Not sure how many people were aware of this, but Zillow had gotten into flipping homes in the U.S. real estate market.
I was shocked to hear from old neighbors what Zillow was paying for houses in the Lawrenceville neighborhood I lived in for 26 years. And here we are, just a few months later: Zillow announced a nearly 1/2 billion dollar writedown and shuttering that part of its business.
One potential takeaway: Zillow got a bit ahead of itself and overextended.
Another view might be: There is simply no more room (demand and/or available $) for residential real estate prices to go up. In other words, "lookout below."
Will be interesting to see if this is just a one-company management misstep, or a market peak event.
I was shocked to hear from old neighbors what Zillow was paying for houses in the Lawrenceville neighborhood I lived in for 26 years. And here we are, just a few months later: Zillow announced a nearly 1/2 billion dollar writedown and shuttering that part of its business.
One potential takeaway: Zillow got a bit ahead of itself and overextended.
Another view might be: There is simply no more room (demand and/or available $) for residential real estate prices to go up. In other words, "lookout below."
Will be interesting to see if this is just a one-company management misstep, or a market peak event.
