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Staying Ahead in a World of ChangeSpencer Rascoff, Chief Executive Officer

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in housingWhat’s happening…

@spencerrascoff

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Home values are nearing pre-recession levels

ZILLOW HOME VALUE INDEXMedian home value

@spencerrascoff

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Fewer homes are underwater

HOMES WITH A MORTGAGE IN NEGATIVE EQUITYPercent of all homes, U.S.

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Demand for homes is high… Those on the market are going fast

DAYS ON ZILLOWFor 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 saleprice

Other foreignbuyers

Chinesebuyers

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 RATEPercent population, U.S.

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Millennials are delaying major life decisions

MAJOR LIFE DECISIONSPercent millennial population

Homeownership rate

Percent ever married

Percent with children

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Rising rents and home values make it difficult to save for or afford a home

SHARE OF INCOME SPENT ON RENTHistoric vs. 2016

2016 Q2

1985-2000

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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 INVENTORYTotal homes by price tier

Top third

Middle third

Bottom third

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Mortgage rates are (still) low

PRIME 30-YEAR FIXED MORTGAGE RATE

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in real estateWhat’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 managementSource: RealTrends, October 2016 report

TECH ADOPTION IN BROKERAGES

new business partners in the last year1,000

@spencerrascoff

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4. Attention is on listings, more so than ever before@spencerrascoff

At Zillow Group Among agentsIn the marketHow to get more listings through new channels

like referral networks and social mediaHow to empower homeowners and sellers

with information, tools and insightsHow to navigate tight inventory and a

highly competitive market

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at Zillow GroupWhat’s happening…

@spencerrascoff

#PremierAgentForum

Our audience continues to grow

25M

50M

75M

100M

125M

150M

175M

200M

171 millionMay 2016

@spencerrascoff

Source: Google Analytics and Omniture

ZILLOW GROUP MONTHLY UNIQUE USERSQuarterly 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 bestand invest in their success with innovative products and services

Drive efficiency with technologythrough the Premier Agent App, Dotloop and Bridge Interactive

@spencerrascoff

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Strategic focus for Premier Agents

Take big swingsand invest in technologies that transform the home search

Think long-termwith products that anticipate consumer and agent needs

@spencerrascoff

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