Zillow has at last fully shut down its home-flipping division.
The company confirmed the news to Inman on Thursday, saying it no longer has any homes listed for sale.
During the company’s Q2 2022 earnings call, CEO Rich Barton said Zillow had 71 homes in inventory, and that it would shed the last of those in Q3.
Although having no homes listed doesn’t necessarily mean they’ve all been sold, it sounds like Zillow’s financially disastrous dalliance with home flipping is essentially finished.
The company launched Zillow Offers, in 2018, hoping to head off IBuyers like Opendoor and Offerpad, who were capturing a growing number of home-seller leads with the enticement of convenient all-cash purchases.
But IBuying wreaked havoc on Zillow’s balance sheet. In 2021, Zillow’s Homes division posted a loss of $881 million, easily wiping out profits from its mainstay ad business. The company as a whole suffered a net loss of $528 million in 2021.
Zillow pulled the plug on IBuying in November 2021, and has been liquidating inventory since then.
Zillow is scheduled to report Q3 earnings on November 2.