Execs predicted a loss was coming, but now we’re getting a better sense of Opendoor’s stability.
A new report out from YipitData found that Opendoor lost money on 42 percent of its transactions in August. The iBuyer took some of its biggest hits in Los Angeles and Phoenix, where 55 percent and 76 percent of sales took a financial hit, respectively.
Opendoor had predicted that the company would lose between $125-$175 million in Q3 based on adjusted earnings before interest, taxes, depreciation and amortization.
“We provided third quarter guidance in our last earnings to reflect lower-than-normal transaction volume and home-price appreciation, as well as longer than normal hold times for our inventory associated with the most rapid change in residential real estate fundamentals in 40 years,” an Opendoor representative said in a statement provided to Bloomberg. “We have moved quickly and decisively to prioritize inventory health and risk management.”