Zillow Has Stopped Buying Homes to Flip

Zillow has paused its home-buying operations to manage its large inventory and address challenges in labor and supply for renovations. The company has accumulated significant debt and is focusing on selling its existing homes. This pause has allowed competitors like Opendoor and Offerpad to gain market traction.

Why has Zillow decided to pause its home-buying activities?

• To focus on selling its current inventory

• Due to a lack of available homes

• To expand into new markets

• Because of a decline in the housing market

What is one of the main challenges Zillow faces in its home renovation process?

• High property taxes

• Shortage of labor and supplies

• Declining home values

• Increased competition

How much profit did Zillow make on the houses sold in the second quarter?

• Close to 3%

• Close to 6%

• Close to 8%

• Close to 10%

What financial strategy has Zillow employed to manage its home purchases?

• Reducing employee salaries

• Issuing bonds

• Raising home prices

• Cutting renovation costs

How has Zillow's pause in buying affected its competitors?

• Competitors have paused their buying activities as well

• Competitors have faced similar supply issues

• Competitors have increased their market share

• Competitors have seen a decline in their stock prices