Real estate giant Zillow Group Inc. has announced it is winding down Zillow Offers, its tech-driven home-flipping platform, citing insufficient predictability in the system’s home price forecasting algorithms, driving up risk and hurting profitability.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility,” Zillow Group co-founder and CEO Rich Barton, said in a Nov. 2 earnings release (pdf).
