Real Estate Craziness

One of my pandemic hobbies is browsing Redfin and Zillow to see what kind of house I could buy if I didn’t live in downtown Seattle. Of course, everyone else had that idea, too, so home sales are going through the roof.

As an investor, one of my pandemic hobbies should have been buying Redfin and Zillow stock. In March, Redfin was trading as low as $10, and Zillow bottomed out at $18. Now, they are both up 4.5x over the last 5 months to ~$44 and ~$80, respectively.

Both companies are saying this is a once-in-a-generation opportunity for real estate tech companies as the pandemic has changed what homebuyers want, where they want to live, and how they use technology. This is definitely a space to watch over the next few years, if only to get more fantastic Glenn Kelmann quotes:

Redfin Q2 Earnings Call: We’re running naked through the jungle with a Bowie knife clenched between our teeth, which is the way Redfin was born to be.

‍