YOUTUBE VIDEO First Zillow. Now Opendoor. Largest Homebuyer in America CRASHES by 40%.
Opendoor – the largest Home Buyer in America – has seen its stock price CRASH by 40% over the last month. Could a US Housing Market Crash be NEXT?
The company purchased 15k homes across the US Housing Market in Q3 2021, are seeing their stock price collapse over the last month, going from $24/Share in late October to $14/Share today. That’s a massive 40% crash and suggests that Wall Street is predicting a potential Housing Crash.
Opendoor is following in the footsteps of Zillow, who also experienced a similar crash in stock price last month. Why are these companies struggling so much, while the NASDAQ Composite is only down by 3% in the same span?
It could be that there’s a prediction for 1) Fewer Home Sales and 2) Home Prices Declines across the US Housing Market. If Home Sales and Prices were to go down, it would likely mean reduced revenue for both Opendoor and Zillow. And thus Wall Street is selling out of their stocks before the Housing Crash occurs.
Interestingly – not all real estate-related companies are crashing. Invitation Homes, the largest homeowner in America, is flat over the last month. While DR Horton, the biggest homebuilder, is actually up by 15%. This suggests that there’s some nuance to how the Stock Market views the future of US Real Estate.