Zillow to Shut Down House-Flipping Business, Lay Off 2,000 Workers After Disastrous Earnings

Zillow is closing down its home buying and selling business and laying off 25% of its workforce after the online real estate company missed its third-quarter earnings estimate.

The company announced in a statement attached to its earnings report Tuesday that it would be shutting down its Offers program, which buys and sells houses, after the company reported a net loss, partly due to failures in its Offers division. Zillow attributed the change to its inability to accurately forecast the housing market.

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Latest Report on National and Local Housing Markets Show Home Values and Rent Both Up

According to the latest report by Zillow, annual growth in national home values set another record high of 18.4% in September and rent growth remains very fast. Zillow, an American online real estate marketplace company, reported that in Nashville, the average home is around $365,573 – up 20.9% from last year and up 2.4% from August. Monthly rent prices are also skyrocketing this year. In Nashville, monthly rent prices are up 15.4% from last year at an average of $1,773.

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