Opendoor Q3-2022 Download Vol 2.

August wraps up the two-month Housing Demand Drought of 2022, which saw Opendoor’s sales volume crater. In my last update, I said Q3 will be the most variable quarter in Opendoor’s history, but August is the inflection point for the entire year.

Let’s rewind the tape.

In late summer many major U.S. markets fell at a velocity hitherto undreamt of.

But Opendoor buys thousands of homes each month, which means billions in inventory marked down and taxing the company monthly in interest and holding costs. And when a frothy residential real estate market met mortgage rates doubling in less than a year, demand fell off a cliff. This meant depressed transaction levels for Opendoor.

Perhaps most importantly, transacting homes is Opendoor's main engine. When inventory is suddenly worth hundreds of basis points less than purchase value, that essential mechanism grinds to a screeching halt.

So the question for real estate enthusiasts, technologists, and investors is, can Opendoor climb out of this hole?

That’s what I’ll use data to answer today.