And that’s how the product is discussed and used is when I’m sitting at the kitchen table, this is something I offer that other agents can’t offer. This is why you should list with me. And so that economic value, in addition to helping the seller showcase their home, the best helps the agent showcase themselves, and so we get excited about really helping grow the listing side of our business through tools like that. We’ll continue to update you as we make progress, but stay tuned for kind of expansion into more markets into next year.
Lloyd Walmsley: All right. Thank you.
Operator: Our next question comes from Ryan McKeveny from Zelman & Associates. Ryan, please go ahead
Ryan McKeveny: Hey, guys. Thanks for taking the question and all the details. Within the commentary you gave in the letter on touring, you mentioned real-time touring is expected to be live and about 10% of or covering about 10% of total connections in the year. I’m curious, are you able to give a similar staff on the share of connections that are happening at the 9 enhanced markets? I assume similarly a small piece of the pie that are enhanced at this point. But any specifics you can share on that?
Jeremy Hofmann: Ryan, just to make sure you, the question you’re asking is how much of our enhanced markets is in, the connections are in real-time touring?
Ryan McKeveny: More so just kind of how much coverage do the enhanced markets today of the total pie? You’re talking about accelerating the growth opening more enhanced markets in 4Q and into ’24. And I’m just trying to think about almost like how low is the base today in terms of the enhanced market to think about the opportunity going forward to expand that.
Jeremy Wacksman: Yes. Thanks for the clarification. I mean the enhanced markets, the 9 that we’re just now in, right? And so prior to this quarter, the 6 that we rolled out, it’s a small percentage of overall connections, I want to say, in the teens maybe. And then what Jeremy Hoffman was alluding to is, obviously, a real-time touring experience is not going to be available on 100% of customers. Not every customer requests a tour and then not every customer agent relationship fits the eligibility criteria. So that’s a bit why we gave the color that as we ramp into the, I think, 90-odd markets into ‘24 we expect that will cover about 10% of our customers. And again, it’s not simple math. Different markets have different eligibility, different density, different ability to serve.
We’ve talked a lot about the reason we’re going market by market is because you’re rolling out a new workflow for agents and teams and you’re training them on a new experience, deliver for the customer ends up being great and we get great feedback from those agents because they’re now meeting the customer where they want to be met, that appointment set is really when they want to get versus a request, as Rich talked about. And so the customer is happier and the work with rate, the number of times the agent can work with the customer goes up. And so those are all great indicators of transaction share gains and happier customer agent relationships. But it’s not just this linear path of lighting up on more pages on the website, it is kind of market by market.
Ryan McKeveny: Got it. Okay. That’s very helpful. And then one question on mortgage. Part of it is just reiterating that, I think you said for 4Q that you’d see or expect to see revenue growth. But is that implying that your origination growth, roughly 90% this quarter. The revenue piece down slightly year-over-year, and you called out the mortgage marketplace declines are kind of the offset there. I guess are we reaching the point where origination growth should similarly translate to revenue growth? Like you said expected to begin in 4Q and then presumably going forward, if origination growth is, or if origination volume is growing, generally, revenue should grow going forward?
Jeremy Hofmann: Yes, Ryan, it’s Jeremy Hofmann. I’ll take that one. I think it’s fair to think about the originations business becoming more and more of the mortgages line item. So it is taking up more revenue at this point and the marketplace is decreasing. With respect ‘24 and beyond yes, our expectation is the mortgage, the VHL originations revenue will be the bigger piece of the pie, but unquestionably, marketplace is still part of the mix. So it’s not perfectly direct.
Ryan McKeveny: Got it. Okay, thank you very much.
Operator: Thank you. Our next question comes from John Colantuoni from Jefferies. John, please go ahead//
Vincent Kardos: Hey guys. Thanks for taking my question. This is Vincent Kardos on for John. Sticking on the mortgage topic here. So last quarter, I know you flagged a 50% improvement in loan ops or productivity versus 4Q of last year? And then this quarter, you grew your originations by almost 90%, 35% sequentially, but also hiring a bunch of more loan officers. Maybe you can help us think a little bit about how much of the growth there came from adding officers versus any productivity as you saw in the quarter? And then maybe talk about how much runway you see for opposite productivity given the current housing backdrop and then maybe how that could change once we get a better rate relief going forward? Thanks.
Jeremy Hofmann: Yes. Thanks for the question. It’s Jeremy Hofmann. I think we are really pleased with the way that we are growing the purchase mortgage origination business, no question about it, up 88% in a market like this. This challenge is quite impressive. I would say the ramp in loan officers, we still see opportunities for us to get more productive. We’re pleased with the productivity today, and we’re obviously hiring loan officers as a result, but we think there’s more to do as time goes on and we get to scale.
Jeremy Wacksman: Yes. And maybe just to add to that a bit. I think you should expect to see both, but you should expect to see us grow loan officer count as we scale origination volume into next year, but you should also expect us to see increases in productivity and efficiency, both on the customer experience, we’ve talked a lot in prior quarters about the huge opportunity we have with all of the customers that are coming to Zillow asking for financing questions and how can we help meet them where they are. There’s those that are ready to get a loan right now. There’s those that are not. How do we help get them all an answer? As well as the customers coming from our great Premier Agents who know best when to ask them to get financing questions answered to go right and offer on a home.
So lots of potential productivity gains there. And then there’s also lots of great factory improvements that we’re hard at work building and that’s a lot of the investments we’ve been making to just help our loan officers our processors and our team get more efficient at being ready to handle the scale of volume that we want to bring. So short answer is you should expect to see both from us and both should contribute to growth into next year.
Operator: Thank you. Our next question comes from Ron Josey from Citigroup. Ron, please go ahead.
Ronald Josey: Great. Thank for taking question appreciate. I wanted to ask on Rentals. We saw Listings grow 45% year-over-year, revenue reaccelerated multifamily traffic is growing. Just talk to us about the change that’s happening here in Rentals and the strategy here longer term? And then a quick follow-up for the team just on listing showcase. Are these buyers new to Zillow or existing, meaning I know we’re monetizing, call it a newer side of the transaction on the seller side, but are they newer existing? And then any early feedback would be helpful. Thank you, guys.
