View the full presentation on YouTube: http://zlw.re/jsbc7gh The world is changing, and change is accelerating. Spencer explores key trends in technology, housing and the real estate industry; discusses the implications for Premier Agents and Zillow Group; and outlines the principles that keep leaders at the forefront of – rather than reacting to – innovation and change.

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Staying Ahead in a World of Change
Spencer Rascoff, Chief Executive Officer

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in housing
What’s happening…
@spencerrascoff

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Home values are nearing pre-recession levels
ZILLOW HOME
VALUE INDEX
Median home value
@spencerrascoff

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Fewer homes are underwater
HOMES WITH A
MORTGAGE IN
NEGATIVE EQUITY
Percent of all homes, U.S.
@spencerrascoff

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Demand for homes is high… Those on the market are going fast
DAYS ON ZILLOW
For sale listings, U.S.
@spencerrascoff

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More Chinese buyers than ever… Expensive taste and strong
geographic preferences
35%
8% 7%
0%
10%
20%
30%
40%
California Washington New York
AVERAGE PURCHASE PRICE TOP STATES FOR CHINESE BUYERS
$236,450
$499,600
$831,800
$K
$200K
$400K
$600K
$800K
$1M
Median sale
price
Other foreign
buyers
Chinese
buyers
Source: 2016 Report from Rosen Consulting Group and Asia Society; Zillow Median Sale Price
(June 2016)
@spencerrascoff

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Zillow’s Chinese Resource Center
@spencerrascoff

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Despite demand, homeownership is stuck at a 50-year low. Why?
HOMEOWNERSHIP
RATE
Percent population, U.S.
@spencerrascoff

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Millennials are delaying major life decisions
MAJOR LIFE
DECISIONS
Percent millennial
population
Homeownership rate
Percent ever married
Percent with children
@spencerrascoff

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Rising rents and home values make it difficult to save for or afford a home
SHARE OF INCOME
SPENT ON RENT
Historic vs. 2016
2016 Q2
1985-2000
@spencerrascoff

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Incomes aren’t rising fast enough to support new homeownership
INCOME GROWTH
VS. HOUSING COST
Annual income growth
Annual rent growth
Annual home value growth
@spencerrascoff

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Inventory remains too tight to allow for affordable housing
SEASONALLY
ADJUSTED
INVENTORY
Total homes by price tier
Top third
Middle third
Bottom third
@spencerrascoff

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Mortgage rates are (still) low
PRIME 30-YEAR
FIXED MORTGAGE
RATE
@spencerrascoff

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in real estate
What’s happening…
@spencerrascoff
 Listings data management
 The rise of teams
 Everything online
 Where to get listings

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1. Listings management pendulum swing
MLS book
@spencerrascoff

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1. Listings management pendulum swing
Internet websites
@spencerrascoff

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1. Listings management pendulum swing
Spray and pray
@spencerrascoff

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1. Listings management pendulum swing
Listings everywhere!
@spencerrascoff

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1. Listings management pendulum swing
Industry panic
@spencerrascoff

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1. Listings management pendulum swing
Scale back to
trusted sites
@spencerrascoff

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1. Listings management pendulum swing
Solve for agents’ challenges
@spencerrascoff

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2. The rise of agent teams
@spencerrascoff
57% of this year’s Premier Agent Forum
attendees are team leads

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3. Everything online
69%
81%
CRM Transaction management
Source: RealTrends, October 2016 report
TECH ADOPTION IN BROKERAGES
new business partners in the last year
1,000
@spencerrascoff

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4. Attention is on listings, more so than ever before
@spencerrascoff
At Zillow Group Among agentsIn the market
How to get more listings through new channels
like referral networks and social media
How to empower homeowners and sellers
with information, tools and insights
How to navigate tight inventory and a
highly competitive market

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at Zillow Group
What’s happening…
@spencerrascoff

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Our audience continues to grow
25M
50M
75M
100M
125M
150M
175M
200M
171 million
May 2016
@spencerrascoff
Source: Google Analytics and Omniture
ZILLOW GROUP
MONTHLY UNIQUE
USERS
Quarterly average

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Mission
To build the largest, most trusted and vibrant home-related marketplace
in the world.
@spencerrascoff

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great people great products connect via tools
attract audience
engage professionals
our formula
@spencerrascoff
1 2 5
3
4

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Strategic focus for Premier Agents
Align ourselves with the best
and invest in their success with innovative products and services
Drive efficiency with technology
through the Premier Agent App, Dotloop and Bridge Interactive
@spencerrascoff

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Strategic focus for Premier Agents
Take big swings
and invest in technologies that transform the home search
Think long-term
with products that anticipate consumer and agent needs
@spencerrascoff

31. #PremierAgentForum
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