Is Zillow manipulating the housing market?
Is Zillow manipulating the housing market? While Zillow is increasing its corporate profits, it is locking regular Americans out of the Housing Market. Zillow typically comes in and makes a cash offer on a home for over the asking price. Then they turn around, in a matter of weeks, and re-list the home at a price 10-20% higher than what they bought it for.
Zillow raises the money to fund their cash offer, a home-buying program with low-interest rate credit facilities from Goldman Sachs and Credit Suisse. This means that a publicly-traded company is leveraging the easy money environment creates by the Federal Reserve to price Americans out of their homes.