Source: GeekWire —
The latest financial reports from Zillow Group and Redfin demonstrate ongoing wariness within the U.S. real estate market.
Both companies expect revenue from key business segments to decline year-over-year in the first quarter.
Zillow forecasts revenue from its advertising service for real estate agents to be between $313-to-$338 million for the period, down from $363 million in Q1 of 2022.
Redfin estimates revenue of $122 million-to-$130 million in real estate services segment, down from $167 million in the year-ago period.
The housing market continues to retrench due in part to rising interest rates brought on by persistent inflation. Prices have mostly stagnated, as people with fixed mortgage rates are choosing not to move and inventory remains low.
“Regardless of what happens to rates in 2023 and beyond, inventory will likely stay low,” said Redfin CEO Glenn Kelman. “What’s most remarkable about this housing downturn is that the number of homes for sale hasn’t meaningfully increased from the calamitous lows of the pandemic.”
