The American company Zillow, which allows users to sell real estate on the Internet, will stop buying houses on their own for the purpose of resale due to the unpredictability of prices. The company said it would lay off about 25% of its staff within a few quarters due to the dissolution of the related division. Zillow has already written off $ 304 million in resale housing costs and will write off another $ 240 million to $ 265 million in the fourth quarter of 2021.
“We have found that house price volatility significantly exceeds our expectations, and efforts to develop the Zillow Offering will result in excessive revenue and balance sheet volatility,” Zillow Co-Founder and CEO Rich Burton said in a third-quarter report. According to him, the offer was in demand “only by a small part of clients”. Resale of homes was the most profitable for Zillow, but never profitable, The Wall Street Journal notes.
Zillow shares on the New York Stock Exchange (NYSE) by the close of the exchange fell 10.24% to $ 87.70. At overtime trading by 23:56 on October 2 in Moscow, securities are sold at $ 79.26 (-9.11%).
On the eve of Bloomberg, citing sources, said that the company intends to sell about 7 thousand houses, bought for resale to individuals. The agency noted that a significant portion of the property that Zillow bought is cheaper than she paid for it. Zillow expects to sell housing for $ 2.8 billion and is already offering them to institutional investors.
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