Zillow Group Stock Price, News & Analysis

The housing market is stabilizing post-pandemic, with homes selling faster than pre-pandemic but slower than last year. A Zillow analysis reveals that homes typically went pending in 19 days in September, although the median age of inventory rose to 54 days, a 45% increase from last year. With 32% fewer active buyers compared to last year, sellers must competitively price their homes to attract buyers. Markets like Austin and Las Vegas show mixed trends in selling speeds, indicating varied demand based on home types and locations.

The latest Zillow survey highlights that typical monthly rents have reached a record high of $2,084, compelling more people to remain renters as home-buying costs rise. Over one-third of renters find securing a rental more challenging than job hunting. Key strategies to secure rentals include being flexible with move-in dates (34%), paying more upfront (30%), having strong references (29%), applying early (26%), and offering longer leases (23%). These tactics help renters navigate the competitive market and avoid issues like double rent payments.

In September, U.S. home values held steady at $358,283, reflecting a 12.9% increase from last year, yet home sales dropped nearly 30% compared to 2021. High-cost metros, particularly on the West Coast, witnessed significant value declines, with Austin down 8.2%. Mortgage rates, expected to reach around 7%, have stifled buyer activity, with new listings falling 11.4% month-over-month. Despite inventory rising 3% year-over-year, it remains 38% below 2019 levels. Rent growth is moderating, but affordability issues persist, impacting spending on essentials.

First-time home buyers now constitute 45% of all buyers, a significant increase from 37% last year, as reported by Zillow's 2022 Consumer Housing Trends Report. This trend is largely due to repeat buyers pulling back amidst rising mortgage rates. With increased options and bargaining power, first-time buyers are making gains in a challenging market, although home values remain 14.1% higher than last year. Newly pending home sales fell by 29% in August compared to the previous year.

A recent Zillow analysis reveals that home buyers are increasingly considering flood risks when applying for mortgages. Areas with higher flood risk are experiencing more denials and withdrawals, yet home values continue to grow faster in these locations. While flood risks impact mortgage decisions significantly, other climate risks such as fire and drought have negligible effects on lending practices. The findings suggest a shift in buyer behavior, emphasizing the importance of climate risk awareness in the home-buying process.

Zillow Group, Inc. (NASDAQ: Z, ZG) will release its third quarter 2022 financial results after market close on November 2, 2022. A conference call will be hosted that afternoon at 2 p.m. PT / 5 p.m. ET to discuss the results. Interested participants should register in advance to access the live call to mitigate delays. Comprehensive financial information and a link to the live webcast will be available on the company's Investor Relations website.

Zillow's recent survey of housing experts indicates a significant shift towards a buyer's market by the end of 2023, driven by high mortgage rates reducing competition. Key insights from the survey include:

• Southern and Midwestern metros show resilience in home prices, while vacation areas may face declines.
• Rent growth is projected at 5.4% in 2023, outpacing inflation and home price appreciation.
• Despite a slight increase in expected home price appreciation to 9.8%, 67% of panelists express concerns over an overly optimistic outlook.

Zillow Group has launched ShowingTime+, a new integrated brand that combines its leading technology services for real estate professionals. This suite includes ShowingTime, dotloop, Bridge Interactive, and 3D Home tours, aimed at streamlining the real estate transaction process. With the average agent using over 12 software products, ShowingTime+ seeks to reduce transaction friction and enhance client experiences. The platform currently serves over 1 million professionals across the U.S. and Canada.