adplus-dvertising
Connect with us

Real eState

Why Zillow Group Stock Dropped Almost 17% in December

Published

 on

What happened

Shares of real estate technology company Zillow Group (ZG 2.07%) (Z 2.22%) fell 16.6% in December, according to data from S&P Global Market Intelligence. Although there wasn’t news specific to Zillow in December, it continues to take a beating from a sour economy, rising interest rates, and the resulting scenario of a real estate market that’s heading south.

So what

Zillow has a strong edge in its dominant position as a leading online real estate platform. It offers solutions in four main categories: buying, selling, financing, and renting.

Zillow had a disastrous 2021 after it shut down its iBuying business in November of last year. Although that put an end to what was a money-losing business, it sank investor confidence and meant many months of restructuring. That was in addition to what was an emerging bear market and overall economic woes.

However, Zillow is still tops at what it does, and it’s been reporting progress in its efforts. Revenue and adjusted EBITDA from continuing operations declined year over year in the 2022 third quarter, but they came in higher than expectations. Unsurprisingly, the mortgage segment was strongly affected, with segment revenue down 63% from last year.

300x250x1

Now what

Investors have mixed sentiments about where Zillow is going. On one hand, it’s making good progress in its core businesses and maintains its leading position in its industry. It’s developing new solutions that could generate greater engagement and revenue, such as a service that allows potential buyers to schedule home tours in real time. It has a comfortable cash position, with $3.5 billion in cash and equivalents at the end of the third quarter, which was after $176 million in share buybacks.

On the other hand, the dreary real estate climate will make it hard for Zillow to demonstrate high growth despite its progress.

Zillow stock ended up losing 50% of its value in 2022, but it’s been fairly stable over the past six months, indicating that investors see it as an opportunity right now. Shares trade at a price-to-sales ratio of less than 1, which is incredibly cheap, even in the current market.

That does look like a great value for a top stock, and Zillow has the business and cash to effect a strong turnaround. However, there are several hurdles to overcome before Zillow stock could be expected to rise significantly, notably the real estate market itself, stability in its new structure, and its net losses.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

728x90x4

Source link

Continue Reading

Real eState

Nanaimo Real Estate Market Report: January 2023 – Nanaimo News NOW

Published

 on


[unable to retrieve full-text content]

Nanaimo Real Estate Market Report: January 2023  Nanaimo News NOW

728x90x4

Source link

Continue Reading

Real eState

Montreal home sales down 36% from January 2022: Quebec real estate association

Published

 on

MONTREAL — The Quebec Professional Association of Real Estate Brokers says Montreal’s January home sales fell to a level not seen since 2009 as the market slowdown continued.
2023020716024-925c1b48af31af902cd8f01c43ca95be7a228483e639c159622554468ac36b3f
The Quebec Professional Association of Real Estate Brokers says Montreal’s January home sales fell to a level not seen since 2009 as the market slowdown continued. A woman walks by a house for sale in Montreal, Friday, March 4, 2022. THE CANADIAN PRESS/Graham Hughes

MONTREAL — The Quebec Professional Association of Real Estate Brokers says Montreal’s January home sales fell to a level not seen since 2009 as the market slowdown continued.

The association says last month’s sales totalled 1,791, down 36 per cent from 2,816 in January 2022.

Charles Brant, the association’s market analysis director, says these numbers mean activity is approaching a historic low for the month of January and come as rising interest rates are weighing on homebuyers.

He says first-time homebuyers in particular are taking a cautious wait-and-see attitude despite recent drops in prices.

300x250x1

The median price of a single-family home edged down seven per cent to $500,000 year over year, while condos dipped three per cent to $370,000 and plexes dropped six per cent to $675,000.

As median prices fell so did new listings, which hit 4,598 compared with 4,808 a year ago.

This report by The Canadian Press was first published Feb. 7, 2023.

The Canadian Press

728x90x4

Source link

Continue Reading

Real eState

B.C. residential real estate investors unfairly ‘painted as speculators’: BCREA

Published

 on

Statistics Canada released data last week revealing 23.3 per cent of B.C. homeowners are also investors in the market. The Vancouver census metropolitan area (CMA) had an overall investment rate in condominiums and houses of 21.3 per cent.

“Investors often get kind of painted as speculators who are out to buy up housing and do nothing with it, or flippers or any other kind of pejorative terms that we add to investors. But what this data shows, and what’s good to understand, is that they’ve really invested a lot in a primary rental in Canada,” said Brendon Ogmundson. “A lot of the rental units that are being provided are smaller investors who own one unit and are renting it out.”

Statistics Canada defines an investor as an “owner who owns at least one residential property that is not used as their primary place of residence.” 

In B.C., 73 per cent of properties with multiple dwellings were owner-occupied investment properties. Investor-occupants are more common in the province, making up 9.6 per cent of owners.

300x250x1

This is due to a higher proportion of properties with multiple residential units – 11.7 per cent – such as laneway units or basement suites, according Statistics Canada. The national statistics agency said these types of units are more likely to be owner-occupied.

“So many owners in B.C. have chosen to also be landlords by renting out their basement suites or laneway houses and it’s way, way different than any other province in this dataset,” Ogmundson said. 

RE
Statistics Canada data breaking down homeowners by investor-type. 
The region of Greater Vancouver A or Electoral Area A, which includes the University Endowment Lands, Barnston Island, Howe Sound communities, Indian Arm and Pitt Lake communities, had a higher proportion of houses and condominium apartments used as an investment at 42.1 per cent compared with the rest of the region. 

The City of Vancouver had a lower proportion at 32.5 per cent.

This difference is attributed to students attending the University of British Columbia, who are more likely to be renters or live in a second property owned by a family member, according to Statistics Canada. 

The proportion of condominium apartments owned for investment purposes by non-resident investors was the highest in B.C. among the provinces – seven per cent.

The rate of condominium apartments used as investment was lower in the Vancouver CMA (34 per cent) than the rest of the province.

Across B.C., non-residents and out-of-province investors owned 43,890 houses used as an investment. This number was typically higher in areas near the Alberta border. 

Out-of-province investors owned 1.6 per cent of homes in B.C., while in-province investors accounted for 9.8 per cent of all investors. 

clwilson@glaciermedia.ca

728x90x4

Source link

Continue Reading

Trending