![]() ![]() The company reported a $62 million net loss in the properties portion of its business, which primarily included the flipping operation, RedfinNow. Redfin reported a net loss of $321 million in 2022, more than double its $110 million loss in 2021. Redfin, a listing site and brokerage with agents on staff, followed suit in late 2022, closing down its home-flipping division and laying off 13% of its staff. That was a vast improvement from 2021 when the company shuttered its house-flipping business, began laying off a quarter of its staff and reported a year-end loss of $528 million. Zillow, which operates a listing site and sells exposure on its site to real estate agents, reported a net loss of $101 million in 2022. “Thirty-year mortgage interest rates nearly doubled … meaningfully slowing turnover and home-price appreciation in the housing market.”īoth Seattle-based companies faced plummeting share prices and financial challenges while attempting to flip houses over the last two years. The market shift was “the scenario we had feared could happen,” Zillow CEO Rich Barton told investors Wednesday. ![]() Nationwide, the number of home sales dropped 18% from 2021 to 2022, according to the National Association of Realtors. The results reflect the chill that hit the housing market last year, as interest rates shot up and kept many prospective homebuyers from shopping. Despite cutbacks and layoffs in 2022, year-end earnings reports from Zillow and Redfin showed substantial losses and declines in gross profit. SEATTLE – Seattle’s real estate tech companies are feeling the effects of the cooling housing market on their bottom lines.
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