Equity Did Zillow get high on its own supply?
Nov 17, 2021
Ryan Lawler, a reporter at TechCrunch+ specializing in real estate tech, joins the discussion on Zillow's retreat from the iBuying market. He dives into the challenges Zillow faced with its algorithm and strategic missteps, resulting in significant financial losses. The conversation shifts to Opendoor's contrasting success in the same arena, illustrating key lessons for startups. Lawler emphasizes that just having data isn't a golden ticket; strategic execution is crucial for success in the competitive housing market.
AI Snips
Chapters
Transcript
Episode notes
Data Isn't Enough
- Zillow's exit from iBuying demonstrates that having data isn't enough to succeed in the housing market.
- Their algorithms, including the Zestimate, failed to accurately predict home values, leading to significant losses.
Zillow's Losses
- Zillow bought high and sold low, even during a period of rising house prices.
- This suggests a fundamental flaw in their pricing algorithms and market analysis.
iBuying Stress Test
- Zillow's struggles served as a stress test for the iBuying model during a market cool-down.
- The question remains whether other iBuyers can demonstrate profitability beyond a booming market.