The firm sold about 20% of the homes Zillow Offers currently owns to an investment firm, leaving it about 7,800 – but it goes up to 16,000 after pending sales close.
NEW YORK – Zillow Group has sold around 2,000 homes across 20 U.S. markets from its defunct house-flipping program to the Pretium Partners investment firm. Sources say Pretium intends to rent out its new acquisitions.
Zillow said earlier that it plans to sell about 9,800 properties it owns, plus another 8,200 it was under contract to buy.
The real estate company expects to see a loss of 5% to 7% on these sales, and sources say Zillow received market price for the properties in its deal with Pretium.
Zillow recently announced the closure of its iBuying business because it could not accurately guess future home prices and was sustaining excessive financial losses. Pretium, which owns roughly 70,000 single-family homes, will operate them as rentals.
“We continue to invest in communities and improve access to housing throughout the U.S.,” a Pretium spokesperson said following the announcement.
Other major rental-home investors, including Invitation Homes and American Homes 4 Rent, are also reportedly considering a bid for some of Zillow’s remaining housing inventory. Zillow anticipates that the full dismantlement of its home-flipping business will likely take place over multiple quarters.
Source: Wall Street Journal (11/10/21) Parker, Will
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