Here’s a rundown of the Zillow debacle and what it means for you.
Have you heard the news about Zillow? The popular real estate website apparently bit off more than they could chew when they purchased homes using their algorithm. They attempted to sell those homes for a profit, but they wildly underestimated home appreciation, and since their algorithm wasn’t accurate, they wound up losing millions of dollars. As a result, they’ve had to lay off a quarter of their employees and cancel their Zillow Offers program altogether. Ouch!
Now Zillow is planning to sell approximately 18,000 of the homes it owns or has under contract. But don’t expect a ton of deals from Zillow once they begin to unload their inventory; house flipping isn’t as lucrative as it used to be. With supply chain and labor shortages, it makes the process more costly and time-consuming. Likely, Zillow will sell those properties to corporate buyers or turn them into rental housing.
“If you’re in the market to buy a home, now is a great time to act.”
Beyond that, home prices are on the rise, though not at quite the same rapid pace that we’ve seen over the last year. According to the National Association of Realtors, the median price for single-family homes rose by 13% over the previous month.
Additionally, mortgage interest rates are increasing. Back in 2020, many buyers rused the market to buy homes, refinance, or otherwise take advantage of the record-low rates at or under 3%. Does that mean you shouldn’t buy a home in today’s market? Ultimately, the decision to buy a home should be based on your needs and not market trends. Don’t let rising rates govern your choices. In the grand scheme of things, interest rates are still historically low. Granted, homes aren’t as affordable as they once were due to inventory shortages and increased competition among buyers.
So what does this mean for you? Well, if you’re in the market to buy a home, now is a great time to act. There are usually fewer buyers active in the winter months, and the sellers who keep their homes on the market are typically very motivated to sell. By making a move now, you can still lock in a great rate and get ahead of our ever-growing home prices. Visit www.LasVegasFindAHome.com to see all the current Las Vegas and Henderson homes for sale right now.
If you have any questions about the Zillow news will affect the market or you need assistance buying a new home, give us a call or send us an email. We’d love to help you take advantage of the market and move on to the next phase of your life. We look forward to hearing from you!
