According to a report by MarketWatch, Zillow is calling it quits in the house flipping business. Zillow Chief Executive Officer Rich Barton addressed investors in a statement indicating that the companies forecast models were too unpredictable, and the market too volatile.
Dissolving this business venture will take months and cost the company approximately 25% of its work force, according to the report. Zillow was previously aggressively purchasing homes, fixing them up, and re-selling at a profit. However, reports indicate the company bit off more than it can chew while also overpaying for properties.
Shares continue to fall for Zillow after the news broke that the company would temporarily place a hold on buying any more homes. Now, the company is folding entirely on the venture.