Zillow Breaks From Buying U.S. Homes

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

According to Bloomberg, Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.

Questions:

  1. How many homes did Zillow acquire in the second quarter of this year?
  2. What happened to Zillow stock after this announcement on Monday, Oct. 18? How does this compare to 2020 performance?
  3. What is Zillow Offers and how does it work?
  4. Who is Zillow Offers competitor?
  5. What are some of the controversies associated with Zillow?
  6. Briefly explain why Zillow is pausing its homebuying.

Source:

Clark, P. (2021) Zillow Pauses Homebuying as Tech-Powered Flipping Hits Snag. Bloomberg News, Oct. 18 (Retrievable online at https://finance.yahoo.com/news/zillow-pauses-home-purchases-snags-160557830.html)