Zillow share price plunges 20% year-to-date as Redfin and Trulia also experience an economic slowdown in the real estate market.

Daisy Harvey

2018-11-17 09:33:00 Sat ET

Zillow share price plunges 20% year-to-date as its competitors Redfin and Trulia also experience an economic slowdown in the real estate market. The real estate market hits a sudden and significant slowdown in recent times. Zillow, Redfin, and Trulia experience the current trend that home buyer demand wanes in several key real estate regions such as San Jose, Seattle, Virginia, Washington D.C., Boston, and Chicago etc. Home formation growth falls short of house price momentum, so excess inventories arise as a result of lower home buyer demand.

Zillow makes most of its revenue from online ads and lead-generation tools for real estate agents, and Redfin and Trulia serve as online real estate brokerage firms with rich house data. After a decade of sluggish economic recovery, the U.S. real estate market has been heading into a mild recession in early-2018. Not only do mortgage rates rise in the current monetary policy phase, home prices continue to climb about twice as fast as average household income figures. Trump tax reforms also reduce tax incentives for home buyers to invest in U.S. real estate properties. These trends hurt the share price performance of both Zillow and Redfin alike.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?
Daphne Basel

2020-08-01 07:28:00 Saturday ET

Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?

Technological advances, geopolitical risks, and pandemic outbreaks cannot shake investor confidence in the American dollar as the global reserve currency.

+See More
OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.
Rose Prince

2019-03-27 11:28:00 Wednesday ET

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020. The global economy suffers from economic protraction

+See More
Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.
Dan Rochefort

2017-11-19 08:37:00 Sunday ET

Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.

In 2000, a former law professor at Harvard proposed establishing the Financial Product Safety Commission in order to protect consumer rights in the provisio

+See More
OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.
Monica McNeil

2019-04-01 08:28:00 Monday ET

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes. OraSure extracts core genetic information from microbiome s

+See More
President Trump criticizes his new Fed Chair Jerome Powell for accelerating the current interest rate hike.
Joseph Corr

2018-08-21 11:40:00 Tuesday ET

President Trump criticizes his new Fed Chair Jerome Powell for accelerating the current interest rate hike.

President Trump criticizes his new Fed Chair Jerome Powell for accelerating the current interest rate hike with greenback strength. This criticism overshado

+See More
President Trump signs an executive order to freeze federal employee pay in early-2019.
Rose Prince

2019-01-06 08:39:00 Sunday ET

President Trump signs an executive order to freeze federal employee pay in early-2019.

President Trump signs an executive order to freeze federal employee pay in early-2019. Federal employees face furlough or work without pay due to the govern

+See More