Zillow launches AI Mode as prices up 60–80% with tight 3.8-month supply
Zillow CEO Jeremy Wacksman said US home prices are 60–80% above pre-pandemic levels and inventory sits at a 3.8-month supply, while mortgage rates hit 6.54%, limiting buyers. Zillow launched “Zillow AI Mode,” embedding an LLM across its 235 million users to speed up searches, financing and transactions.
1. CEO Identifies Supply Shortage as Major Hurdle
Zillow CEO Jeremy Wacksman noted US home prices are 60–80% above pre-pandemic levels and current inventory remains at a 3.8-month supply, well below the six-month balanced threshold, while 30-year mortgage rates climbed to 6.54%, constraining buyer affordability and slowing market growth.
2. Launch of Zillow AI Mode to Enhance User Engagement
Zillow rolled out Zillow AI Mode, integrating a large language model across its platform serving 235 million unique users, to guide customers through search, financing options, offer preparation and closing processes, aiming to accelerate transaction conversion and boost user engagement.