Author: Waleed M. Tariq
- Opendoor is a top digital real estate platform.
- Opendoor’s “iBuying” service lets homeowners sell without a broker or agent.
- Opendoor Complete provides end-to-end service to homeowners.
- Opendoor will lead iBuying next year, followed by Offerpad.
- OPEN’s acquisition-and-sale strategy balances growth and profitability, while OPAD has stronger profitability and less growth.
- OPEN and OPAD’s innovative platforms make me bullish.
- Zillow’s failure caused iBuying stock prices to drop sharply last month.
2022 U.S. housing market fundamentals strong
- Statista predicts the U.S. real estate industry will be $350 billion in 2021 and grow 4.21 percent by 2025.
- Forbes expects home sales to rise 6.6% and prices to rise 2.9% in 2022. 3.3 percent job market income increase and 45 million millennial first-time homebuyers will accompany this.
- The epidemic has accelerated the digitization of most industries.
- iBuying has lowered real estate expenses and obstacles.
- Millennial and Gen Z homeowners embrace digitalization. Remote job has allowed Americans to buy a property without worrying about the commute.
Opendoor’s Competitive Edge
- Opendoor has found a balance between expansion and profitability, allowing it to dominate the industry with its innovative technologies.
- The organization is spending heavily in its internal processes, vendor network, tooling, and automation for 2022 growth.
- Offerpad has larger profits since it renovates homes, which increases their market value.
- “Flex” is the company’s blend between iBuying and traditional methods. This helps clients adjust to the digital platform.
- OPAD is on the right track to increase share value by utilizing the market potential.
- The “Zillow effect” gives the equities an inherent upside, making them ideal portfolio additions.