OPAD - Opendoor Offerpad real estate stocks climb after home prices rise in April

2023-06-27 12:53:22 ET

With home prices rising more than expected in April and May housing data showing that inventory remains low, stocks in home-flipping companies Opendoor Technologies ( NASDAQ: OPEN ) and Offerpad Solutions ( NYSE: OPAD ) surged Tuesday afternoon.

They're riding the upswell in real estate stocks overall after three economic reports showed surprising strength in home sales and home prices — the S&P Corelogic Case-Shiller index , the FHFA House Price Index , and May new home sales .

Rising home prices make it easier to turn a profit when flippers buy a house, renovate it, then sell it. Conversely, home-flipping stocks slumped when home prices became more volatile and declined, making it harder to value potential purchases with an eye to sell it at a profit.

Opendoor Technologies ( OPEN ) stock jumped 14% in Tuesday midday trading, after dropping 48% in the past year. Offerpad ( OPAD ) climbed 9.3% after a 78% plunge in the past year.

Real estate brokerage stocks also benefited from the day's news — eXp World Holdings ( NASDAQ: EXPI ) gained 6.6%, Re/Max Holdings ( RMAX ) +3.1% ; Redfin ( NASDAQ: RDFN ) +7.5% ; Anywhere Real Estate ( NYSE: HOUS ), +3.5% .

Zillow ( NASDAQ: Z ), which exited the home-flipping business in 2021, rose 4.5% .

More on Home Flipping Stocks:

• Top 10 Mid-Cap Performers of 2023
• Opendoor Is Tumbling Down: The Debt Strains Examined
• Opendoor: Rising With the Tide - Only for Speculative Buyers
• Offerpad Solutions: A Victim of Timing

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