Zillow just announced that they are shutting down their home buying program with a projected loss of over $550 million dollars. Being one of, if not the largest real estate portal, this news has raised many eyebrows.

Does this news mean that a real estate crisis is on the horizon? No, not in the least. We are very much in a strong housing market, with strong buyer demand against low housing inventory and very low interest rates. Inventory is slowly increasing and the expectation is home appreciation will continue to rise for the foreseeable time; just not at the crazy pace that was seen earlier this year.

The company has admitted that its pricing algorithms are faulty and caused them to overpay for homes. They now have to deal with selling these homes, of which many are reported to be underwater. Although this may seem dangerous, it does not affect the overall market, as the market is too large to be impacted by the issue. That said, let’s focus on the important takeaway. This is a statement that reinforces that technology is not a substitute for the market knowledge and expertise of the local real estate professional.

For homeowners who have received a Zillow Offer that is no longer being honored, Berkshire Hathaway HomeServices has an Immediate Offer program that will allow for a quick sale in which a simple home selling process will be experienced. To see an estimate for how much cash you could get from selling your home in today’s market, use our free and simple tool.

For the full article “Zillow Shuts Home Flipping Business”

More About the Author: Dan Petersen CMO/CFO Petersen Partners, Inc