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Zillow has suffered its first major setback which is no real surprise to professional real estate agents. They have announced the termination of their home acquisition business and a Wall Street analyst concluded they have thousands of properties that they own that are now worth less than the purchase price. The key point is not that they made a terrible business move, rather whether or not this is the first indication of a major setback in the real estate market which has experienced worrisome price inflation.
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