Zillow latest iBuyer to press pause

Over past month, portal reduced its home inventory as coronavirus impact worsened

TRD NATIONAL /
Mar.March 23, 2020 10:16 AM
Zillow CEO Rich Barton (Credit: Erik (HASH) Hersman via Flickr)

Zillow CEO Rich Barton (Credit: Erik (HASH) Hersman via Flickr)

After watching rivals Opendoor and Redfin drop out of the iBuying game, Zillow Group said Monday that it would also suspend home-buying amid the coronavirus pandemic.

In a statement, co-founder and CEO Rich Barton cited emergency orders in New York, California, Illinois, Louisiana, Ohio and Nevada, which have instructed nonessential businesses to shutter. In New York, Gov. Andrew Cuomo specifically told real estate agents to stop in-person showings and open houses.

“Given the concerns for public safety and rapid developments by governments that restrict local real estate activities, we determined it was prudent to pause our home buying to preserve our capital,” Barton said in the statement. “We plan to restore Zillow Offers to full operations once health concerns pass and local health orders are lifted.”

Although it won’t be purchasing homes, Zillow will continue to sell homes through Zillow Offers, using virtual tours and other technology.

Over the past month, the company slowed its home-buying activity. At the end of 2019, Zillow owned 2,707 homes. As of March 19, it had 1,860 homes.

Barton has previously called iBuying a “moonshot” bet, saying that to ignore it would be an “existential threat.” In 2019, Zillow’s revenue more than doubled to $2.7 billion. Revenue from iBuying was $1.4 billion, compared to $52.4 million in 2018. Zillow’s losses were $305.4 million, up from $119.9 million.

Last week, Redfin, Opendoor and Realogy also suspended home-buying.

In a letter to shareholders, Redfin CEO Glen Kelman cited uncertainty in the market and economy overall. “We remain as committed as ever to giving homeowners the option of an instant offer,” he said, “but only when we can know what a fair price for an offer would be.”


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image

Zillow to pay $50M for StreetEasy

Zillow to pay $50M for StreetEasy
(iStock)

Movie theaters might not come back after all

Movie theaters might not come back after all
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Lennar's Stuart Miller, Rick Beckwitt and Jon Jaffe (Lennar; iStock)

Lennar reports untempered demand for new homes in Q3

Lennar reports untempered demand for new homes in Q3
Eric Wu (left) and Chamath Palihapitiya (Getty, iStock)

Opendoor confirms $4.8 billion IPO

Opendoor confirms $4.8 billion IPO
A lawsuit seeks to dismantle Gov, Andrew Cuomo’s midnight food curfew by arguing coronavirus is not a vampire (Getty; iStock)

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...