In the News: Zillow, Generational Competition, and Pending Home Sales
With Zillow no longer iBuying homes, what does that mean for the market? We look into this and two other headlines about generational competition in the market and pending home sales.
Have you heard the news? We talk through three real estate-related headlines and see what Angie has to say for the Triangle market on today’s podcast.
Zillow was one of the biggest players when it came to iBuying, but recently announced that they are no longer going to be an iBuyer. The news came as a shock to many, but they were overpaying for homes in order to get market share and losing hundreds of millions of dollars a year. This will result in layoffs at Zillow and a shift in the business model. OpenDoor, another iBuyer, had a bit of fluctuation in their stocks following that announcement as well. The iBuying model has been on and off for a few years, making it possibly a less reliable model.
Another headline we found was all about millennials and boomers fighting for some of the same homes on the market. What may be considered a starter home to a millennial is also an attractive home to downsize into for a boomer. Angie agrees that this has been a problem in our local market. Boomers may have a harder time winning these homes because they are less willing to overpay to buy the home.
Finally, September numbers from the real estate market indicate that pending home sales are down compared to a year ago. This typically happens around this time as many will plan to try again in the spring. Angie points out that there is also a lower inventory.
Listen to the entire episode or skip ahead using the timestamps below.
0:38 - In the News: Zillow getting out of the iBuying business.
7:37 - In the News: Baby boomers and millennials competing for the same homes in the market.
10:54 - In the News: Pending home sales are down compared to a year ago.
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