Zillow reportedly needs to sell 7,000 houses after it bought too many

Zillow is trying to offload around $2.8 billion worth of houses onto investors after it bought them with the intent of selling them to hopeful homeowners and landlords, according to a report by Bloomberg. This follows another Bloomberg report that the real estate browsing website had to stop buying houses when it found itself with excess inventory after the company told investors it planned on ramping up its flipping business.

On Tuesday, Zillow announced in its earnings report that it’s winding down the practice entirely, and estimated that it’ll lose over half a billion dollars in value on the houses it owns. It also announced that it would be laying off about a quarter of its employees, and said that it had underestimated how...

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