New York, Jan 23, 2026, 09:02 EST — Premarket
Zillow Group’s Class C shares rose 5.7% on Thursday and held steady in premarket trading Friday, following the release of fresh housing-market forecasts that intensified the debate on whether 2026 will see increased deal activity. The stock was indicated near $68.59.
Why it matters now: housing-related stocks have been reacting to shifts in mortgage rates, which remain near multi-year lows despite ongoing policy changes and geopolitical tensions rattling bond markets. A Reuters story late Thursday quoted economists who argued that a $200 billion mortgage-bond purchase program might only slightly lower borrowing costs, with supply constraints playing a bigger role. “The U.S. … has a supply problem,” said Joseph Brusuelas, chief economist at RSM US LLP. (Reuters)
Zillow’s latest forecast, released Thursday, projects U.S. home values will increase 1.2% over the next year. It also expects existing-home sales to reach 4.26 million in 2026, a 4.3% rise from 2025. The report predicts single-family rents will climb 2.2%, while apartment rents dip 0.1%. Higher mortgage rates are keeping some potential buyers renting, even as a surge in new apartments pushes vacancies up. (Zillow)
The rally Thursday featured a broader trading range than typical: Zillow kicked off at $65.73, climbed to a session high of $68.77, and dipped to $65.00, with roughly 3.19 million shares traded. (Yahoo Finance)
Analysts are eager to gauge how quickly easing rates will boost transaction and advertising activity. On Wednesday, Benchmark lifted its price target on Zillow to $110 from $95, maintaining a Buy rating. It cited housing catalysts expected over the next year and what it described as “ongoing momentum,” including growth in Zillow’s Showcase offering. Benchmark also highlighted valuation, noting Zillow would trade at roughly 11 times EV/EBITDA based on 2026 estimates—a common metric comparing enterprise value to operating profit. (Investing)
Despite price drops in some markets, Zillow execs maintain that homeowners’ balance sheets remain solid. “The vast majority are sitting on large equity gains,” Zillow chief economist Mischa Fisher told Axios recently, discussing falling home values in parts of Texas. (Axios)
Competition is heating up. Barron’s reported last week that Compass, now merged with Anywhere Real Estate, is rolling out a network of brokerage-led listing sites and pushing “Compass Private Exclusives,” which market homes privately before wider exposure. Compass CEO Robert Reffkin summed it up with the tagline “your listing, your lead,” according to Barron’s. The report also noted Compass is pursuing a legal injunction after Zillow declined to carry certain off-market listings not shared on the multiple listing service. (Barron’s)
Investors are focused on whether falling rates will boost listings and agent spending—the core drivers of Zillow’s marketplace and software—or if the market will stall again once yields rise.
That said, the situation works both ways. Should mortgage rates rise again or supply remain tight in key markets, the expected jump in volume could stall, making it tough to justify the stock’s current multiple. On top of that, ongoing legal battles over listing rules and the future of online home searches add fresh uncertainty.
Zillow is set to release its fourth-quarter and full-year 2025 earnings after the market closes on Feb. 10. The company will follow up with a webcast and conference call at 5 p.m. ET. (Zillow Group)
