Which iBuyer Could Stage A Recovery In 2023, Opendoor Or Offerpad?


  • Opendoor and Offerpad are both down by around 93% year-to-date.
  • Their disruptive home-buying model looks set to get discombobulated by the falling real estate prices next year.
  • High leverage ratios against rising interest rates have rendered a new position in both companies as too high risk.

Freshly Painted Craftsman Bungalow House

adamkaz/iStock via Getty Images

iBuying was meant to be a straightforward, more convenient, and ultimately less frictional way for people to sell and buy homes. Both Opendoor (NASDAQ:OPEN) and Offerpad (NYSE:OPAD) use information supplied by homeowners

Data by YCharts

Primary Mortgage Market Survey

Freddie Mac

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Leave a Reply

Your email address will not be published. Required fields are marked *