Zillow doubles down, tracking to lose $300 million on iBuyer venture
The iBuyer movement is its infancy and already encountering problems. Consider them growing pains, if you’d like, but Zillow is really beginning to hurt, according to Mike DelPrete’s recent presentation at Inman Connect. [Here is where he focuses on Zillow.]
According to DelPrete, who is an independent analyst, Zillow is on track to lose $300 million in its iBuying venture Zillow Offers. In 3Q 2019 alone, DelPrete said Zillow’s iBuyer loss was more than $87 million, nearly double its loss of $45.2 million in the first quarter of last year. “That’s a big number,” DelPrete tells the audience. “I’m not saying it’s good or bad, it just is.”
What he points out is that Zillow, for its part, is doubling down on iBuying, which means it must see a huge amount of promise in this segement. Last month they expanded services into Tucson making it the 23rd market where Zillow Offers is available. Zillow has also announced plans to bring Zillow Offers to Cincinnati, Jacksonville, Fla. and Oklahoma City in 2020.
And that’s not the only risk Zillow is taking. They also announced agreements with regional homebuilders to fix up the homes they want to buy and sell, a move that may make shareholders nervous.
Business borrowers need to come in to see lenders in person, present their case for a loan, with financials, a business plan (and other docs)
Customers with problems need to talk to a banker in person. Phone contact is frustrating (even with — or because of) Artificial Intelligence
CoreLogic: Home prices are on an upswing & millennials are sacrificing to buy
CoreLogic released its HPI this week. The data and analytics firm said home prices will continue to increase on an annual basis, with the CoreLogic HPI Forecast indicating that annual price growth will be 5.2% from December 2019 to December 2020.
On a month-over-month basis, the forecast calls for U.S. home prices to increase by 0.1% from December 2019 to January 2020, which would mark a new peak in prices since the last recorded peak in April 2006.
“On a national level, home prices are on an upswing,” said Frank Martell, president and CEO of CoreLogic. “Price growth is likely to accelerate in 2020. And while demand for homeownership has continued to increase for millennials, particularly those in their 30s, 74% admit they have had to make significant financial sacrifices to afford a home. This could become an even bigger factor as home prices reach new heights during 2020.”
Dr. Frank Nothaft, chief economist at CoreLogic, also notes homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.
Floify integrates with CoreLogic, BluRoot
Floify is making some big moves. Most recently, CoreLogic announced the integration of its Instant Merge consumer credit report within Floify.
“This integration with Floify means our customers can now instantly access credit data during the buyer’s journey and as a result, optimize their digital strategy during the lending process,” said Kevin Mullins, Principal for Channel Partnerships at CoreLogic.
Floify is a digital mortgage tool and point-of-sale solution that lenders use to collect and verify borrower documentation, track loan progress, and communicate with borrowers and real estate agents to help close loans faster. But wait. Floify has also recently expanded its efforts in the brokersphere (albeit up in Canada) via an integration with BluMortgage a marketing tool for brokers by Canadian software company BluRoot.
Through this integration, Floify will enable automation for typically time-consuming and tedious processes. For example, Floify can trigger automatic notifications for missing documents, eliminating the need to manually chase down borrowers, BluRoot said in a statement.