(Reuters) – Shares in Zillow Group Inc (NASDAQ:) fell to over a year after it announced that it will stop buying homes this year due to labor shortages.

Through its Zillow Offers division, the company buys houses from homeowners. It then repairs them lightly, which requires contractors and inspectors. The company then posts the houses for sale on their platform.

Zillow shares plunged as low as 11.4%, to $93.54, in early trading. It was their lowest point since September 2020.

A tight job market, supply chain issues, and a shortage of raw material have caused a slowdown in U.S. Housing Sector, which had previously experienced a boom.

It has caused real estate rates to skyrocket, with the average U.S. property price increasing by nearly 15% in August compared to one year prior.

BofA Securities wrote in a note, “We think Zillow’s decision may be affected due to slowing home sales and the inability of the company to sell through at a similar rate as it is acquiring”

Zillow (which operates the home value model Ziestimates) said that it was clearing a backlog. It bought 3,805 houses in its second quarter.

Analysts believe Zillow’s decision could open up to competitors like Opendoor (NASDAQ) Technologies Inc for market share.

Opendoor could gain a substantial share if it operates better, Ygal Arounian, a Wedbush analyst said in a note.

After merging with Chamath Palihapitiya, a venture investor, the company went public. It bought 8,494 houses in the second quarter.

Opendoor shares increased 2.6% during afternoon trade while Zillow shares dropped 8.5%