Flipping is Easy ask Zillow as Flipping Scheme Ends in Disaster

[Account Closed]

Seems Zillow has run into market realities. All you flippers should at least take note:

Zillow Scrambles To Punt 7,000 Homes For $2.8 Billion As AI Flipping Scheme Ends In Disaster

Today, Bloomberg reports that Zillow is looking to unload approximately 7,000 homes for $2.8 billion after halting their iBuyer program, according to people familiar with the matter.

In September, Zillow put a record number of homes on the market - with the lowest markups since November 2018 according to research firm YipitData, which also noted that the company had cut prices on almost half of its US listings in the 3rd quarter.

In the second quarter, Zillow bought over 3,800 houses towards their stated goal of acquiring 5,000 homes per month by 2024.

In Phoenix, 36.5% of properties currently for sale were listed below their purchase price, while the remainder of the 93% started higher, only to have price reductions.

[Greg Scott]

LOL  I remember how everyone was so worried (on this forum) that Zillow was going to become the 600 lb gorilla that sucked up all the oxygen in the room.  "Nobody is EVER going to be able to buy house now that they are in the game."

I feel vindicated for stating that I doubt the iBuying model was going to work.  Of course I was assuming it would be a recession taking them down, not simply hubris.