Zillow Group Inc Stock Price, News & Analysis

SEATTLE, Feb. 8, 2022 /PRNewswire/ -- A Zillow survey indicates that 75% of recent home buyers have at least one regret about their purchase. The most common regrets include buying homes needing more work (32%) and homes that are too small (31%). Despite the challenges of the current market, where inventory is low and home values surged nearly 20% in 2021, buyers often had to compromise. Zillow emphasizes the importance of understanding needs versus wants during the home-buying process, using tools like interactive floor plans and location metrics.

A recent Zillow survey reveals that 80% of Americans love their homes. However, 34% of recent movers find it harder to buy a house than to find a spouse. The survey indicates that women enjoy home shopping more than men (62% vs. 39%). While 76% believe they can successfully use an app to find a home, only 24% feel the same about dating. Most homeowners cherish memories (82%) and location (77%) as reasons for loving their homes. Despite challenges, shoppers can successfully navigate the competitive housing market using tools like Zillow's interactive floor plans.

In 2021, the U.S. housing market gained a record $6.9 trillion, boosting total value to $43.4 trillion. This marked a 19.6% increase in home values, the highest since 2001. Zillow economists predict continued strong demand in 2022. California holds 21.3% of the national housing value, increasing by $1.4 trillion. New York saw its market share dip to 7.3%. Notably, states like Florida, Texas, and Colorado expanded their share in the housing market, while New York experienced the largest decline.

Zillow Group (NASDAQ: Z, ZG) will release its fourth quarter 2021 financial results after market close on February 10, 2022. A conference call to discuss these results is scheduled for 2 p.m. PT / 5 p.m. ET the same day. The company invites participants to pre-register for the call to minimize delays. Information on accessing the live webcast and its recorded replay will be available on its Investor Relations website.

The Zillow home market report reveals demand continues to outpace dwindling inventory, leading to record low home listings at approximately 923,000, a drop of 11.1% in December. Monthly home value appreciation accelerated to 1.4%, the first increase since July, with typical home values rising to $320,662, an increase of 19.6% from December 2020. However, the ongoing rise in mortgage rates and uncertainties surrounding post-pandemic work arrangements may pose challenges. Rents also surged, increasing 15.7% year-over-year, but monthly growth slowed to 0.7%, reflecting a deceleration in the rental market.

On January 13, 2022, a Zillow analysis of HMDA data revealed that Black mortgage applicants face a denial rate 84% higher than white applicants, up from 74% in 2019. Currently, 19.8% of Black applicants are denied mortgages, compared to 10.7% for white applicants. The disparities are most pronounced in Mississippi, Louisiana, Arkansas, and South Carolina. Although there have been improvements in Black homeownership since the Great Recession, challenges remain, including credit access barriers and economic impacts from the pandemic.

An outside panel of economists and housing experts is divided on the housing market outlook for 2022, with 41% predicting sales growth, 41% forecasting a decline, and 18% expecting stability. In 2021, approximately 6.32 million homes were sold, the highest since 2006. Concerns over affordability, notably a 19.3% year-over-year increase in home values, could hinder sales. Conversely, increased inventory may boost sales. Experts anticipate home values to grow 6.6% in 2022 and 23.5% over five years. The range of predictions is wide, highlighting uncertainty in the market.

Zillow Group (NASDAQ: Z, ZG) announced the appointment of Jenny Arden as the company's first Chief Design Officer (CDO) on January 7, 2022. Arden brings over 20 years of experience from companies like Nike, Lyft, and Airbnb, where she led creative and design teams. Her role will focus on enhancing the customer experience across Zillow's platforms. COO Jeremy Wacksman emphasized the need for integrated experiences as more people utilize Zillow for real estate needs, highlighting the importance of design in connecting with customers.