Zillow has ceased buying homes to sell through Zillow Offers given the concerns about public safety and government restrictions surrounding COVID-19. Other companies, including Opendoor and Redfin, have followed suit and paused their home buying programs as well.
While Zillow’s Internet, Media, and Technology segment is the most profitable part of the business, Zillow Offers outperformed company estimations in the 4th quarter of 2019 with a revenue of $603.2 million.
Stay at home orders and other government mandates have caused fluctuations in the market. Prior to COVID-19, Zillow was reporting strong January and February numbers. Zillow Offers plans to return to their normal operations once COVID-19 associated health concerns and local orders are lifted.
The current online inventory of 1,860 homes will continue to be marketed and sold as per usual. As of last week, open houses have been canceled with a focus on virtual tours and/or remote consultations.
“Companies like these, which buy homes and sell them, rather than brokering deals, are not the only residential real-estate businesses making adjustments due to the pandemic.”