Zillow working to sell off homes acquired under iBuyer program

The Zillow saga continues. Early in November, Zillow announced in a meeting with shareholders that they were shutting down their iBuyer program, Zillow Offers. In the wake of this major shift, they have worked furiously to unload the properties they owned or had under contract as part of that program. As of today, they have already sold approximately half of those homes.

Zillow stocks are up this week, after they took a beating in the wake of November’s announcement that they would be shutting down their iBuying program. This is due in large part to them selling their iBuyer properties much faster than anticipated.

At the end of September, Zillow owned 9,790 homes and had 8,172 homes under contract as part of Zillow Offers. Since then, they have sold around 9,000 homes including 2,000 in a large-scale deal with New York based investor Pretium. They also cancelled 400 of their pending contracts. In total, this accounts for approximately half of all the properties they had to unload after closing Zillow Offers and has raised investor confidence.

They aren’t entirely out of the woods, however. Stock is still down by over 50% year to date. They are also facing two class action lawsuits claiming alleged securities fraud over the precipitous end of Zillow Offers. The Pretium deal has also sparked higher scrutiny from lawmakers, with Senators, Sherrod Brown, Tina Smith and Jack Reed penning a letter to the Zillow Group demanding higher transparency about whom they are selling.

This comes as part of a broader concern that iBuyers are selling a disproportionate number of homes to institutional investors at a time when inventory is scarce, especially among marginalized communities.

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