Opendoor: A Real Estate Crash Likely Awaits Us All

Pacifica Yield
12.61K Followers

Summary

  • House prices are forecast to fall by up to 20% next year as rapidly rising interest rates render mortgages unaffordable for millions and pull liquidity out of the market.
  • Opendoor's levered business model sees the company carry houses on its balance sheet until sold.
  • Recent inflation figures show the Fed is unlikely to give up its hawkish stance as interest rates are forecast to hit 4.25%.
Boarded up small derelict house

Skyhobo/E+ via Getty Images

Opendoor (NASDAQ:OPEN) likely faces the most significant real estate crash since the global financial crisis of 2008. Rapidly rising inflation on the back of loose pandemic-era fiscal spending, supply chain disruptions, and a spike in energy due to Russia's war has led

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