In a reflection of the ever-changing housing market, Zillow Group announced a loss of $35 million in the second quarter, compared to a net income of $8 million in the same period last year. However, this loss was better than expected, as analysts had predicted a loss of $63.1 million. Revenue for the quarter experienced a slight increase, reaching $506 million, beating the expected revenue of $472.6 million.
Residential revenue saw a 3% decline compared to the previous year, but it still performed better than the overall transaction dollar decline in the industry. Rentals revenue, on the other hand, grew by 28% year over year. Mortgage revenues took a hit, sliding 17% due to higher interest rates.
Despite these challenges, Zillow managed to outperform the broader industry for the fourth consecutive quarter. However, both traffic to their mobile apps and websites and visits in general saw a decline compared to the same period last year.
According to Chief Executive Rich Barton, “Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market.”
By Denny Jacob