Zillow selling homes below cost.

Discussion in 'Other News' started by Chinatown, Nov 1, 2021.

  1. Chinatown

    Chinatown Road Train Member

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    One positive about a crash is if someone has some money in the bank, can get a home cheap.
    That's what I did.
     
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  3. BennysPennys

    BennysPennys Medium Load Member

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    Zillow lost $309 million in 2019, $169 million in 2020. In a normal year for "Z" they lose $150 million to $180 million for the past 6 or so years. Them losing $550 million on their house flipping is with in reason at an average loss of $78K per deal but is more then likely too low and should be about $100K per house. However, this years lose will exceed the $700 million plus the $180 million loss from operations estimated for "Z" and will take out well over 80% of their cash on hand.

    Yes "Z" stock will get killed in the market, but 7000 discounted homes hitting the market will not bring down the overall housing values across the US. If interest rate spike to 6-8% yes the housing market will blead out a lot of value.
     
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  4. Long FLD

    Long FLD Road Train Member

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    I think it’s funny because they used the technology of their own website to find “deals” and buy houses to flip. Only as time went on the flips took longer due to anything from shortage of available contractors to supply chain issues for their supplies. Serves them right.
     
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  5. nredfor88

    nredfor88 Road Train Member

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    And that’s what I’m waiting for. I’m ready to pay cash when the drop comes. Must be patient. Lol.
     
  6. Midwest Trucker

    Midwest Trucker Road Train Member

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    Yeah, same with the stock market. No way am I buying investments right now. Hopefully I’m not wrong though.
     
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  7. nredfor88

    nredfor88 Road Train Member

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    One never knows. I completed my latest round of large market purchases earlier this year and am holding for the time being, except for regular contributions in my 401k (I never stop those purchases). Just stock piling cash, which may or may not be a good move. The housing drop can't come fast enough for me. Too much liquidity and inflation is eating away faster than interest can augment it.
     
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  8. Rideandrepair

    Rideandrepair Road Train Member

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    It’s the same cities. SF, Phoenix, and Vegas. Always the first to overheat. Biggest gains, biggest losses. The deals We saw in 09 still haunt Me. Having cash back then was the key. Foreclosures weren’t easy to finance. FHA came up with an escroll program, to cover existing repairs. Conventional Mortgages had a similar program. Both had big stumbling blocks. Condos with a high vacancy (foreclosure) rate, didn’t qualify. I bought one of the last foreclosed homes available. Same price it was 20 yrs earlier $112k. It was a real hassle getting it. Had to jump through a bunch of hoops, including sneaking in and fixing thins to pass inspection, turning on Utilities in my name, before even closing. Those with cash got deals for .30 on a dollar. $300k cash, could have been $1 mil within a year. All about timing. Another crash is coming, more like a correction. Contrary to popular believe, housing does go down, and has a few times in recent history. Around 1990-1992 being the last correction before the big crash. Things I learned the hard way.
     
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  9. Midwest Trucker

    Midwest Trucker Road Train Member

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    Thanks for sharing. I think your situation must be fairly wide spread with varying degrees of size. The top people at my little bank are saying, is that deposits are through the roof and they don’t know what to do with all of the money. They’re trying to get it loaned out as fast as possible.
     
    Last edited: Nov 6, 2021
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  10. Midwest Trucker

    Midwest Trucker Road Train Member

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    If this all happens again, I’ll definitely be leaning on your experience and expertise if you don’t mind. I was still pretty #### young and certainly didn’t have any money back then. I remember it all very clearly but didn’t really fully understand what was even happening.
     
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  11. Opus

    Opus Road Train Member

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    Give it until about midyear next year
     
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