Zillow (ZG): Housing Market Affected By Macroeconomics

The housing market has been a pain point for investors in the last 6 to 9 months due to interest rate hikes. Zillow Group (ZG) stock price is down 40% year-to-date and the company announced layoffs. “Mortgage rates have dropped significantly recently and the Consumer Price Index or CPI data indicated lower inflation. However, social media mentions of moving and buying or selling a home online are both down year-over-year. These macroeconomic trends have been difficult for both Zillow (ZG) and Redfin (RDFN). Also, Zillow consumer purchase intent mentions are down 36% year-over-year. Though, these levels are still higher than they were in 2019,” says LikeFolio’s Megan Brantley. Tom White and Kevin Hincks weigh in on Zillow’s iBuying model.