The Real Deal New York

Barclays downgrades Zillow over fears of falling web traffic

Financial services firm warns of “drastic” year-over-year decline

April 07, 2015 05:52PM


Zillow’s Spencer Rascoff and Trulia’s Paul Levine

Barclays has downgraded Zillow Group amid fears of slowing web traffic for Zillow and Trulia.

The British financial services firm downgraded Zillow Group to Equal-Weight from Overweight on April 6, warning of a “drastic” year-over-year decline in traffic growth for Zillow and Trulia and indicating the company’s market is saturated, according to HousingWire.

Analysts expressed concern over Zillow’s recent move to cease reporting monthly traffic trends as of March. Zillow’s numbers for January 2015 indicated a 24 percent increase in traffic growth from the previous year, compared to traffic growth of 52 percent in January 2014.

“Due to the complexity involved with tracking metrics across newly acquired brands and multi-platform users across mobile apps, mobile web, and desktop, beginning in March 2015, Zillow will no longer release its monthly unique metrics on the Zillow Investor Relations page,” a Zillow spokesperson told HousingWire.

While Zillow and Trulia recently announced a “record-setting” number of listing agreements with services around the country – adding 33 new multiple listing services in total – Barclays said it expects the company is cutting deals at deep discounts with large brokerages, which could hurt near-term revenues. [HousingWire] — Rey Mashayekhi

  • Bob the Broker

    Of course the web traffic is going to fall as more and more people realize the information is false and way behind the times. Brokers constantly get calls and emails from Zillow and Trulia for apartments that I’ve already sold that Zillow and Trulia are still marketing as on the market. People are starting to realize that those phony “Zestimates” are just what they are made up numbers. I read the Zillow book and it’s all about algorithms and what they think and are guessing the market is like. A flash in the pan and they will be gone soon.

    • Broker broker

      couldn’t have said it any better. good thing they acquired streeteasy (which also isn’t always accurate). Its their lifeline in nyc at the moment.

      • Crian Bashman

        I do think that the streeteasy listings have slipped since acquired. However, it is still good for the integration with Acris.

        • Bob the Broker

          I agree. I used to swear by streeteasy but since Zillow’s acquisition they HAVE slipped and they now ALLOW brokers to PAY to be the building expert even if other brokers sold or rented a lot more in that building.

  • Fan

    Streeteasy is now Zillow – there are no two ways about it. Streeteasy was a trustworthy source for the public up until Zillow acquired them. They just recently removed the Top Agent section for each building and are now charging brokers an incredible amount of money to be known as “Building Experts”. All it takes to be an “expert” is doing one-two deals in the building. What a joke! On top of that, Zillow bombards you with emails and people actually believe Zestimates which should be illegal. I am really hoping makes a big push to take over New York. It’s the perfect time for them to do so.

    • Angie the Agent


    • Dave F

      Have you used’s website or apps for NYC rentals or sales? Unless Rupert and Realtor perform a 180, I don’t see how they compete for the NYC market.

      None of the major nationals do well in this city for a reason including Zillow, Trulia,, ApartmentGuide,, you name it. And RedFin has seemingly given up altogether on NYC.

      This market requires it’s own unique implementation, which Zillow recognized when buying SE.

    • BH

      Zillow is a pile of shit. They ruined Streeteasy, and now are even promoting it all over the Subway. How the F*ck can we compete with that now?
      Used to be a great source for agents to browse listings from other agents, but now they’re doing everything possible to take the power away from the agent and forcing us to pay a monetary value for any presence on the site.

  • durhill

    Could this be why, all about accuracy