New FHFA Program Revisions to Promote Housing Sustainability

The Federal Housing Finance Agency (FHFA) recently stated it is expanding eligibility for Fannie and Freddie’s Refinance programs for low- and moderate-income borrowers, as well as restoring the desktop appraisal flexibility.

“Expanding eligibility for low- and moderate-income families to refinance their mortgage and lower their monthly payments, together with leveraging desktop appraisals to reduce inefficiencies in the mortgage process, are meaningful steps toward overcoming barriers to affordable and sustainable homeownership,” said FHFA Acting Director Sandra L. Thompson in a statement. “Today’s actions demonstrate that FHFA will continue to act purposefully and in dialogue with its stakeholders to minimize market disruption and ensure its regulated entities operate in a safe and sound manner.”

In the next few months, Fannie Mae and Freddie Mac will expand eligibility requirements for their RefiNow and Refi Possible programs.

At launch, the programs stated that area median income (AMI) requirements were limited to borrowers with current income at or below 80%. The income threshold was increased, allowing some moderate-income borrowers, with incomes at or below 100% of AMI, to qualify.

“I am pleased to announce today that Fannie Mae and Freddie Mac will be expanding their new low-AMI refinance programs, RefiNow and RefiPossible, with several enhancements to grow the eligible population and to make these programs easier for lenders to offer,” said Thompson during the 2021 Mortgage Bankers Association Annual Convention & Expo.

“We first announced these programs in the spring, as a way of helping low- and moderate-income borrowers access the same refi opportunities that higher income borrowers were using,” added Thompson. “Take up of these programs has been slower among some of the larger depository lenders, and these new changes incorporate feedback we have received about how to make the programs more effective and how to reduce frictions in the process.”

In addition, both enterprises will incorporate desktop appraisals into their Selling Guides for many new purchase loans starting in early 2022. During COVID, the use of desktop appraisals by the enterprises was one of several temporary flexibilities initiated. A thorough review of data collected from use of the loan flexibilities, and input from the Request for Input (RFI) and public listening session on appraisal-related policies, practices and processes, led to the continued use of desktop appraisals.

“The housing market is always changing, and we need to ensure that our structures and systems grow and evolve with it by fully using all the appropriate tools and available information,” said Thompson. “With desktop appraisals, an appraiser brings their valuation expertise to information that has already been made available to them, such as through listings. This can help each appraiser complete more loans in a day, and it can also help rural communities more readily obtain a necessary appraisal when the borrower is purchasing a property.”

“With desktop appraisals included in the selling guides, what was one of the temporary flexibilities with an uncertain future has been adjusted to mitigate risk for use over the long-term and will now become an established option for originating Enterprise loans. An option that lenders can count on,” Thompson added.

Liz Dominguez is RISMedia’s senior online editor at RISMedia.com. Email her your real estate news ideas to lizd@rismedia.com.

The post New FHFA Program Revisions to Promote Housing Sustainability appeared first on RISMedia.

Powered by WPeMatico

MBA Pledges to Promote Equitable Homeownership With New Campaign

Home for all Pledge is a new commitment to promoting minority homeownership; affordable rental housing; and company diversity, equity and inclusion, from the Mortgage Bankers Association (MBA). The pledge was recently announced by Kristy Fercho, MBA chairman and executive vice president and head of Home Lending at Wells Fargo, during the association’s Annual Convention & Expo.

“The Home for All Pledge represents a long-term commitment by MBA member companies and employees to promote and ensure greater racial equity and inclusion in housing,” said Fercho. “The time is now for the industry to collaborate on developing policies and best practices to close the racial homeownership gap, remove the barriers to sustainable and affordable housing and support strategies to increase diversity within our organizations.”

The association encourages member companies to sign the Home for All Pledge today and commit to aligning with MBA’s efforts to:

– Foster public policies and industry practices that promote and sustain minority homeownership and affordable rental housing
– Support market-based solutions through MBA’s place-based CONVERGENCE programs
– Champion diversity, equity and inclusion in workplaces and the industry

“MBA believes there is a significant need and opportunity for member companies to come together to eliminate the racial inequalities that have plagued our communities for generations,” said Bob Broeksmit, CMB, president and CEO of the Mortgage Bankers Association, in a statement. “With the industry’s support, the results-driven action plans outlined in the Home for All Pledge will help expand homeownership opportunities for minority households, improve affordability and stability in the rental market, and ensure our workforce better reflects the diverse makeup of the communities and borrowers we serve.”

MBA’s Building Generational Wealth Through Homeownership, a new policy initiative announced in September, will provide an important framework for the Home for All Pledge, according to the association. The policy initiative provides industry leadership and direction for reducing the racial homeownership gap; developing and supporting policies that support sustainable homeownership for communities of color; and promoting fair, equitable and responsible lending for minority borrowers.

For more information and to sign MBA’s Home for All Pledge, click here.

The post MBA Pledges to Promote Equitable Homeownership With New Campaign appeared first on RISMedia.

Powered by WPeMatico

RE/MAX Offices Partner in Northern Arizona

Two of Northern Arizona’s real estate offices, RE/MAX Fine Properties and RE/MAX Peak Properties, have merged.

According to the company, RE/MAX Fine Properties has the highest sales volume per agent in the United States for RE/MAX. Last year the brokerage had $1.8 billion in sales and is on track to exceed $2 billion in 2021.

“RE/MAX Fine Properties couldn’t be more excited to join forces with RE/MAX Peak Properties as we are stronger together,” said RE/MAX Fine Properties Partner Jamie Wong in a statement. “We capture the No. 1 and 2 market shares in Northern Arizona combined to be more than $305 million in 2021 production, to be by far the No. 1 powered and of course by the best real estate professionals in the business. The merger has been seamless, and the leadership team—Sandy, Melissa, Andrew, Greg and myself—have displayed absolute excellence!”

The new Northern Arizona brokerage will be home to several top performers including Jamie Wong, who was listed as one of the top three most productive Phoenix-area residential real estate agents by the Phoenix Business Journal last year.

“Real estate has undergone significant change in recent years, and we knew to continue as a top performer in the market it made sense for us to merge with RE/MAX Fine Properties,” said RE/MAX Fine Properties Partner Andrew Meyer in a statement. “We knew the brokerage was the perfect fit for us, as the brand is already successful with 11 locations throughout the state. Through this merger, we look forward to growing our presence and moving forward as the top local brokerage and brand of choice in Northern Arizona.”

For more information, please visit www.remax.com.

The post RE/MAX Offices Partner in Northern Arizona appeared first on RISMedia.

Powered by WPeMatico

Zavvie Provides iBuyer and Power Buyer Programs to JBGoodwin

JBGoodwin REALTORS® is introducing “EasyMove by JBGoodwin,” powered by zavvie. Sellers can now choose an instant cash offer from an iBuyer, a buy-before-you-sell option from a Power Buyer or take the traditional route by listing their home on the open market.

EasyMove is available throughout communities across the entire San Antonio, Hill Country and Greater Austin areas.

“Real estate startups and other corporate home buyers are offering local homeowners more choices than ever,” said Erin Cestero, president, San Antonio Division, JBGoodwin REALTORS®, in a statement. “iBuyers can give sellers an all-cash offer and close very quickly. Power Buyers can help homeowners buy their next home before they sell their current one. Or a homeowner will take a traditional path by listing and selling on the open market with the help of a trusted JBGoodwin agent partner.”

“Everything begins online, but offline sellers benefit from the assistance of a JBGoodwin agent partner who provides the dependable guidance and expertise sellers want and need,” added Cestero.

Cestero said that because many homes are still selling for more than their list price, homeowners need to “carefully explore all their choices and find the one that’s the best fit for them.”

With EasyMove, homeowners work directly with a JBGoodwin agent partner to determine which sales path makes the most sense for them. For example, an all-cash instant offer from an iBuyer requires properties in good condition that fall within a limited price range. Power Buyers gives sellers more control over their moving timeline as they buy their next home before selling their current one. And most homeowners still choose to sell on the open market because it typically results in the highest sales price and the greatest profit.

“We have guided tens of thousands of clients through real estate transactions throughout Central-South Texas,” Cestero said. “Home sellers need to know that whatever path they take, they will have the service excellence and local expertise provided by a proven team of more than 800 professionals, helping them make the best possible decisions.”

“JBGoodwin REALTORS® has been a leader in helping homeowners throughout South Texas for nearly 50 years,” said Lane Hornung, zavvie co-founder and CEO, in a statement. “By creating EasyMove, they continue to be a market leader by ensuring their clients have access to every option for selling a home.”

EasyMove is available to homeowners throughout Austin, New Braunfels, San Antonio and the Hill Country.

For more information, please visit www.zavvie.com.

The post Zavvie Provides iBuyer and Power Buyer Programs to JBGoodwin appeared first on RISMedia.

Powered by WPeMatico

Van Zyl Team Brings Investment Expertise to Florida Coast

Marcia and Albert van Zyl—whose husband-and-wife team, Team van Zyl, works under the banner of Berkshire Hathaway HomeServices (BHHS) Florida Realty—serve buyers and investors along the Fort Lauderdale coastline. It took them a few twists of fate for the magic to happen.

Marcia Saunders was a young woman from Illinois with a background in advertising when she left home for England to pursue an MBA in global marketing at Imperial College London.

She had no way of knowing she would meet and marry a young property developer there and remain in the UK for 20 years—or that a divorce that left her with a vacation home in Fort Lauderdale would find her resettling in the Sunshine State.

Marcia van Zyl obtained her real estate license in 2011, then meeting and marrying an ambitious Florida yacht engineer named Albert van Zyl, who had an interest in property investment.

As Marcia honed her people skills and a talent for digital marketing with Berkshire Hathaway HomeServices Florida Realty, and Albert focused on investment strategies, it didn’t take long for the two to realize they were working two ends of the same business.

“After six years as a managing broker, I was up for a new challenge,” says Marcia van Zyl. “At the same time, Albert decided he wanted to be in the trenches full time—and so in May of 2021, the van Zyl team, specializing in real estate investment strategy and marketing, came into being.”

Barbara Pronin: Your backstory has a bit of a fairy tale vibe, Marcia. But I’m sure it’s not been without some bumps.

Marcia van Zyl: Every career has its ups and downs. But if Albert and I have one thing in common, it’s a drive to be the best at what we do—and a passion for helping buyers and investors achieve their goals in the thriving Florida real estate market.

BP: What types of properties do you handle?

MvZ: Both residential and commercial properties—waterfront homes, ocean view properties, downtown—just about anywhere in the Broward County area.

BP: So, how do your individual strengths play well together?

MvZ: My expertise is in digital marketing and brand management, and I love staging and marketing open houses. Albert is an exceptional problem-solver with proven strategies in waterfront property investment. Together, that makes us the right resource for anyone with an interest in our fast-growing Florida market. I think the proof is in the fact that we successfully serve unseen customers from all areas of the country,  including clients from as far away as England, where I have maintained contacts from the many years I lived there. Most of our business, in fact, comes from referral and repeat clients.

BP: Sounds like you were using marketing aids like virtual tours since before the pandemic put them in vogue.

MvZ: Absolutely. We had to become expert at videography and virtual techniques
early on because so many of our clients live outside our area and often buy properties without being able to see them up close and personal.

BP: How would you measure the success of your relatively new team?

MvZ: I think we are definitely better together. Albert recently closed on a rental property with 17 tenants, for example. Our combined skills made for a smooth transaction even in the midst of challenging times.

BP: Who handles all the administrative details?

MvZ: I do. I’ve always been the detail freak. But we get great support from Rei Mesa, our broker, and from the whole BHHS Florida Realty team.

BP: What do you see as your biggest challenges right now?

MvZ: We are coming into high season in Florida, and we pride ourselves on being effective real estate matchmakers—on finding just the right property for each client.
But right now, developing enough inventory is problematic.

BP: How do you work within those challenges?

MvZ: We love helping people achieve their real estate goals regardless of the market, and that means sellers as well as buyers, vacation or investment properties, or primary homes. We are great fans of target marketing and promotion, and that goes a long way toward helping us find the right matches.

BP: What are your plans for growing your team?

MvZ: We think our business model offers a lot of opportunity for growth, especially in the commercial space, and we look forward to that as the market demands. Also, our daughter is a successful real estate marketing director, and we have high hopes that at some point, she may become part of our team.

Barbara Pronin is a contributing editor to RISMedia.

The post Van Zyl Team Brings Investment Expertise to Florida Coast appeared first on RISMedia.

Powered by WPeMatico

Builder Confidence High Despite Continued Supply and Affordability Challenges

Builder confidence grew in October despite market challenges such as dwindling affordability due to increasing supply pricing and ongoing shortages. For single-family homes, builder sentiment increased four points to 80, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today.

The NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Each score is then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The details:

– Across all HMI indices, October saw gains
– The index measuring sales conditions increased five points to 87
– The index forecasting sales for the next six months experienced a three-point increased to 84
– The index looking at traffic of potential buyers increased four points to 65

Regionally, on a three-month moving scale for regional HMI scores, the Midwest increased one point to 69, the Northeast held steady at 72, the South and West each remained unchanged at 80 and 83, respectively.

The takeaway:

“Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” said NAHB Chairman Chuck Fowke in a statement.

“Builders are getting increasingly concerned about affordability hurdles ahead for most buyers,” said NAHB Chief Economist Robert Dietz in a statement. “Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt. Policymakers must focus on fixing the broken supply chain. This will spur more construction and help ease upward pressure on home prices.”

The post Builder Confidence High Despite Continued Supply and Affordability Challenges appeared first on RISMedia.

Powered by WPeMatico

Industry Forecasts Purchase Originations to Increase 9% to Record $1.73 Trillion in 2022

The Mortgage Bankers Association (MBA) recently announced that purchase mortgage originations are expected to grow 9% to a new record of $1.73 trillion in 2022. After an anticipated 14% decline in 2021 to $2.26 trillion, MBA expects refinance originations will slow again next year, decreasing by 62% to $860 billion.

MBA’s 2022 outlook was presented at its 2021 Annual Convention & Expo by Mike Fratantoni, chief economist and senior vice president for Research and Industry Technology; Joel Kan, associate vice president of Economic and Industry Forecasting; and Marina Walsh, CMB, vice president of Industry Analysis.

MBA forecasts mortgage originations to total $2.59 trillion in 2022—a 33% decline from this year. In 2023, mortgage originations are expected to decrease to $2.53 trillion. Purchase originations are forecasted to reach new successive records in 2022 and 2023, while higher mortgage rates and fewer eligible homeowners will lead to further declines in refinance volume.

According to Fratantoni, MBA’s 2022 forecast assumes continued, strong economic growth amidst eventual easing of the supply chain constraints that have curbed some economic activity this year.

“The economy and labor market rebounded in 2021, but overall growth fell short of expectations because of stubborn supply chain issues that fueled faster inflation, slowed consumer spending, and presented challenges in filling the record number of job openings available,” he said. “With inflation elevated and the unemployment rate dropping fast, the Federal Reserve will begin to taper its asset purchases by the end of this year and will raise short-term rates by the end of 2022.”

MBA’s baseline forecast is for mortgage rates to rise, with the 30-year, fixed-rate mortgage expected to end 2021 at 3.1% before increasing to 4.0% by the end of 2022.

“Mortgage lenders and borrowers should expect rising mortgage rates over the next year, as stronger economic growth pushes Treasury yields higher,” said Fratantoni.

Robust homebuyer demand from millennial households, households seeking more space, and still-low mortgage rates are favorable tailwinds for the housing market in 2022 and are behind MBA’s expectations of record purchase originations over the next two years.

“2022 should be another strong year for the housing market. Home builders will have more success overcoming current building material shortages and should be able to increase the pace of construction to meet the sizable demand for buying,” said Fratantoni. “More newly built homes and more homeowners listing their homes for sale should lead to some deceleration in home-price growth next year. This is good news for the many would-be buyers who are currently priced out or delaying decisions because of low supply conditions and steep home-price appreciation.”

With home prices reaching record highs over the past year, and more recent new construction being larger and more expensive, average loan sizes have also grown and affordability has weakened—especially for first-time buyers. Kan does expect some of the affordability challenges to ease as for-sale inventory grows and home-price growth moderates.

“Credit availability is still around 30% lower than pre-pandemic levels. Mortgage supply will need to increase modestly so that qualified buyers can get access to financing for their home purchase. This will be important for the wave of potential first-time homeowners who are approaching prime homeownership age,” added Kan.

According to Walsh, the industry is moving away from the record-high, extraordinary production profits of 2020. As production volume declines and the market shifts toward fewer refinances and more purchase activity, competition will further stiffen. In this environment, lenders can only chase market share for so long before there are substantial consequences to the bottom line.

“Many lenders will rely more heavily on their servicing business to achieve financial goals. Higher mortgage rates mean fewer prepayments and a longer revenue stream of servicing fees combined with higher mortgage servicing right valuations,” she said. “However, the servicing outlook is more complicated today, with the expiration of many COVID-19-related forbearances and the need to place borrowers into post-forbearance workouts. Servicing costs may rise as servicers work to meet the needs and requirements of borrowers, investors, and regulators.”

“The job market should continue to improve as the pandemic is hopefully behind us, helping to get the economy to full employment by the end of this year,” added Fratantoni. “Household incomes will rise, more homes will be on the market, and home sales should meaningfully increase as a result, even in the face of somewhat higher mortgage rates.”

MBA’s updated Mortgage Finance Forecast and Economic Forecast can be viewed here.

The post Industry Forecasts Purchase Originations to Increase 9% to Record $1.73 Trillion in 2022 appeared first on RISMedia.

Powered by WPeMatico

Real Estate Webmasters Wins Gold at Muse Creative Awards

Enjoying explosive growth following the launch of its Renaissance website platform earlier this year, Real Estate Webmasters celebrated another victory last month—winning the 2021 Muse Creative Design gold award for its submission, www.carlycarey.com, the website of luxury real estate professional Carly Carey. The award represents the top prize globally for all real estate websites.

The Muse Creative Awards were founded by International Awards Associate (IAA) in 2015. This year’s competition saw 43,000-plus entries from over 102 countries, and was judged by 180-plus leaders in the design arena. Entrants are judged on their creativity, content, design, innovation, functionality and impact, among other criteria.

In creating the Carly Carey brand and website, Real Estate Webmasters chose a color palette and design elements reminiscent of Chanel and Tesla, a nod to both innovation and timelessness.

“Carly’s brand is incredibly clever,” says Real Estate Webmasters CEO Morgan Carey. “Her name is ‘Carly’ and ‘Carey,’ so for her logo, we were able to capture both elements in a single, elegant, yet understated, fashion. On business cards, the logo is embossed so that as you move the card and light hits it a different way, the word changes from ‘Carly’ to ‘Carey,’ similar to a hologram.”

But carlycarey.com goes way beyond a stunning veneer—the real juice lies in its powerful functionality.

“Carly’s website is incredibly beautiful, which makes a great first impression, as well as a lasting impression,” says Carey. “But it is also the most ADA compliant and most SEO friendly design in her market. It also has a lot of depth; for SEO and for site visitors, we have developed a significant amount of unique content, and hired professional photographers to shoot every area. In terms of search, not only has Carly mapped all the most important search fields, she also has a custom-built sold-listings application. This offers very unique features, such as being able to search by agent name on both the buy and sell side so that consumers can actually see how many deals a particular agent has done over a period of time.

“By providing much greater depth of local information, better search options and a far better user experience, carlycarey.com shines compared to any other local site,” adds Carey.

Real Estate Webmasters’ expertise in building award-winning sites that are both beautiful and powerful, like carlycarey.com, is augmented by the luxury real estate professional practicing under the company’s roof.

“With Carly as part of the family, Real Estate Webmasters is literally in the business of buying and selling real estate, and her website serves as an amazing source of real-time data and insights,” says Carey. “This gives us inside information on how real estate transactions are generated—and closed. We have an always current perspective on the ever-changing real estate market like no other vendor has.”

For Real Estate Webmasters, success is evident in the tens of thousands of agents already hosted on this platform, including Daniel Gale Sotheby’s International Realty, a 1,000-plus agent brokerage, which was featured in last month’s issue of Real Estate magazine.

“Renaissance is successful because it’s the fastest, most ADA compliant, most SEO friendly and best looking website on the market,” says Carey. “This helps agents’ and brokerages’  brands look amazing and supercharges their performance. Every two months, we release new features, so the framework is evolving at an incredible pace.”

For more information, please visit www.realestatewebmasters.com

Maria Patterson is RISMedia’s executive editor. Email her your real estate news ideas to maria@rismedia.com.

The post Real Estate Webmasters Wins Gold at Muse Creative Awards appeared first on RISMedia.

Powered by WPeMatico

Tim Hur Named AREAA 2022 National President

The Asian Real Estate Association of America (AREAA) has installed its next president. Tim Hur, 37, who is the managing broker and president of Point Honors and Associates, REALTORS®, a boutique real estate firm located in Metro Atlanta, becomes the second youngest leader of the national group. He was recognized last week at AREAA’s National Convention.

AREAA, which was founded in 2003, has more than 17,000 members and is the largest AAPI trade organization in the nation.

Hur’s rise to lead AREAA follows career-long involvement in national, regional and local real estate organizations. He previously served as AREAA’s national treasurer and secretary, as well as chapter president for AREAA Atlanta in 2013 and 2014. In addition, he was named the 2018 National Association of REALTORS® (NAR) chair for Diversity, where he worked closely with NAR’s Fred Underwood, NAR’s recently retired director of engagement, Diversity and Inclusion. He served three consecutive years in 2013, 2014 and 2015 as NAR’s Liaison for South Korea. Hur has also been active in the Atlanta Association of REALTORS®.

“Tim’s relentless pursuit of making a difference on the diversity front has played a significant role in illuminating his career path,” said Amy Kong, AREAA’s outgoing president and the co-founder of Trust Real Estate in San Francisco, in a statement. “AREAA has benefitted from his passionate and energetic engagement with our organization and our causes for many years. Under his leadership, we will leverage the incredible momentum our nation is experiencing in advancing Diversity, Equality and Inclusion initiatives.”

“This past year represents an important inflection point not only for AREAA but for all those dedicated to erasing inequities for those deemed different,” said Hur in a statement. “Many of our partners reached out to us this past year because of our maturity and strength in the DE&I space. In that regard, we have become the hallmark of what Diversity Equity and Inclusion in action looks like. Not only do we have a seat at the table, we are now sitting at the head of the table, a position we will use for everyone’s benefit.”

Hur, a graduate of Georgia Tech University, shared that AREAA will continue to work to increase AAPI homeownership levels while removing barriers AAPI consumers may face in the home-buying and selling process including language barriers, alternative credit needs and fair housing. The U.S. Census reports the AAPI community’s homeownership rate is currently 58.7%, far below the 74.2% figure for the non-Hispanic white population.

He also will push AREAA to lead an effort to attract more AAPI people into the real estate industry.

Hur has been consistently ranked in the Top 5% of REALTORS® in the Atlanta Market by volume and production. He has earned multiple designations through the REALTOR® network, including the prestigious Certified Residential Specialist (CRS, comprising of the top 3% of all REALTORS®), the Certified Luxury Home Marketing Specialist (CLHMS) with the Million Dollar Guild recognition, the Certified International Property Specialist (CIPS), the Accredited Buyers Representative (ABR), the Sellers Representative Specialist (SRS), and GREEN designations.

Source: AREAA

The post Tim Hur Named AREAA 2022 National President appeared first on RISMedia.

Powered by WPeMatico

After Buying Frenzy, Zillow Forced to Hit the Brakes Due to Supply Chain Issues

The supply chain challenges that are straining the housing market are having the same effect on iBuying giant Zillow.

The real estate platform announced on Oct. 18 that its home-flipping business, Zillow Offers, will be taking a break from signing new contracts as the company addresses a backlog of its properties still in its renovation pipeline.

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” said Jeremy Wacksman, Zillow’s chief operating officer, in a statement.

According to Wacksman, Zillow hasn’t been exempt from the mix of challenges straining the home builders and real estate professionals over the past couple of years.

“We now have an operational backlog for renovations and closings,” he continued. “Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”

While Zillow plans to halt new acquisitions for at least the rest of 2021, the company noted that it would continue purchasing homes that already have signed contracts but haven’t closed yet.

Zillow Offers lets homeowners sell without having to coordinate repairs or host open houses or showings. After buying the home, Zillow prepares it for sale by doing the same type of projects a typical seller would, then lists it on the open market.

According to reports from Wall Street Journal, the real estate platform acquired more than 3,800 homes in the second quarter, after expanding into the home-flipping business in 2018 through its Zillow Offers unit.

While Zillow addresses its backlog, the company also said it would connect prospective sellers from Zillow Offers with a local Premier Agent partner.

As Zillow sorts things out with its backlog of properties, Wall Street Journal reports indicate that the pause may prove to be a boon for the company’s iBuying rivals.

A recent statement from Opendoor following Zillow’s announcement insists that the company is still “open for business and continues to scale and grow.”

“We know how important certainty and convenience are to homeowners seeking to move, and we’ve worked hard over the past seven years to ensure we can continue to deliver our experience at scale,” said an Opendoor spokesperson.

A Redfin spokesperson echoed similar sentiments, adding that RedfinNow, its iBuying business, continues to make offers in all of 29 of its markets as the company moves forward with expansion plans.

“We are confident in our ability to meet demand from our customers who want a convenient and flexible home-selling option, despite challenges with the construction labor market and supply chain,” said a Redfin spokesperson. “We’re building our iBuying business in the same methodical way we’ve grown our brokerage over the past 15 years, focusing on sustainable expansion, financial discipline and great customer service.

This is a developing story. Stay tuned to RISMedia for updates.

Jordan Grice is RISMedia’s associate content editor. Email him your real estate news to jgrice@rismedia.com.

The post After Buying Frenzy, Zillow Forced to Hit the Brakes Due to Supply Chain Issues appeared first on RISMedia.

Powered by WPeMatico

Show Buttons
Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkedin
Share On Pinterest
Share On Youtube
Share On Reddit
Share On Stumbleupon
Contact us
Hide Buttons