Zillow Group Stock Price, News & Analysis

Zillow and Yelp's new Cityness Index identifies top U.S. suburbs that balance affordability and urban amenities. The demand for these locations has surged due to remote work trends, with significant increases in moving quotes reported. Waterbury, Connecticut, topped the list, followed by Lowell, Massachusetts, Joliet, Illinois, Sunrise, Florida, and Pasadena, Texas. Notably, home values in these suburbs are significantly lower than in their nearby major cities, making them attractive options for buyers seeking city-like experiences without the high costs.

The Zillow Weekly Market Report highlights the current U.S. housing market, showing strong seller control with prices at record highs. However, recent data indicates a potential market slowdown, with newly pending listings rising 22.2% year-over-year but declining 4.6% month-over-month. Inventory continues to decrease, now 35% below 2019 levels, marking the largest drop in years. The median sale price climbed 9.3% year-over-year to $284,625, but monthly growth is slowing. Consumer confidence improved, although unemployment claims remain elevated.

Zillow's latest Market Report forecasts that home sales will peak this fall before tapering off in 2021, yet remain above pre-pandemic levels. Seasonally adjusted home prices are expected to rise by 4.8% between August 2020 and August 2021, up from a previous estimate of 3.8%. Newly pending sales are up 21.8% compared to last year, despite a slight month-to-month decline. However, total inventory has dropped 34.6% year-over-year, leading to a median sale price increase to $284,000, a substantial 8.7% rise from last year.

The Zillow Home Price Expectations Survey indicates a 3.7% increase in home prices for 2020, contradicting earlier predictions of a 0.3% decline. Panelists also raised their 2021 forecast to 2.7%, showing heightened optimism. However, long-term concerns linger due to expected high unemployment rates. Approximately 44% of experts believe the U.S. will return to 3.5% unemployment by the decade's end. This optimistic outlook is attributed to low inventory and strong demand, although future growth estimates for 2022-2024 have been slightly downgraded.

In August, Brooklyn witnessed a significant surge in home sales, with pending contracts up 38.7% year-over-year to 735 homes, surpassing last year by 205 homes. This contrasts with declines in Manhattan and Queens, where sales fell by 6.0% and 4.3%, respectively. The surge is notable across all price tiers in Brooklyn, especially in lower-priced neighborhoods. However, the luxury segment saw a slight decrease. Meanwhile, inventory in Brooklyn rose to 5,830 homes, marking the highest levels since October 2019.

Zillow Group (NASDAQ:ZG, Z) announced plans to enhance its Zillow Offers service starting January 2021. Customers in Atlanta, Phoenix, and Tucson will have direct interactions with licensed Zillow Homes employees for a more streamlined home-selling experience. This move aims to integrate services, including mortgage and escrow, into a single platform, reducing transaction friction. Zillow Offers, launched in 2018, allows customers to sell homes directly, bypassing traditional listing processes. The company’s transition to MLS IDX feeds will also provide comprehensive listing information to its 200 million monthly visitors.

Zillow has launched a new nationwide service on National Voter Registration Day that aids renters in registering to vote or verifying their registration status. The service prompts renters to register through Zillow Rentals at the lease signing stage, directing them to a dedicated registration page. This initiative addresses barriers to voter registration, with the company emphasizing its commitment to facilitate smoother transitions for renters. Additionally, Zillow offers its employees paid time off to vote and has partnered with coalitions to boost voter participation.