From Zillow to Zero
Housing has been on fire the last 18 months. Part of that run up is due to corporations coming into the market and buying in mass. Zillow was one of them. Whelp, somehow 2/3 of their buys are underwater. Oops.
Zillow has close to $3 billion in houses that it now needs to liquidate. How it is underwater on this many homes when the market is up 20% I have no idea. But it leads to two questions:
- Is this the tip of the iceberg in terms of large investors getting to aggressive?
- I’m guessing those Zillow estimates aren’t worth the bits they are stored in.