Internet cash Investors are back again to ruin the housing market

July 13, 2023

Opendoor is back with full swing buying homes.

Shares of Opendoor Technologies (OPEN -1.23%) were popping again today as the home-flipping specialist was one of the main beneficiaries of this morning's cooler-than-expected inflation report.

As a result, the stock finished today's session up 9.9%.

Collapse

NASDAQ: OPEN

Opendoor Technologies

Today's Change

(-1.23%) -$0.06

Current Price

$4.83

YTD1W1M3M6M1Y5Y

PRICEVS S&P

OPEN

KEY DATA POINTS

Market Cap

$3B

Day's Range

$4.68 - $5.14

52wk Range

$0.92 - $6.38

Volume

33,722,479

Avg Vol

25,248,381

Gross Margin

2.23%

Dividend Yield

N/A

So what

Opendoor is a real estate tech company whose primary business is flipping homes, i.e., selling them for more than it paid. That makes it particularly sensitive to interest rates and mortgage rates as home prices tend to fall when rates go up and rise as they go down.

This morning's consumer price index (CPI) report showed that year-over-year inflation rose just 3%, its slowest growth rate since March 2021, while core inflation, which excludes the volatile food and energy categories, rose 4.8%, its lowest level since October 2021.

Stocks rose broadly in response to the report, with the Nasdaq gaining more than 1% as the news makes it less likely that the Fed will continue raising interest rates.

Even better for Opendoor, the benchmark 10-year treasury yield fell 3% to 3.86%, which should help bring mortgage rates down as they're connected to treasury yields.

Now what

Opendoor stock plunged last year as mortgage rates spiked and home prices fell, but the stock now has the opportunity to take advantage of the opposite effect as other economic data shows the housing market beginning to recover and home prices now moving higher.

Competitors like Zillow and Redfin also shut their home-flipping businesses, potentially opening up more opportunities for Opendoor.

The stock has more than quadrupled this year as investors seem to be betting on a comeback.

Keep your eye on interest rates and housing market data as the stock should continue to move higher if the macrolevel data trends favorably.

Should you invest $1,000 in Opendoor Technologies right now?

Before you consider Opendoor Technologies, you'll want to hear this.

The Motley Fool Stock Advisor analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and Opendoor Technologies wasn't one of them.

Stock Advisor is the online investing service that has beaten the stock market by 3x since 2002*. And right now, they think there are 10 stocks that are better buys.

July 13, 2023

Morning chusa news, that opendoor is buying more homes in the market. Paristhithulu Emaina atu itu aithe last Oct-Dec lo laaga, okasare dump chesesthaaru and home prices will see 5-10% reduction in span of few months.