Z
illow Group’s stock fell more than 9% on Monday after reports that Google Search is testing real‑estate listings. The tests, revealed by real‑estate strategist Mike DelPrete over the weekend, show Google pulling data from HouseCanary to display full property details, tour requests and agent contact options—features that mirror Zillow’s own marketplace. The feature is currently available only in a handful of markets and on mobile devices.

    The dip reflects investors’ anxiety that Google’s entry could erode Zillow’s market share. At one point the share price dropped 11% during the session. However, analysts point out that Zillow’s reliance on organic search traffic is modest, so the immediate financial hit is expected to be limited. Wells Fargo’s Alec Brondolo, who rates Zillow equally, noted that the shift from organic to paid listings on Google is unlikely to materially affect Zillow, since the company draws most traffic from direct visits to Zillow.com, StreetEasy.com and its mobile apps. Brondolo compared the new listings to Google’s hotel metasearch model, where Google sells ad space to OTAs rather than monetizing directly with agents. He expects Zillow, Homes.com, Realtor.com and others to bid for listing ad units, keeping disintermediation low.

    Some experts view Google’s experimentation as a long‑term threat. Goldman Sachs’ Michael Ng argued that the listings function as an advertising format for buy‑side agents, directly competing with Zillow’s Premier Agent program by generating leads from prospective buyers. Ng said the impact would be gradual, as the product is currently limited to select markets and mobile browsers, but it poses a long‑term risk for portals that rely heavily on direct traffic. Oppenheimer’s Jason Helfstein added that Google’s expansion could reduce the number of users visiting Zillow.com—228 million in Q3—potentially hurting the company’s monetization. Helfstein expects the effect to unfold over several years as the feature rolls out nationwide.

    Zillow’s shares are down over 8% year‑to‑date. Neither Google nor Zillow has responded to requests for comment.