are daunted by today's high prices and may not feel ready to share their personal financial details with a loan officer. Volatile mortgage rates have made it difficult to know how much home they can afford, and their ability to qualify for a loan can change from day to day. BuyAbility is powered by real-time mortgage rates from Zillow Home Loans, and makes updates whenever rates move up or down, or when a prospective buyer improves their credit score, their debt-to-income ratio or saves more for their down payment.
"Mortgage rates have been on a wild ride this year," said Orphe Divounguy, a senior economist for Zillow Home Loans. "With improving inflation numbers and more balanced economic activity, mortgage rates could ease slightly heading into the new year. That will mean more affordability and more options for home shoppers. Buyers will be in a stronger position to act quickly when the right home enters their BuyAbility, bringing them one step closer to the American Dream of homeownership."
Shoppers can access BuyAbility from the Home Loans tab on the Zillow app. They enter their basic financial information, including their income, credit score, monthly debt payments, amount saved for a down payment and the amount they're comfortable spending each month. Within seconds, they get their BuyAbility: an estimate of the home price they are likely to qualify for, and a suggested budgeted maximum price based on their desired monthly payments. When they browse Zillow, listings will be clearly tagged when they are within that shopper's BuyAbility, providing instant clarity on whether they are likely to qualify for a loan on that home.
BuyAbility accounts for the one major factor that basic mortgage calculators neglect: the interplay between mortgage rates and a buyer's personal financial situation. Shoppers with higher credit scores or a lower debt-to-income ratio will qualify for a lower mortgage rate, which has a huge impact on their buying power. Assuming a
A vast majority of home buyers today are prioritizing budget above all else. Zillow data finds nearly
That significant shift shows how quickly homes can go from being unaffordable to affordable in today's market. BuyAbility gives shoppers a competitive edge by keeping them up to date on exactly what they can afford at any given time.
BuyAbility is currently available in every state but
About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow Group, Inc.
FAQ
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