Zillow's Impact on the Real Estate Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 17 2025
0mins
Source: CNBC
Zillow's Market Position: Zillow is the leading real estate portal in the U.S. with 250 million monthly visitors, offering detailed listings and innovative tools like the "Zestimate" to help sellers maximize profits.
Revenue Generation: The company generates revenue primarily through lead generation for real estate agents, taking up to 40% of the commission if a lead results in a sale, contributing to its $2.2 billion annual revenue.
Legal Challenges: Zillow faces criticism and legal challenges from competitors like Compass, which has sued Zillow over its listing standards, and from the Federal Trade Commission regarding a partnership with Redfin that may lead to market consolidation.
Response to Criticism: In light of legal scrutiny, Zillow is focusing on enhancing fee transparency and improving tools for renters and housing providers, while Redfin disputes the FTC's allegations regarding their partnership.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 35.000
Low
70.00
Averages
87.40
High
100.00
Current: 35.000
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Current Trends in U.S. Mortgage Rates
- 30-Year Fixed Rate Decline: According to Zillow, the current 30-year fixed mortgage rate has decreased by 3 basis points to 6.33%, which may attract more homebuyers into the market, thereby stimulating housing demand.
- 15-Year Fixed Rate Steady: The 15-year fixed mortgage rate remains unchanged at 5.79%, allowing borrowers to face lower interest burdens in the short term, potentially encouraging more individuals to opt for shorter-term loans.
- Increased Volatility in ARMs: The 5/1 adjustable-rate mortgage (ARM) has risen by 24 basis points to 6.45%, indicating significant recent market instability, which may lead to decreased demand for adjustable-rate products among borrowers.
- Slight Drop in Refinance Rates: The 30-year fixed refinance rate stands at 6.28%, providing homeowners looking to lower their monthly payments with an opportunity, potentially prompting more individuals to consider refinancing to alleviate financial pressure.
See More
Current Mortgage Rate Trends and Insights
- 30-Year Fixed Rate Decline: According to Zillow data, the current 30-year fixed mortgage rate has fallen by 3 basis points to 6.33%, providing borrowers with lower borrowing costs that could stimulate housing market activity.
- 15-Year Fixed Rate Steady: The 15-year fixed rate remains unchanged at 5.79%, offering predictability for borrowers looking to pay off loans quickly, which enhances market confidence despite the lack of movement.
- 5/1 ARM Rate Increase: The 5/1 adjustable-rate mortgage has risen by 24 basis points to 6.45%, potentially leading to higher repayment pressures for borrowers in the future, prompting more cautious choices among homebuyers regarding loan products.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.28%, slightly lower than purchase rates, and while refinance rates are typically higher, current market conditions may entice borrowers to consider refinancing to reduce monthly payments.
See More
Rosen Law Firm Investigates Securities Claims Against Zillow Group
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against Zillow Group (NASDAQ: Z, ZG) for allegedly issuing misleading business information, indicating legal risks that could impact the company's stock performance.
- Class Action Preparation: Investors who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, highlighting concerns over the company's transparency and potentially increasing investor participation in the lawsuit.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission sued Zillow and Redfin for an illegal agreement to suppress rental advertising competition, causing Zillow's Class C stock to drop 4.6% on October 1, 2025, reflecting market concerns about the company's compliance.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its influence and capability in the legal field, which may attract more affected investors seeking legal assistance.
See More
Zillow Stock Nears Three-Year Low Amid Weak Housing Market Guidance
- Market Weakness Impact: Zillow's stock is hovering around a three-year low due to the company's weak guidance for the housing market in the second half of the year, indicating economic slowdown pressures on the real estate sector.
- Supply-Demand Imbalance: The U.S. housing market faces a supply-demand imbalance, as housing prices surged during the pandemic due to low interest rates, but now the rapid price increases have outpaced household income growth, leading to multi-decade lows in housing affordability.
- Traffic and Revenue Growth: Despite a 3% year-over-year decline in traffic to Zillow's mobile apps and website, the company achieved an 18% revenue increase, demonstrating its profitability during market downturns, supported by a massive user base of 220 million monthly active users.
- Long-Term Investment Opportunity: For long-term investors seeking growth stocks, Zillow presents a compelling investment opportunity poised for recovery alongside the housing market, particularly given its valuable database and diversified revenue streams that will support future growth.
See More
Housing Market Demand Under Pressure
- Declining Housing Demand: Housing demand has significantly weakened due to high interest rates and home prices relative to household income, leading to reduced market activity and negatively impacting related companies' performance.
- Supply Shortage: New construction has failed to compensate for the shortfall in existing home sales, resulting in persistently low housing supply, which exacerbates the supply-demand imbalance and affects housing price stability.
- Weak Zillow Performance: Zillow's stock is hovering around a three-year low, and despite a large user base, a 3% decline in traffic in the latest quarter poses challenges for future revenue growth amid a sluggish market outlook.
- Home Depot and Sherwin-Williams: Home Depot faces growth pressures due to slowing consumer spending, yet its 18 consecutive years of dividend increases continue to attract investors; meanwhile, Sherwin-Williams demonstrates stronger resilience with robust sales and significant international exposure.
See More
Mortgage Rates Edge Up Slightly
- Rate Increase Trend: According to Zillow data, the 30-year fixed mortgage rate rose by 2 basis points to 6.36%, the 20-year fixed rate increased by 3 basis points to 6.29%, and the 15-year fixed loan climbed by 2 basis points to 5.97%, indicating market expectations for rising rates that could influence borrowers' loan decisions.
- Refinance Rate Status: The current 30-year fixed refinance rate stands at 6.33%, with the 20-year at 6.21% and the 15-year at 5.84%, reflecting that these rates are often higher than those for purchasing a home, highlighting competitive pressures in the refinance market and rising borrowing costs.
- Market Forecast Analysis: According to Freddie Mac, the average 30-year mortgage rate is 6.53%, up from 6.51% the previous week, demonstrating rate volatility that may affect future homebuyer demand and market activity.
- Future Rate Outlook: The MBA forecasts that the 30-year mortgage rate will range between 6.4% and 6.5% through 2026, while Fannie Mae predicts it will drop to 6.3% by year-end, indicating differing market views on future rates that could impact investor and buyer confidence.
See More
Current Trends in U.S. Mortgage Rates
- 30-Year Fixed Rate Decline: According to Zillow, the current 30-year fixed mortgage rate has decreased by 3 basis points to 6.33%, which may attract more homebuyers into the market, thereby stimulating housing demand.
- 15-Year Fixed Rate Steady: The 15-year fixed mortgage rate remains unchanged at 5.79%, allowing borrowers to face lower interest burdens in the short term, potentially encouraging more individuals to opt for shorter-term loans.
- Increased Volatility in ARMs: The 5/1 adjustable-rate mortgage (ARM) has risen by 24 basis points to 6.45%, indicating significant recent market instability, which may lead to decreased demand for adjustable-rate products among borrowers.
- Slight Drop in Refinance Rates: The 30-year fixed refinance rate stands at 6.28%, providing homeowners looking to lower their monthly payments with an opportunity, potentially prompting more individuals to consider refinancing to alleviate financial pressure.
See More
Current Mortgage Rate Trends and Insights
- 30-Year Fixed Rate Decline: According to Zillow data, the current 30-year fixed mortgage rate has fallen by 3 basis points to 6.33%, providing borrowers with lower borrowing costs that could stimulate housing market activity.
- 15-Year Fixed Rate Steady: The 15-year fixed rate remains unchanged at 5.79%, offering predictability for borrowers looking to pay off loans quickly, which enhances market confidence despite the lack of movement.
- 5/1 ARM Rate Increase: The 5/1 adjustable-rate mortgage has risen by 24 basis points to 6.45%, potentially leading to higher repayment pressures for borrowers in the future, prompting more cautious choices among homebuyers regarding loan products.
- Refinance Rate Overview: The current 30-year fixed refinance rate stands at 6.28%, slightly lower than purchase rates, and while refinance rates are typically higher, current market conditions may entice borrowers to consider refinancing to reduce monthly payments.
See More
Rosen Law Firm Investigates Securities Claims Against Zillow Group
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against Zillow Group (NASDAQ: Z, ZG) for allegedly issuing misleading business information, indicating legal risks that could impact the company's stock performance.
- Class Action Preparation: Investors who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, highlighting concerns over the company's transparency and potentially increasing investor participation in the lawsuit.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission sued Zillow and Redfin for an illegal agreement to suppress rental advertising competition, causing Zillow's Class C stock to drop 4.6% on October 1, 2025, reflecting market concerns about the company's compliance.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its influence and capability in the legal field, which may attract more affected investors seeking legal assistance.
See More
Zillow Stock Nears Three-Year Low Amid Weak Housing Market Guidance
- Market Weakness Impact: Zillow's stock is hovering around a three-year low due to the company's weak guidance for the housing market in the second half of the year, indicating economic slowdown pressures on the real estate sector.
- Supply-Demand Imbalance: The U.S. housing market faces a supply-demand imbalance, as housing prices surged during the pandemic due to low interest rates, but now the rapid price increases have outpaced household income growth, leading to multi-decade lows in housing affordability.
- Traffic and Revenue Growth: Despite a 3% year-over-year decline in traffic to Zillow's mobile apps and website, the company achieved an 18% revenue increase, demonstrating its profitability during market downturns, supported by a massive user base of 220 million monthly active users.
- Long-Term Investment Opportunity: For long-term investors seeking growth stocks, Zillow presents a compelling investment opportunity poised for recovery alongside the housing market, particularly given its valuable database and diversified revenue streams that will support future growth.
See More
Housing Market Demand Under Pressure
- Declining Housing Demand: Housing demand has significantly weakened due to high interest rates and home prices relative to household income, leading to reduced market activity and negatively impacting related companies' performance.
- Supply Shortage: New construction has failed to compensate for the shortfall in existing home sales, resulting in persistently low housing supply, which exacerbates the supply-demand imbalance and affects housing price stability.
- Weak Zillow Performance: Zillow's stock is hovering around a three-year low, and despite a large user base, a 3% decline in traffic in the latest quarter poses challenges for future revenue growth amid a sluggish market outlook.
- Home Depot and Sherwin-Williams: Home Depot faces growth pressures due to slowing consumer spending, yet its 18 consecutive years of dividend increases continue to attract investors; meanwhile, Sherwin-Williams demonstrates stronger resilience with robust sales and significant international exposure.
See More
Mortgage Rates Edge Up Slightly
- Rate Increase Trend: According to Zillow data, the 30-year fixed mortgage rate rose by 2 basis points to 6.36%, the 20-year fixed rate increased by 3 basis points to 6.29%, and the 15-year fixed loan climbed by 2 basis points to 5.97%, indicating market expectations for rising rates that could influence borrowers' loan decisions.
- Refinance Rate Status: The current 30-year fixed refinance rate stands at 6.33%, with the 20-year at 6.21% and the 15-year at 5.84%, reflecting that these rates are often higher than those for purchasing a home, highlighting competitive pressures in the refinance market and rising borrowing costs.
- Market Forecast Analysis: According to Freddie Mac, the average 30-year mortgage rate is 6.53%, up from 6.51% the previous week, demonstrating rate volatility that may affect future homebuyer demand and market activity.
- Future Rate Outlook: The MBA forecasts that the 30-year mortgage rate will range between 6.4% and 6.5% through 2026, while Fannie Mae predicts it will drop to 6.3% by year-end, indicating differing market views on future rates that could impact investor and buyer confidence.
See More
