Zillow Group Inc - Z STOCK NEWS

Following the early impact of the coronavirus pandemic, the for-sale market has rebounded, but rent growth has significantly slowed, especially in urban areas. Zillow's data indicates that from February to June 2020, annual rent growth in urban areas dropped by two percentage points, while suburban areas saw a 1.4 percentage point decline. Many renters have been financially impacted by unemployment and are moving back home, affecting rental demand. Notably, urban rent growth is stronger in some markets, such as Kansas City and Detroit, while others like Dallas-Fort Worth saw urban decline.

According to Zillow's Weekly Market Report, homes moving from for-sale to pending are up 16.1% year over year, indicating strong buyer demand. However, new listings are down 12.2% year over year, contributing to a 26.3% decrease in total inventory. Homes are selling at a record pace, typically within 14 days. While newly pending sales dropped 1.4% month over month, they continue to outpace last year's figures. List prices rose by 0.3% week over week, now averaging $342,660, 6% higher than a year ago.

Zillow has partnered with D.R. Horton, the largest home builder in the U.S., allowing homebuyers to sell existing homes through Zillow Offers. This collaboration aims to streamline the homebuying process, especially during a surge in new construction fueled by low mortgage rates. D.R. Horton customers can enjoy an extended closing timeline of up to eight months and flexible closing dates for their transactions. Additional benefits include potential cash credits and free moving services, enhancing the overall experience for homebuyers.

Zillow has accelerated the adoption of digital home shopping tools due to the COVID-19 pandemic. The company is launching a self-tour feature across all its properties, enabling buyers to tour homes while minimizing contact. Homes with this feature sold six days faster in Phoenix. Additionally, Zillow is enhancing 3D Home virtual tours with floor plans to improve the shopping experience. Surveys indicate 79% of buyers prefer listings with floor plans. Zillow expects these innovations will become standard in real estate transactions.

Zillow's Weekly Market Report indicates a surge in the housing market with homes going under contract at an accelerated rate. Newly pending sales saw a significant increase of 10.9% week-over-week, although they remain 2.4% below last month. Homes sold last week had a median time on the market of 15 days, matching last week's record. However, new listings fell by 0.2% week-over-week, resulting in a 25.5% decrease in inventory year-over-year. The median sale price rose to $262,600, reflecting a 1% year-on-year increase.

On July 31, over 32 million people will lose the $600 weekly unemployment benefits under the Federal Pandemic Unemployment Compensation (FPUC). A Zillow analysis suggests this will significantly increase rent burdens, especially for Black households. Although the rate of missed rent payments was 12.4% in early July, the expiration of benefits coincides with the end of eviction moratoriums, potentially sparking a housing crisis. Contact-intensive workers, making up 28% of renter households, could face severe cost burdens, with 41% impacted if benefits cease. The current assistance has kept rental payments stable despite record unemployment.

The COVID-19 pandemic significantly impacted New York City's real estate market in Q2 2020, with rental demand plummeting and Manhattan rents falling for the first time since the Great Recession. A record 34.7% of rentals received discounts, and the median asking rent decreased by 6.7%, amounting to $221, while the StreetEasy Manhattan Rent Index fell 0.9% to $3,236. Conversely, interest in outer boroughs surged, with Brooklyn searches up 26% and Queens 24%. Landlords increased virtual tours significantly as remote work trends altered rental priorities.

Zillow's Weekly Market Report reveals a tight housing market with sellers in control. Homes went under contract at record speeds, averaging 20 days on the market, a week faster than last year. Newly pending sales dropped 4%, continuing a trend, while inventory remains critically low, down 22.4% year-over-year. Only 4.1% of listings experienced price cuts, indicating strong demand. The median list price increased to $338,760, up 4.3% year-over-year, driven by more high-end listings.

Zillow Group has resumed buying homes in five additional markets, bringing the total to 20 out of 24 markets for its Zillow Offers program. This move follows a pause on March 23 due to COVID-19. Home sellers in Los Angeles, Riverside, Minneapolis, Cincinnati, and Orlando can now sell directly to Zillow. The company cites a rebound in buyer and seller activity, with web traffic to listings up 41% year-over-year. Zillow is implementing safety protocols developed in partnership with former U.S. Surgeon General Dr. Regina Benjamin to ensure safe transactions.