Zillow, the Seattle-based real estate company, is trying to unload about 8,000 houses around the country after the company stopped its home-buying program, Zillow Offers, citing a backlog in renovations and other operations due to labor and supply constraints.
Zillow Offers is among a group of so-called “iBuyers,” which includes Redfin and Opendoor. These companies buy homes, typically from sellers who want to sell their home quickly, and then put the homes back on the market.
These companies have been competing with regular homebuyers as the housing market superheated over the past year amid a shortage of properties on the market.
The home-flipping business has helped juice Zillow's revenue this year, but the company took a write-down of about $340 million because it bought homes during the third quarter at prices that exceed Zillow's estimates for what those properties will fetch in the future.
The move means that in the fourth quarter – historically a time when real-estate discounts might emerge – hundreds of the company's homes are for sale in some of the most competitive markets in the country.
Zillow's website lists 25 markets in the U.S. where Zillow-owned homes are up for grabs. Here's a look at some of the top markets this week:
Atlanta: 353 homes
Zillow's options in the Atlanta area range from 1,300-square foot converted apartments, condos and townhomes staring around $150,000 to a 3,000-square foot home in Roswell with five bedrooms and four bathrooms for about $600,000.
Those extra listings could alleviate some frustration for prospective home-buyers in the area, which has been plagued by a shortage, the Atlanta Journal-Constitution reported in October.
The number of homes listed for sale in September was 18% below a year earlier, the AJC reported.
Tampa/Lakeland/Orlando: 299 homes
Zillow's listings in this part of Florida stretch from Tampa-St. Petersburg on the Gulf Coast, to the Orlando-area, 85 miles to the east. Homes for sale include a two-bedroom, two-bathroom, 900-square foot condo in Sanford for $126,000 to a three-bedroom, three-bathroom, 2,200-square foot home in Celebration for $629,200.
Zillow is one several "iBuyer" firms in the Tampa market. The Tampa Bay Times reported that the companies, including Offerpad and Opendoor, purchased nearly 1,000 homes in the area during the first half of the year.
Phoenix: 292 homes
Zillow's options in the ultra-competitive Phoenix market include a two-bedroom, two-bathroom, 1,100-square foot home in Sun City for $198,000 and go all the way up to a four-bedroom, three-bathroom, 2,200-square foot home in Cave Creek for $677,000.
The homes came on-line in the Phoenix area amid some signs of cooling, the Arizona Republic reported.
But that cool-down likely won't affect prices in the area.
Home sales climbed in September as the Valley’s median price hit a record $410,000, due partly to rising demand from big corporate buyers, the Republic reported.
Home sales across metro Phoenix climbed about 4% in September, according to the Arizona Regional Multiple Listing Service. But sales are down 4% for the year, compared to 2020.
The number of Valley homes for sale climbed 1.2% in September from August.
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Dallas: 201 homes
Zillow's listings in the Dallas-Fort Worth area start with a three-bedroom, two-bathroom, 1,500-square foot home in Fort Worth for $224,000 and the high end of homes include four \-bedroom, three-bathroom, 3,000-square foot home in Little Elm for $555,000.
A housing shortage in the area contributed to a decline in home purchases in the third quarter, the Dallas Morning News reported, which was the biggest among metro-areas in the state.
Rising home prices were another contributor: Third quarter home prices in the Dallas-Fort Worth area were a record $354,000, up more than 18% year-over-year, the Morning News reported.
Minneapolis: 163 homes
Zillow's options near the Twin Cities include a two-bedroom, one-bathroom, 900-square foot condo in Plymouth for $134,000 to a four-bedroom, three-bathroom, 3,200-square foot home in Oakdale.
Zillow and other "iBuyer" firms have not made a big dent in the Twin Cities housing market since it started purchasing homes in 2019, the Minneapolis Star-Tribune reported.
During the first six months of the year, the four largest companies, including Opendoor, RedfinNow and Offerpad, purchased about 375 homes, out of nearly 30,000 homes sold in the 16-county metro area in that time, the Star-Tribune reported.
Denver: 152 homes
Zillow's listings in the Denver area start with condos, including a two-bedroom, one-bathroom, 800-square foot condo in southeast Denver for $199,000, and a five-bedroom, three-bathroom, 3,000-square foot home in Arvada for $761,000.
Housing prices in the Denver metro area have increased at record rates this year, but gains are beginning to slow, the Denver Post reported.
Appreciation rates in metro Denver in the third quarter topped 21%, exceeding records in the area, but the monthly change in August's home-price index was about half the monthly rate in July, which could be a sign that future increases won't be as robust, the Post reported.
Houston: 130 homes
Zillow-owned homes in the Houston-area start at $195,000 for a 1,500-square foot house in Humble with three bedrooms and two bathrooms and go up to a three-bedroom, three-bathroom, 2,000-square foot home in the Greater Heights neighborhood for $686,200.
Among the largest Texas metro areas, Houston was the only one to show increases in third-quarter home purchases — up 1.9% year-over-year, the Dallas Morning News reported.
Austin: 134 homes
Zillow's listings for the Austin area stretch from Georgetown to San Antonio, about 130 miles away. Options include a 1,300-square foot house in Kyle with three bedrooms and three bathrooms for $300,000 up to a 2,600-square foot home in south Austin with four bedrooms and three bathrooms for $625,000.
The homes come on the market as Austin continues to bounce back from the pandemic downturn, with strong signs in real estate and other sectors.
Growth in jobs and population helped push median home prices in Austin and metro area to September records, coming in at $525,000 and $450,000, respectively, the Austin American-Statesman reported.
The unadjusted statewide unemployment rate came in at a pandemic-era low of 4.9% in September, but Texas remains about 90,000 jobs short of its total non-farm employment of 12.9 million people just prior to the pandemic, the Statesman reported
AUSTIN ECONOMY: Austin economy continues to bounce back from pandemic downturn
Cincinnati: 112 homes
Zillow's apartments in the Cincinnati area start at $134,900 for a two-bedroom, two-bathroom unit with 1,000 square feet and the homes top out at $429,000 for a four bedroom, three bathroom house with 2,300 square feet in Springsboro.
Cincinnati's housing market has recently to show signs of 'normalizing,' the Cincinnati Enquirer reported.
In August, more sellers marked down the list price on their homes than at any time since late 2019, with listing prices for homes and condos in Southwest Ohio reduced by an average of 5%.
That was the highest number of price reductions since November 2019, the Enquirer reported.
CINCINNATI REAL ESTATE: Home prices 'normalizing a little bit'
Nashville: 95 homes
Zillow's listings in the Nashville area span from $199,900 for a two-bedroom condo on Hickory Villa Drive to $787,900 for a four-bedroom home on more than half an acre in Brentwood. Some listings — like the condo or this four-bedroom home on Haydenberry Cove, for example — note that prices have been cut by thousands of dollars.
Tennessee's enormous growth momentum accelerated during the COVID-19 pandemic, vaulting Nashville's real-estate market into the top slot for investors nationwide.
Home prices seemed to reach impossible highs over the past year, jumping a record 21% in July statewide year-over-year, according to the Tennessean.
And some investors appear more bullish than ever on Tennessee markets going into 2022, the Tennessean reported.
Nashville is first on the list of growing markets where investors want to park their cash, according to the 2022 'Emerging Trends in Real Estate' report, an influential analysis of U.S. housing markets by PwC and Urban Land Institute. Interested investors range from institutional buyers to individuals with small real-estate portfolios.
ZILLOW IN NASHVILLE: Nashville among top markets where Zillow is unloading houses it purchased
Includes information from AP business writer Alex Veiga
This article originally appeared on USA TODAY: Zillow's selling 8,000 homes in U.S., here are the top-10 markets