We heard yesterday that after losing lots of money, Zillow has decided to leave the ibuyer market.
Since the News Broke
I’ve had lots of people asking me what it means for the Denver market.
I’ve attempted to address a couple of these questions below.
How many transactions has Zillow been doing?
To obtain a completely accurate number, one would need to examine the ownership records of all the metro counties. However, MLS data can shed some light on this question. One of the ways to determine how many transactions are “Zillow” transactions is to look at all the transactions where Zillow’s closing company closed the deal.
Over the last 360 days, the number turns out to be pretty high — much higher than I thought.
The MLS contains 789 transactions that were either sold or pending, in the last 360 days.
There were 446 listings that closed in the last 360 days.
Three of those listings were with non-Zillow brokers. Those three are buy sides that closed with Zillow listing services.
Zillow has 162 Active listings.
Zillow has 181 Pending listings.
What’s going to happen with their current inventory?
Based on this week, Zillow appears to be dumping its homes. In the last 4 days (Nov 1st) Zillow has already listed 35 properties. This is a much higher rate of listings than weeks previous.
The unknown factor is how much inventory do they have left to list? Again, since most of Zillow purchases are off-market, one would need to examine the county property records to determine how many properties Zillow owns.
Buyers will be happy for any additional inventory, and perhaps a few buyers will find some deals among the properties Zillow is rapidly unloading.
About the Author
Greg Parham
President and Co-Founder