Homebuyers are turning to new construction to mitigate the shortage of houses on the market. In North Bend, New Home Co. is building its first Washington project, Rivercrest. Pictured is the site of the 80 unit stacked-home project in North Bend.
Under a partnership announced on Tuesday, Zillow Group's new construction-listings will be automatically syndicated to Redfin later this year. The move aims to connect homebuilders with buyers on both platforms.
Builders partnering with Zillow (Nasdaq: ZG) will begin to see their listings and communities syndicated to Redfin (Nasdaq: RDFN) in the fourth quarter, the companies said. It's a timely move with new construction drawing the attention of more and more buyers. It's also the second time the companies have partnered after last year's deal when Zillow began syndicating its 3D home tours to Redfin.
June's new-home sales were up nearly 24% year over year as the supply of existing homes shrank against a backdrop of rising interest rates. Owners are loath to sell the properties they're financing with ultra-low rates that can be half of today's 30-year fixed rates, which on Thursday averaged 6.81%, per Freddie Mac. That was up slightly from the week prior. Zillow's latest market report shows there were 28% fewer new listings added to the market this June compared with last year. A Redfin analysis found that in the first half of 2023, one-third of single-family homes available for buyers to choose from were new construction, a record-high share.
"The strategic partnership will dramatically expand the reach of home builder listings on Zillow and allow Redfin customers to explore a broader range of new-construction homes for sale, creating a seamless home-buying experience," a Zillow press release states.
"Zillow's Community pages, in particular, help buyers understand the benefits of a new-construction home and give home builders a place to highlight all the amenities within a new-build community," said Owen Gehrett, vice president and general manager of new construction at Zillow.
As part of the rollout, Redfin will launch new features to help buyers discover new-construction communities and connect with home builders on Zillow's Community pages.
The pages highlight community amenities as well as list what homes are for sale within the community, categorized from nearly complete lots to move-in ready homes.
Upon the launch of the partnership, Redfin will source non-MLS new-construction listings exclusively from Zillow. New-construction listings available through an MLS will still be discoverable on Redfin.
8/13/23, 6:27 PM Zillow, Redfin launching partnership on listings for new homes - Puget Sound Business Journal