This post was originally published on this site
Investing.com – Zillow stock (NASDAQ:ZG) plunged more than 10% as the company suspended buying new homes while it clears the backlog of already-signed contracts through the remaining part of the year.
The company blamed a labor crunch and other supply issues.
“We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory,” Chief Operating Officer Jeremy Wacksman said in a note.
The Zillow Offers business connects prospective sellers with a local agent partner, the company said.
Zillow Offers is a service to homeowners to sell without having to coordinate repairs or host open houses or showings. After buying a home, Zillow prepares it for sale by doing the same type of projects a typical seller would, then lists it on the open market.
The company, which acquired more than 3,800 homes during the second quarter, has seen its stock price tumble about 27% this year after it nearly tripled in 2020 amid the pandemic-fueled housing market boom, according to Bloomberg.
