Zillow Group in ‘Oversold’ Territory Amid Drop in Share Prices

Digital real estate giant Zillow entered into oversold status this week as its shares fell amid broader indications that the U.S. housing market was slowing down. An “oversold” stock is one that is trading below its estimated value. Investors use what is called a “relative strength index” to analyze the magnitude of recent price changes and determine if a stock has dipped below its intrinsic worth. NASDAQ this week listed Zillow with an RSI at about 28; the exchange said in an analysis that a stock is “considered to be oversold if the RSI reading falls below 30.” Zillow’s share prices have been roughly declining since mid-February and this month dipped below 100 for the first time since November. “A…

Startup Lures Real Estate Investors With Promise of Low-Barrier Buy-Ins

A new startup is pulling in a broader class of real estate investors by offering a way to own shares in real estate at low financial investment barriers. Fundrise is promising “true democratization” of the real estate investment industry, offering “quarterly liquidity, penalty-free” as well as what they tout as a record-low investment minimum of just $10. “A $10 minimum opens the door for millions of new investors to begin growing their portfolio immediately,” the company claims, noting that it recently downgraded its minimum from $500. The firm is also developing resources in investor education by “working with some of the best known personalities in the financial education space to develop programs aimed at demystifying the world of alternative investing.”…

Direct Buyer-to-Seller Platform Pulls Down $13 Million in Capital

A new real estate platform focusing on direct buyer-to-seller transactions of housing has pulled down a major chunk of funding as interest grows in its innovative purchasing model. Aalto has revealed that it acquired $13 million in a Series A funding round via Sequoia Capital. The company has raised more than $17 million in investments since its launch in 2018. The organization, which launched its online marketplace in April, is meant to address the “tedious, outdated process” of homebuying, founder and CEO Nick Narodny told TechCrunch. “People can sell totally on their terms and are much more connected in the process,” he said. Sequoia partner Bryan Schreier echoed Narodny’s criticism of the prevailing real estate model, calling homebuying “one of…

UWM’s Ishiba Says Company Hopes to Start Accepting Cryptocurrency for Mortgage Payments

United Wholesale Mortgage CEO Mat Ishiba this week said the major lending company hopes to soon begin accepting cryptocurrency payments from consumers, something the executive said would be a national first. Ishiba revealed the company’s intent in a quarterly earnings call with investors on Monday. “We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” he said. “That’s something that we’ve been working on,” he added, “and we’re excited that hopefully, in Q3, we can actually execute on that before anyone in the country because we are a leader in technology and innovation.” Ishiba in the call promised “some game-changing technology” the company plans to reveal in…

Rocket Mortgage Sees Stocks Spike After Major Surge in Loan Figures for Second Quarter

Rocket Mortgage saw significant moves in stock after it posted second quarter year-over-year gains in mortgage loans, with the numbers coming at the tail end of a year of real estate frenzy coupled with record-low interest rates. The company in its Q2 SEC filing said it recorded nearly $84 billion in closed loan origination volume, up from about $72 billion in the same quarter the prior year. Year-to-date the company has seen nearly $190 billion in loan origination, soaring above the $124 billion YTD recorded at the same time last year. “Our record purchase mortgage volume puts us well on the path to our goal of becoming the largest retail home purchase lender in the nation by the end of…

‘Rocket Homes’ Looks to Offer ‘Seamless’ Buying-Selling Experience Online

Rocket Companies, the corporation most known for its highly popular mortgage division, is launching a new initiative it claims will offer a practical integration of both the home-selling and home-buying processes. Rocket Homes will offer “a comprehensive suite of services” including “credit reporting, home search,” a suite of “on-staff real estate agents,” a “nationwide network of trusted real estate professionals,” and other features, the company said in a press release. The initiative will “ensure every owner is given the opportunity to receive a guaranteed offer on their house,” the release claimed. “Consumers who need to sell their house before buying another often lose out on their new dream home due to the need to make a contingency offer – meaning…

Opendoor sees major revenue, profit spikes after successful second quarter

Home-flipping digital real estate service Opendoor posted significant gains for its second quarter this week, reporting high double-digit jumps in revenue and gross profit after what it said was a “seismic shift in consumer demand.” In its quarterly report to investors, Opendoor listed a 59 percent jump in revenue relative to the last quarter, along with a 64 percent jump in gross profits and a sharp decline in net income losses. The company also posted a massive jump in the number of homes it purchased this quarter, up 136 percent from earlier in the year. Those favorable numbers “were driven by strong execution against our three key priorities of existing market growth, new market expansion, and building a digital, end-to-end…

UWM’s Ishiba urges big loans amid high housing prices, low interest rates

United Wholesale Mortgage CEO Mat Ishiba this week urged brokers to aim for “jumbo” loans amid high housing prices, claiming that buyer hesitance should be discouraged and that brokers should push for larger mortgage tabs. Brokers “have a great jumbo opportunity, and jumbo borrowers and cash-out borrowers need your help,” Ishiba said in his monthly address to UWM, according to MPA. Ishiba in the call suggested that any reticence felt by buyers over high housing prices should be waved away. “People say, well, rates are low, but housing values are going up and I want to wait for a little while to see if values will come down,” he said. “Well, if rates tick up and housing values slow down,…

Rocket Mortgage Launches Targeted Detroit Homebuyer Loan Program

Major loan company Rocket Mortgage this week announced the rollout of a targeted homebuyer program for the city of Detroit, one that offers a substantial lender credit in an effort to spur home purchases in the long-suffering midwestern city. The program, Detroit Home Loan+, was “specifically designed to help Detroiters” purchase homes in the city, the company said in announcing the initiative. Detroit has long struggled to maintain a thriving cityscape, with the city’s population having decreased sharply since the mid-20th century while crumbling houses have dotted the city streets for decades. Rocket pointed out that “less than 47% of Detroit’s residents are homeowners, which is well below the national average.” The program is meant to “help make homeownership easier…

Zillow Earnings Report Shows Massive Revenue Jump After Year of Housing Frenzy

Online realty company Zillow posted major revenue gains for the second quarter of this year, showing a massive spike in earning year-over-year after a prolonged housing frenzy that still hasn’t cooled off. In its 2021 Q2 release, the company said it saw just over $1.3 billion in total revenue for the three months ending in June. That’s up from $768 million in the same period of 2020, a jump of 70 percent. Its gross profit as a share of revenue, meanwhile, jumped from 37 percent to 41 percent. “Our strong second-quarter results show how well we’re executing on the three- to five-year growth objectives we announced in 2019,” Zillow Group co-founder and CEO Rich Barton said in the report. Barton…