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Zillow pauses homebuying program in Phoenix, other cities
Zillow exploded into the Phoenix housing market last year in a big way, as the real estate market continues to heat up for flippers. Now, the company says it is halting its Zillow Offers homebuying program in Phoenix and other cities. FOX 10's Linda Williams reports.
PHOENIX - There has been a bit of a jolt to the real estate market, as Zillow announced it is halting its home buying program, called Zillow Offers, in Phoenix and other cities.
Zillow exploded into the Phoenix housing market last year in a big way, as the real estate market continues to heat up for flippers. In September 2020, the real estate giant had 232 properties in the Phoenix area. A year later, Zillow has over 1,000 homes in its Phoenix area inventory.
"Zillow's inventory has grown 1,000% since last year in Phoenix. Just in Phoenix," said Tina Tamboer, a Senior Analyst with The Cromford Report.
Zillow Offers promises home sellers a hassle-free transaction, with Zillow buying their house as-is. The company then repairs and lists them for sale. Company officials now say it struggles with labor and supply shortages, as it works to flip homes.
"When they purchase a home, they have to sell it right away," said Tamboer. "Sometimes, you have to wait for that inventory to dissipate."
Tamboer says while the market is cooling slightly, the Phoenix area real estate market is is still red hot, with home sellers still in the driver's seat.
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