Shares of Zillow Group Inc hit over a year's low on Monday after the online real estate firm said it would pause buying houses this year, as labor shortages and supply disruptions hamper timely sales of renovated properties.
The company, through its Zillow Offers unit, buys homes from homeowners and performs light repairs on them, requiring the services of inspectors and contractors. It then lists the homes for sale on its platform.
Zillow shares fell as much as 11.4% to $84.51 by 10:35 a.m. EST, their lowest since September 2020 and well below their 52-week high of $208.11.
"We're operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces," Chief Operating Officer Jeremy Wacksman said.
The U.S. housing market, which had earlier seen a pandemic-driven boost, has over the months faced labor supply issues at construction sites as well as shortages of lumber and other raw materials.
Zillow, however, said it would work on marketing and selling homes for which it has already signed contracts.
© 2024 Thomson/Reuters. All rights reserved.