On Monday Zillow co-founder Rich Barton made the announcement that the company would stop buying operations for its most ambitious project, Zillow Offers. From Monday, all house-buying activity has been shut down, with Barton issuing a statement that “We plan to restore Zillow Offers full operations once health concerns pass and local health orders are lifted”.
Zillow’s Offers’ service has seen the company branch out into making offers for homes before reselling them. It has not been without its controversies already, with realtors understandably upset that the number one portal in the country was moving in on their turf and industry expert (and OnlineMarketplaces contributor) Mike del Prete preaching caution with regards to the operation’s revenue.
The statement comes on the back of other house buyers in the sector such as Opendoor and Redfin also stalling operations until the pandemic passes.
Although entirely understandable and undoubtedly the sensible thing to do given the situation, the latest Zillow news will do little to assuage investor fears around the company which, according to the latest figures published on OnlineMarkeplaces yesterday, sees the US colossus among the portals taking the biggest economic hit.