Zillow Group, Inc. reports developments across its real estate technology platform, which connects consumers with listings, agents, loan officers, rental housing providers and other real estate professionals. Recurring company updates cover residential revenue, rentals, mortgage origination through Zillow Home Loans, for-sale marketplace activity, agent software tools, New Construction, Zillow Showcase and pre-market listing products such as Zillow Preview.
The company also publishes housing-market research based on Zillow data, including home value, rent, inventory, buyer-engagement and listing-speed measures. News frequently references Zillow brands and tools used across shopping, renting, buying, selling and financing homes, including Zillow, Trulia, StreetEasy, HotPads, ShowingTime, dotloop and related rental and closing services.
Zillow has launched innovative 3D Home interactive floor plans that integrate rich media for home shoppers. This new technology allows users to navigate listings seamlessly, combining panoramic photos with AI-generated floor plans. Currently available in 25 markets, this update aims to enhance online home shopping, particularly in response to increased demand during the pandemic. The number of 3D Home tours published has tripled from 2019 to 2020, indicating growing acceptance among buyers and agents. The new feature is expected to improve buyer engagement by showcasing properties more effectively.
On February 16, 2021, Zillow shared insights gleaned from selling over 10,000 homes, advising homeowners on home improvements before listing. Key recommendations include choosing neutral paint colors, repairing faucets and fixtures, and addressing minor repairs to enhance appeal. Zillow's approach focuses on cost-effective enhancements rather than extensive renovations. They emphasize the importance of online presentation, offering advanced digital tools, and a seamless experience through Zillow Offers and Zillow Premier Agent services.
Zillow Group has announced a definitive agreement to acquire ShowingTime.com, Inc. for $500 million. This strategic move aims to enhance the home showing experience by leveraging ShowingTime's leading scheduling technology, which has facilitated over 50 million showings in 2020. The acquisition aligns with Zillow's commitment to revolutionize real estate transactions through improved digital solutions. ShowingTime will continue to operate as an open platform, maintaining its data privacy policies while expanding its services to a wider network of real estate professionals.
Zillow Group reported a fourth-quarter revenue of $789 million, exceeding the high end of expectations. For full-year 2020, the company achieved a 22% revenue growth despite early COVID-19 challenges. Net income for Q4 was $46 million, while the full year's loss was $162 million. Notable improvements were seen in the IMT segment, driving a total Adjusted EBITDA of $170 million for Q4. Traffic reached a record 201 million unique users in Q4, with a total of 9.6 billion visits for the year. Cash reserves stood at $3.9 billion.
Mid-sized markets are witnessing a surge in urban home values, especially in the Midwest, according to a Zillow analysis. Urban home values in cities like St. Louis and Indianapolis are growing faster than suburban values. Nationwide, urban home value growth was 8.8%, nearly matching the suburbs at 8.7%. While suburban rental growth increased to 5.2%, urban rents fell to 1.5%. Zillow expects urban rent growth to recover as economies reopen. The pandemic has shifted buyer preferences, with demand for suburban living and affordable urban homes rising significantly.
Zillow's latest analysis highlights a robust housing market fueled by historically low mortgage rates and increased demand from millennials. The company predicts a 21.9% increase in sales for 2021, the highest in almost 40 years, alongside a 10.5% rise in home values by December. Buyers are advised to act quickly; delays could lead to higher monthly payments due to rising mortgage rates and appreciating home values. Current average mortgage rates are 2.68%, with potential payments escalating significantly if rates and home prices rise.
Zillow has enhanced its Local Legal Protections tool to include source of income and voucher discrimination protection data on rental listings, addressing discrimination against tenants using various payment methods. As of December 2020, approximately 49.3% of rental listings fall within areas that prohibit such discrimination. Zillow aims to empower renters and educate landlords on local laws, improving access to housing for all.
Zillow Group (NASDAQ: Z, ZG) will present at the Goldman Sachs Technology & Internet Conference on Feb. 11, 2021. Co-founder and CEO Rich Barton will participate in a fireside chat at 1:30 p.m. PT / 4:30 p.m. ET. The event will be available for live streaming and replay on the company's Investor Relations website.
Zillow continues to innovate in real estate, enhancing the buying, selling, and financing experience for customers.
In 2020, U.S. housing gained nearly $2.5 trillion in value, the highest annual increase since 2005. The total value of U.S. housing reached $36.2 trillion. Factors such as strong demand, low mortgage rates, and a shift to remote work fueled this growth, with Zillow anticipating a potentially stronger year in 2021. California alone accounts for 21.4% of the nation's housing value, worth $7.8 trillion. While most states saw value increases, Alaska recorded a 1.8% decline, attributed to low new construction and falling prices.
Zillow Group, which is transforming the real estate market, will release its fourth quarter and full year 2020 financial results on February 10, 2021, after market close. A conference call is scheduled for 2 p.m. PT / 5 p.m. ET to discuss the results. Investors can view information regarding the results, including links to the live webcast, on their Investor Relations website. Zillow Group is focused on simplifying the process of buying, selling, renting, and financing homes across the U.S.