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A comment on Zillow to stop flipping homes, loses more than $550M, lays off 25% of staff. Parent comment

Re:Zillow to stop flipping homes, loses more than $550M, lay... by mym1990 on Tuesday November 02, 2021 @09:13PM (#29089921)
Nitpick but the reason you fire-sale that house at loss is because you don't believe the market will catch up in your beneficial timeline. The housing market historically has a pretty slow appreciation rate, but one that is fairly predictable. Maybe Z sees the incoming rate hikes as a high volatility event?
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by captnObvious on Tuesday November 02, 2021 @11:39PM (#29090877)
Holding onto inventory is death. In auto and housing sales if you’re a dealership you’re leveraged in order to hold that inventory (paying interest on it, less friendly interest than you get as a government backed mortgage borrower) and you’re paying insurance and maintenance on that inventory. Vacant houses depreciate very quickly.
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by mym1990 on Thursday November 04, 2021 @11:49AM (#29108665)
Yes, you validated my observation with that assessment. But my point was more towards the private consumer. I think we see a lot of speculation in the housing market now and historically it has been a long term hold investment.
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