According to the Information Market, Opendoor lost money on 89% of the homes it sold in the 4th quarter of 2022 in metro Phoenix – an average of $58,000 apiece, before accounting for fees and expenses. For example, a home sold by Opendoor in November for $485,000 that was bought for $646,800 – a 25% loss in just five months. In November, Opendoor wrote down its real estate portfolio by $573 million, and as of the last week in January 2023 its shares had fallen 94% since their high in February 2021. In metro Phoenix ibuyers purchased 369 homes in February 2022 – in the same month in 2023 they bought only 20. Nationwide, investor purchases of U.S. homes fell a record 45.8% year over year in the fourth quarter. To show how bad that was, the decline was worse than the investor pullback that occurred at the beginning of the Great Recession in 2008. Likely only a few ibuyers will survive their poor 2022 buying decisions.
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2720 East Camelback Road
Suite 150
Phoenix, AZ 85016
480-675-0112
Suite 150
Phoenix, AZ 85016
480-675-0112