Back to top

Image: Bigstock

ZG's New Tool to Streamline Home Buying Process: Will the Stock Gain?

Read MoreHide Full Article

Zillow Group, Inc. (ZG - Free Report) recently unveiled an affordability tool named BuyAbility to streamline home purchasing for prospective buyers. The solution provides a personalized estimate of the home price based on the buyer's budget, monthly installments the buyer can afford and the possibility of qualifying for a loan. The availability of this information empowers shoppers with greater clarity and enables them to select preferred homes that align with their budget swiftly. 

Per Zillow data, around 80% of buyers revealed that finding a home within their initial budget is an important criteria. However, finding affordable homes in a volatile market is a major challenge, particularly for first-time home buyers who are discouraged by current high prices and reluctant to disclose their personal finance details to loan officers. Fluctuating mortgage rates make it difficult for shoppers to know how much loan they can get, and basic mortgage calculators often overlook the link between mortgage rates and buyers’ personal financial situation. For instance, buyers with lower debt-to-income ratios and high credit scores usually qualify for a more favorable mortgage rate. This factor immensely improves their purchasing power.

Zillow Group’s latest tool, BuyAbility, efficiently addresses these concerns. Buyers have to provide basic financial details such as income, credit score, monthly debt payments, savings for a down payment, and their target monthly housing cost. The tool calculates an estimate of the home price buyers are likely to qualify for and suggests a budgeted maximum price based on desired monthly payments. Moreover, while browsing homes on Zillow, listings falling within buyers’ affordability range are clearly tagged. These features of Zillow Group’s new tool are extremely convenient and significantly ease the homebuying process.

Will This Product Launch Boost ZG’s Share Performance?

BuyAbility keeps shoppers up to date on exactly what financially feasible options are available for them at any given time. This product launch underscores Zillow Group’s strong customer-oriented approach, which prioritizes fairness and transparency in the home-buying process. This will drive greater user engagement across its apps and websites and boost commercial prospects in the long run.

ZG’s Stock Price Performance

Shares of Zillow Group have gained 95.9% over the past year compared with the industry’s 16.3% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

ZG’s Zacks Rank & Other Stocks to Consider

Zillow Group currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. (ANET - Free Report) carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 14.83%. It provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

InterDigital (IDCC - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.

Published in