Opendoor CEO: Our algorithm couldn't predict steep decline in housing market

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The cooldown in home prices was a 'once-in-40-years' move, worse than the 2008 crisis that foiled algorithms, said the CEO of America's largest home-flipper

Home-flipping giant Opendoor buys homes from sellers and uses technology and data to alleviate the hassles of the home-selling process for users.

The 2014-founded company relies heavily on past housing data to help accurately price homes and make future predictions. Opendoor's forecast did factor in higher interest rates, according to Wu, but not for home price appreciation to shift alongside it.

 

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I work in the industry and it was easy to see. Don’t know why were giving a CEO of a public real estate company the excuse. Outsiders don’t understanding Real Estate even the Tech Entreoenuers

Their algorithm was always garbage. Everyone on the ground saw them overpaying for properties with little to no insight into reno costs and just blindly assuming historically unprecedented appreciation rates of 20-40% would just magically keep on going.

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