Zillow dumping, despite HOT prices defies convential logic

[Kishore P.]

This news is interesting given that the Pheonix market is super hot. We can only articulate Why? #Zillow has decided to dump its home inventory in this MSA. The following are a few that comes to mind:

(1) Holding cost/s to fix these properties far outweigh the profit the company was going to make after rehab.

(2) The turnaround time to fix these properties is untenable due to the shortage of labor costs.

(3) The inflated acquisition price, coupled with an extensive long lead time of raw material have exasperated the new supply of new housing inventory.

(4) Institutional investors are selling/bailing because of the sentiment of https://tinyurl.com/Shoeshineboyindicator.

(5) And last but not least, the AI algorithm has taken into account the above parameters and predicted a bearish outlook for the subject housing market segment.

With all of the above in play, what? is the average person/investor to do:

(a) first not participate in speculation of prices and (b) brace for stagflation-that comes with a price correction of the housing market/s and the debt market in the coming mid-term time frame. #realestate #financeandeconomy #ai #housing, @Business Insider

https://www.businessinsider.com/zillow-offers-ibuyer-sell-phoenix-homes-at-a-loss-2021-10