Zillow and Redfin are both hedging their bets that demand for housing outweighs the suppressed supply resulting from the coronavirus pandemic. Both reported higher than expected revenues for Q1 prior to falling into the red at the end of the last month.
Redfin plans on bringing back 135 furloughed employees to service prospective homebuyers across the country.
Indicators of home buying demand have returned to pre-pandemic levels, leading to the move by both companies. Shares for both companies climbed after the announcement, however, redfin expects a Q2 drop by as much as 9%.
“With whole cities shutting down nearly all commerce, no one can say what a fair price is right now, so we’re not making any instant offers,” Redfin CEO Glenn Kelman.