Record-low mortgage rates and high demand for more elbow room amid the coronavirus pandemic and new work-from-home normal sparked a surge in online real estate platform Zillow's third-quarter earnings, profits and traffic.
Zillow on Thursday reported third-quarter earnings of 37 cents a share, excluding some items, on revenue of $657 million. Analysts polled by FactSet had expected per-share earnings of 12 cents on revenue of $572 million in revenue.
For the fourth quarter, Zillow said it expects sales of $709 million to $748 million, above the average $682.6 million expected by analysts.
The company pointed to a combination of record-low mortgage rates and the pandemic-driven move to working from home as the key reasons behind its best quarter ever. Zillow provides inventory across the country along with technology that allows prospective buyers to shop for homes and take virtual tours.
“Many of us are re-evaluating where we live and how we live, which has kicked off a Great Reshuffling, and we need safe, digital ways to get to a better place,” Barton said. “This is driving record demand for housing and record engagement with Zillow's leading digital real estate brands.”