Explore the evolving landscape of mortgage origination, influenced by shifting interest rates, housing market dynamics, and regulatory changes. Discover strategies for lenders to adapt and thrive in this dynamic environment.
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Zillow’s recent announcement that the online real estate company would be ending its home-buying business and cutting 25% of its workforce appears to have been the result of market forces colliding with short time frames. So reports Quartz.
Zillow CEO Rich Barton, in a call with investors, said the main problem was “price forecasting volatility,” adding that the company was “fundamentally unable to predict the future pricing of homes to a level of accuracy that makes this a safe business to be in.”
While the U.S. housing market has seen year-over-year growth since the Great Recession, Zillow needed to be able to predict prices on a month-to-month basis, as Columbia University professor Tomasz Piskorski explained to Quartz.
