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Redfin CEO Says Vacation Market is "Toast"
Monday, May 18, 2020
IBuyers, that new label for real
estate agencies that buy homes from sellers rather than just listing them, are
back in the hunt. Redfin announced late last week that its RedfinNow subsidiary
was about to resume operations, joining Opendoor and Offerpad which have
already reopened after COVID-19-driven shutdowns. Zillow has said it would gradually
relaunch its Zillow Offers division in upcoming weeks.
But Redfin CEO Glenn Kelman made a more
startling statement as well. In an interview with Jacob Passy published in MarketWatch,
he declared that vacation markets are "toast," and AirBnb owners are rushing to
unload their properties. They are going too be in tough shape, he said. "There's
a whole economy that was built around the liquidity there that Airbnb provided.
You could get pretty deep into debt and still have somebody pay your mortgage
every month because Airbnb and other travel websites were so good at finding
someone to rent it out. And I don't think many of those folks have the reserves
that Marriott or that Hilton does."
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