Zillow Will Stop Buying and Renovating Homes

The real estate company Zillow has announced that they will be ending their service Zillow Offers, or instant buying, that bought and renovated homes. On Tuesday, Zillow stated that they lost about $304 million in the third quarter from the program, after purchasing homes at higher prices than it now expects to sell them at. In that quarter, Zillow purchased 9,680 homes, but only sold 3,032.

Rich Barton, Zillow Group’s co-founder and CEO, stated: “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.” Due to this ending, the company will cut 25% of its workforce of more than 6,400 employees.

Source: NPR