According to a late night report from Bloomberg, Zillow will stop buying homes through their buyer program for at least the remainder of 2021. Zillow reportedly acquired more than 3,800 homes during Q2 of this year, but today, the company says the demand has become too much.
“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Zillow Chief Operating Officer Jeremy Wacksman said in a statement. “We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”
Per Bloomberg, Zillow intends to work through the backlog of properties that already have signed contracts, in addition to continue marketing and selling homes through Zillow Offers.