Defunct iBuying Program - Zillow Sells Half Its Inventory

Dated: December 13 2021

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Zillow abruptly announced last month that it was ending Zillow Offers. That put thousands of properties it already owned or had agreed to buy in limbo.

At the end of the third quarter, Zillow had 9,790 homes in its inventory and 8,172 homes under contract. But a recent bulk sale to an institutional investor has sparked concern in the industry over how many more of these homes could go to institutional investors.

In November, The Wall Street Journal reported that Zillow sold 2,000 of its homes to Pretium Partners, a New York City investment firm. Pretium owns about 70,000 single-family home rentals across 20 markets. Zillow officials said they are considering many options. “We are pleased with the significant Zillow Offers inventory wind-down progress we've made in such a short time,” Zillow Group CFO Allen Parker said in a recent statement. “We will continue to be disciplined in our inventory wind-down strategy and evaluate a variety of options to best optimize net cash flows to the company.”

(VIDEO) "The Truth About Zillow Zestimates"

In November, Zillow announced it was shutting down Zillow Offers and eliminating a quarter of its workforce. At the time, CEO Rich Barton pointed to “unpredictability in forecasting home prices far exceeds what we anticipated” and said Zillow Offers was causing “too much earnings and balance-sheet volatility” for the company.

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Kenneth Manesse

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