Opendoor Owns Over 1,000 Homes in 2022!
Opendoor is losing a lot of value! Opendoor is a company that buys homes and turns right around to sell them at a profit. It’s currently selling over 600 homes in the Austin area alone. With their business model, they will have purchased the vast majority of these at or near the peak of the real estate market. If you are an individual selling a home that you bought 10 years ago, the recent 10% decline in home prices isn’t nice, but you’re still well ahead. But if you just bought the house, it’s a different story. Multiple this scenario by over 600 and the losses Opendoor has incurred recently must be big. Now multiple this by the number of markets they’re in around the country, and you’ll understand why their stock price is down 70% over the past six months. While a year ago Opendoor was overpaying a lot for homes, they’re now offering significantly lower prices to buy them. They have a lot of cash on hand, but they also burn through cash quickly, so it will be interesting to see what happens.