Zillow Group reports on a real estate technology platform that connects consumers with homes, rentals, real estate agents, loan officers and housing providers. Company updates commonly cover financial results across residential, rentals, mortgages and for-sale activity, along with products such as Zillow Showcase, Zillow Home Loans, Zillow Rentals, Zillow New Construction, ShowingTime, dotloop and agent software tools.
News also includes Zillow housing-market research, including home value, rent, inventory, affordability and buyer-engagement data. Other recurring themes include pre-market listing products such as Zillow Preview, brokerage participation, marketplace transparency, AI-enabled search tools and services for renters, buyers, sellers and real estate professionals.
According to Zillow's Weekly Market Report, intense buyer demand continues to drive home prices upward and reduce time on the market. Homes are selling in just 12 days, 17 days faster than last year, with pending sales up by 19.7% year-over-year. Despite this, available inventory has decreased for 23 consecutive weeks, down 37.4% from last year. Median list prices have risen 11.8% year-over-year, with current median sale prices at $289,625, reflecting a 12.5% increase over 2019. The overall market remains robust as new listings and inventory continue to decline.
Zillow Group reported Q3 2020 consolidated revenue of $657 million, exceeding its outlook, with a net income of $40 million. The strong performance was attributed to robust demand for housing and digital engagement, with a record 236 million average monthly unique users. Despite a 51% decline in Homes segment revenue, the IMT segment rose by 24% year-over-year. Adjusted EBITDA reached $152 million, indicating profitable growth. The company ended the quarter with $3.8 billion in cash and investments, its highest ever.
The housing market is experiencing seasonal cooling after a robust summer, as reported by Zillow. Year-over-year list prices have stabilized at 11.7% above 2019, while newly pending sales rose 19.3% compared to last year, though saw a slight decline of 1.5% week-over-week. Inventory continues to dwindle, down 37.2% year-over-year. The median list price remains steady at $346,080, and the median sale price is up 11.4% since 2019. Many potential sellers are hesitant to enter the market, anticipating better price conditions in the future.
Monthly mortgage payments for U.S. homeowners are more affordable due to record-low mortgage rates, recently dipping to 2.8%. Homeowners paid 17.5% of their income towards mortgages in September, down from 19.6% two years earlier. However, home prices have surged 38.3% since 2014, greatly outpacing income growth of 18.8%, making down payments a significant challenge for potential buyers. A typical home now costs over three times the median income, the highest since 2014. Zillow anticipates a 7% increase in home values over the next year, further complicating affordability.
A recent Zillow survey reveals that 34% of potential home sellers are hesitant to enter the market due to pandemic-related uncertainties. Key factors include financial instability (31%) and changes in employment (27%). The survey shows that nearly 40% believe waiting will yield a better sale price as home values have risen nearly 11% year-over-year. Despite record low mortgage rates, over 30% hold off due to concerns about finding or affording new homes. The U.S. housing market faces a supply crisis with inventory down 37% year-over-year, leaving significantly fewer homes available for sale.
Zillow's Weekly Market Report highlights a continued surge in the housing market as prices hit new highs while inventory plummets nearly 50% in major metros. The report indicates newly pending sales are up 19.6% year-over-year but have declined by 4.9% since last month. Median list prices rose to $346,259, marking an 11.7% annual increase. Concurrently, existing home sales surged at the fastest annual pace since 2010, reaching 6.54 million, up 20.9% from last year. Despite the price hikes, low mortgage rates mean manageable monthly payments for buyers.
In Q3 2020, Manhattan's median asking rent dropped to $2,990, a 7.8% year-over-year decrease, falling below $3,000 for the first time in nine years. This drop was driven by a record 44.7% of rental listings being discounted, increasing by 22.7 percentage points from the previous year. Additionally, rental inventory soared by 69.8% to 72,267 listings. Brooklyn and Queens also saw declines in their rental markets, with respective decreases of 2.5% and 2.2%. The surge in discounts and increased inventory indicate a struggling rental market amid the pandemic.
On October 22, 2020, Zillow discussed the current housing market, characterized by low inventory and high demand, making it a seller's market. However, low mortgage rates present a significant opportunity for buyers. Zillow economists offered guidance for navigating this competitive environment, emphasizing the importance of pre-approval and good credit scores. The report highlighted the risks of overpaying in bidding wars and urged buyers to set budgets and prioritize needs. Zillow connects users with local agents to streamline home buying and offers direct home buying and mortgage services.
Zillow Group (NASDAQ: Z, ZG) will release its third quarter 2020 financial results on November 5, 2020, after market close. A conference call and webcast to discuss these results will take place at 2 p.m. PT / 5 p.m. ET. Investors can access information, including the live call registration, through the company's Investor Relations website. Zillow Group offers various real estate services, enhancing the home buying and selling experience.
Zillow has launched four tiered Rent Connect marketing packages, simplifying multifamily advertising nationwide. Following a successful pilot, these packages eliminate the complexity of multiple solutions, offering multifamily professionals enhanced control and exposure. The packages include crucial market insights and access to Zillow's popular rental network. Enhanced solutions provide tools for evaluating marketing effectiveness, with the 3D Home tours increasing visitor engagement by 20%. The new offerings aim to bolster visibility for properties during challenging economic conditions.