Zillow Group Stock Price, News & Analysis

Zillow Group (Nasdaq: Z and ZG) announced its participation in the Goldman Sachs Communacopia + Technology Conference on September 9, 2024. CFO Jeremy Hofmann will engage in a fireside chat moderated by Goldman Sachs' Michael Ng at 3:45 p.m. PST/6:45 p.m. EST.

The event will be accessible via live and recorded webcasts on Zillow Group's Investor Relations website under the Events & Presentations section. This presentation offers investors and analysts an opportunity to gain insights into Zillow's strategies and performance in the real estate technology sector.

Zillow and Thumbtack have released data on affordable, renter-friendly home improvements that can personalize rental spaces and add value for landlords. These upgrades, typically costing less than $1,000, can increase views, saves, and shares on Zillow Rentals. The seven recommended improvements are:

1. Swapping cabinet hardware
2. Adding open shelving
3. Incorporating plants
4. Painting rooms or accent walls
5. Upgrading lighting
6. Hanging mirrors
7. Using peel-and-stick wallpaper

These improvements cater to millennials and Gen Z adults who are renting for longer periods due to being priced out of homeownership. The data highlights how these changes can benefit both renters and landlords, with specific features contributing to increased engagement on rental listings.

Zillow Group (Nasdaq: Z and ZG) has appointed Soumya Tulloss as the new senior vice president of agent sales. This move reinforces Zillow's commitment to supporting real estate agents with innovative products and services. Tulloss, a proven sales leader, will oversee Zillow's agent sales team, focusing on integrating and scaling the sales organization to provide a seamless experience for agents.

Tulloss brings extensive experience from her previous roles, including her position as chief revenue officer at Deliverr and vice president of global messaging sales at Twilio. Her track record includes building successful sales teams and driving significant revenue growth. At Zillow, she aims to help agents become more efficient and productive in serving their clients, aligning with the company's mission to make homeownership a reality for more people.

Zillow's July market report indicates a shift in the housing market, with competition easing and the market moving into neutral territory for the first time since December. Home sales took 18 days on average, six days longer than last year. However, recent drops in mortgage rates could revive competition as we enter fall.

Key findings include:

• The Zillow market heat index moved to neutral, ending the sellers' advantage
• Inventory is up nearly 25% from last year
• Over 26% of homes received price cuts in July, the highest share since at least 2018
• Home value appreciation slowed to 2.8% year-over-year

Lower mortgage rates may encourage more buyers to enter the market, potentially reigniting competition and delaying the usual post-summer cooldown.

Zillow's latest data reveals a cooling rental market, with 33.2% of rental listings offering concessions in July 2024, up from 25.4% a year earlier. This trend is driven by an apartment construction boom, with June seeing the highest number of completed multifamily units in 50 years. Rent growth has slowed to 5.1% year-over-year, a significant decrease from the 22.3% increase in the previous two years.

Six major metro areas, including Raleigh, Charlotte, and Atlanta, have over 50% of rentals offering concessions. The rental vacancy rate remains at 6.6%, the highest since winter 2021. While the supply boom continues, the number of units under construction has decreased for eight consecutive months, suggesting a potential peak in the market.

Zillow Group (Nasdaq: Z and ZG) has announced a significant leadership change. Jeremy Wacksman, the company's longtime executive and Chief Operating Officer, has been promoted to Chief Executive Officer and appointed to the Board of Directors. Wacksman succeeds co-founder Rich Barton, who will remain on the Board and become co-executive chair alongside co-founder Lloyd Frink.

Wacksman, who joined Zillow from Microsoft in 2009, has held various leadership roles within the company, including product leader, chief marketing officer, and most recently, chief operating officer. During his tenure, he has been instrumental in driving innovation, growing Zillow's businesses, and overseeing key departments such as engineering, product, design, marketing, sales, and industry relations.

Under Wacksman's leadership, Zillow has seen significant growth and innovation, including the development of its housing super app strategy, diversification of revenue streams, and successful acquisitions of industry software solutions like Follow Up Boss and ShowingTime.

Zillow Group reported strong Q2 2024 financial results, outperforming the residential real estate industry for the eighth consecutive quarter. Key highlights include:

- Revenue of $572 million, up 13% year-over-year
- Residential revenue increased 8% to $409 million
- Rentals revenue grew 29% to $117 million
- Mortgages revenue rose 42% to $34 million
- Adjusted EBITDA of $134 million, or 23% of total revenue
- Net loss of $17 million, or 3% of total revenue

The company reported 231 million average monthly unique users and 2.5 billion visits, up 4% year-over-year. Zillow also announced the promotion of Jeremy Wacksman to CEO and his appointment to the Board of Directors.

Zillow's latest analysis reveals that luxury home values are outpacing typical home appreciation for the first time in years. The typical luxury home in the U.S. is now worth about $1,620,000, with values up 3.9% year-over-year, compared to 3.2% for typical homes. This trend reversal is attributed to luxury buyers being less affected by higher mortgage rates and often able to pay in cash.

Key findings include:

• Luxury home inventory is 46.9% below pre-pandemic levels, a larger deficit than the overall market
• Richmond has the hottest luxury market, with values up 16.5% year-over-year
• Austin is the only major market where luxury home values have declined
• 20.8% of luxury listings experienced a price cut in June, compared to 24.5% of all listings

A Zillow analysis reveals that the number of U.S. cities with $1 million starter homes has nearly tripled since 2019, rising from 84 to 237. California leads with 117 such cities, followed by New York (31) and New Jersey (21). Nationwide, the typical starter home is worth $196,611, but values have grown 54.1% over the past five years, outpacing the 49.1% increase for the typical U.S. home.

This trend has delayed first-time home purchases, with the median age of first-time buyers increasing to 35. The New York City metro area has the most cities (48) with million-dollar starter homes, followed by San Francisco (44) and Los Angeles (35). Markets with restrictive building regulations tend to have more cities with high-priced starter homes and lower homeownership rates.