- Opendoor Technologies ( NASDAQ: OPEN ) stock slid 6.8% Tuesday regular trading hours as real estate stocks, especially those with a tech focus continue to exhibit weakness.
- As the Federal Reserve raises interest rates, mortgage rates also climb, making home purchases more expensive and pricing out some buyers. Signs that the housing market may be cooling makes pricing homes for sale less predictable as the rate of home price appreciation slows.
- On Tuesday, the S&P Corelogic Case-Shiller home price index showed the month-over-month price increase slipped to 1.8% in April from 2.4% in March. The April FHFA House Price Index rose 18.8% in April, down from 19.1% in March.
- Opendoor's ( OPEN ) iBuying service needs to determine a good price for purchasing a home than predicting how much it can get when it sells the home after a light refurbishment. Remember that in November, Zillow ( Z ) ( ZG ) bowed out of that business after it decided that forecasting home prices became too unpredictable.
- Offerpad ( OPAD ) stock, another iBuyer, fell 3.9% . Tech-driven real estate broker Redfin ( RDFN ) slid 4.6% and Compass ( COMP ) declined 4.1% .
- In the past year, OPEN has dropped 72%, Z -74%, and OPAD -76% as seen in this chart .
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Why did Opendoor Technologies stock drop today? Home price growth in question