Zillow Adds More Markets to its i-Buyer Program Amid Signs of a Downturn

Seattle-based Zillow plans to expand its i-Buyer program, known as Zillow Offers program in Dallas and Houston, TX, Raleigh, NC and Riverside, CA in 2019, according to PR Newswire.

The Zillow program is already rolled out in Phoenix, Las Vegas, Atlanta, Denver and Charlotte, N.C.

Zillow joins the ranks of residential sales firms such as Redfin, CBRE and OpenDoor, among others that offer to buy your house then resell it.

The move comes amid signs of a possible downturn in the residential real estate market, driven by higher mortgage rates, high prices and a turbulent economic landscape.

Zillow expects to generate $30 to $40 million in revenue from Zillow Offers in 2018, which is down from earlier projections in May of $125 to $255 million. It expects to hold 300 to 550 homes in inventory, down from 300 to 1,000 homes.

Shares of Redfin and Zillow have been hit hard in recent months. Redfin and Zillow have both seen their stocks decline about 30 percent since early August on investor fears of a declining real estate market, while the Nasdaq Stock Market has dropped about 14 percent in that same time frame.