Zillow’s decision to pause its home-buying business, Zillow Offers, has led to some speculation the housing market might not be very healthy.
Zillow said its decision was based on a backlog of renovations, labor shortages and other operational delays.
The Seattle-based company stopped buying early in the pandemic when there was uncertainty in the market. Some analysts have suggested Zillow is again getting ready for a change in the market.
“Is it possible that Zillow is seeing something in their data … that may be on the margin makes them a little bit nervous about holding inventory right now?” Tom White, an internet research analyst with D.A. Davidson, told MarketWatch.
Q: Is Zillow Offers’ failure a sign there is something wrong with the real estate market?
Austin Neudecker, Weave Growth
YES: Home prices increased faster in the past 10 years than in the decade preceding the 2008 crash. While I believe San Diego is a fantastic long-term…