Another article showing concern in the housing market- yet the author may have lacked critical thinking

GON

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Opendoor Technologies Inc. (OPEN)
$1.5050/sh -0.2300 (-13.2565%)
As of 10:11AM EST. Market open.
I never heard of Opendoor until I saw your post a few moments ago.

Instead of researching the company- I researched the executive compensation. Executive compensation will tell me if Opendoor was built to "take the money and run"- or was executing a long term business plan through market cycles. Looking at the top guy's compensation- Opendoor appears to have been built to "take the money and run". I think this is the case with many in the real estate business. Make a decade of money in one year- and go bankrupt the following year.

Opendoor
Eric Wu CEO
2021 compensation- $112,333,540
2020 compensation-$370,240,992
2019 compensation- $275,000
 
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I never heard of Opendoor until I saw your post a few moments ago.

Instead of researching the company- I researched the executive compensation. Executive compensation will tell me if Opendoor was built to "take the money and run"- or was executing a long term business plan through market cycles. Looking at the top guy's compensation- Opendoor appears to have been built to "take the money and run". I think this is the case with many in the real estate business. Make a decade of money in one year- and go bankrupt the following year.

Opendoor
Eric Wu CEO
2021 compensation- $112,333,540
2020 compensation-$370,240,992
2019 compensation- $275,000
Check out Carvana. Same stuff except cars instead of houses. Also about to go bankrupt.
 
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simpsons_004.jpg
 

GON

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That housing marketplace itself is currently displaying worse case dimensions of a normalized/ typical housing market. I am tracking prices/ sales in over a dozen locations west of the Mississippi river and am not seeing any quantitative stress on housing prices., when using JAN 2021 as a marker.

Yes, if you have a home for sale, you may not get multiple offers the first day the home is listed. Yes, the Buyer will want an inspection of the home as part of the contract. Yes, the Buyer will have other homes to make an offer on if a seller is not dealing in good faith. These are all normal things.
 
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I never heard of Opendoor until I saw your post a few moments ago.

Instead of researching the company- I researched the executive compensation. Executive compensation will tell me if Opendoor was built to "take the money and run"- or was executing a long term business plan through market cycles. Looking at the top guy's compensation- Opendoor appears to have been built to "take the money and run". I think this is the case with many in the real estate business. Make a decade of money in one year- and go bankrupt the following year.

Opendoor
Eric Wu CEO
2021 compensation- $112,333,540
2020 compensation-$370,240,992
2019 compensation- $275,000
My sister purchased a townhouse from Opendoor a couple of years ago in the Nashville area and was definitely not impressed...she won't do it again.
 
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I am tracking prices/ sales in over a dozen locations west of the Mississippi river and am not seeing any quantitative stress on housing prices., when using JAN 2021 as a marker.
So far (invokes Homer Simpson meme). Give it another 1-2 YEARS and you will. The housing market isn't crypto or stocks, it moves slowly on it's way down. I would also suggest that since housing is mostly purchased on borrowed money, but stocks are not, that the housing market will fall farther than the stock market since (presumably) it's more rate sensitive.
 
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My sister purchased a townhouse from Opendoor a couple of years ago in the Nashville area and was definitely not impressed...she won't do it again.

Yah, don't (proverbially) feed the pig. Everybody hates there eBuyers and flippers and AirBnb types for ruining the housing market and neighborhoods. It's easy enough to NOT purchase their houses and NOT stay in a AirBnb.
 

GON

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I still have my old house. 8 months after buying a new one.

What a thorn in my side!
SS,

Sorry to hear that. I imagine homes in some areas like rural north east and rural upper Midwest may have some headwinds in a sale, as they often have had for the past 15 plus years.

Good luck with the sale- I will be rooting for you.
 

GON

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Watching trends closely. Every trend is showing a GAIN of no less than one percent in the average price of single-family homes in the West, mountain West, Southeast, Southwest, and South.

Home still selling at record highs, and no relief in prices in sight. And now mortgage rates are seeing declines.
 
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Zillow is not an unbiased source of real estate pricing predictions. They shut down their home flipping business because they were losing money on it.
You mean if you tell people your house is worth $300k and have a graph that says it will be worth $400k next year it doesn’t actually change how much they will offer?

Who could imagine?
 
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