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How Zillow’s iBuying model differed from others and why its exit was not due to technology errors, but human miscalculations.

Zillow’s iBuying arm listed almost 64 percent of homes in five key markets for less than what Zillow paid for them, an Insider analysis revealed.

The iBuying giant will refer potential customers to traditional real estate agents as it works through a backlog of properties.

During an earnings call Tuesday, CEO Rich Barton said home-price appreciation over the last six months hit “unprecedented” levels not seen in 35 years. “Volumes are up. Home price appreciation is up. Homes are just moving really, really fast,” he said. “All of that put winds in the sails of our Premier Agent business and business overall.” The housing market rebound coincides with the re-acceleration of Zillow Offers. Along with other iBuyers, Zillow suspended iBuying when the pandemic struck. During the quarter, Zillow purchased 1,856 homes and sold 1,965 homes during the quarter...

The deal coincides with a record quarter for Zillow. The Seattle-based listings giant reported record profits in the fourth quarter of 2020, with $46 million in net income with $789 million in revenue. It lost $101 million during the same period the prior year. In what CEO Rich Barton described as the “scariest of roller-coaster rides that was 2020,” Zillow’s full-year revenue soared 22 percent to $3.3 billion, compared to $2.7 billion in 2019. It lost $162 million for the year, down from $305 million after it temporarily suspended home-buying, a capital intensive business, during the f...