Zillow shares plunge on decision to stop buying new homes

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Zillow shares plunge on decision to stop buying new homes

- Zillow Group Inc. shares fell to 6.8% in premarket trading Monday after the online real estate firm said it would stop buying new homes and work to clear a backlog of properties that it had already done.

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The Seattle-based company, which acquired more than 3,800 homes during the second quarter, has seen its market price tumble about 27% this year after it nearly tripled in 2020 amid pandemic-fueled housing boom.

The shares have come under additional pressure in recent weeks after a Viral TikTok video of a real estate agent in Las Vegas stated an unnamed company was pulling off a convoluted scheme to manipulate housing prices in his home market. Also, Zillow is facing increasing competition from firms like Opendoor Technologies Inc. that announced in August it bought more than 8,500 homes during the second quarter.

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