Where the iBuying model goes for Redfin, Opendoor, Offerpad after rapidly slowing housing market - Silicon Valley Business Journal

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The rapid cooldown of the U.S. housing market starting this summer has made the direct-homebuying business model known as iBuying a lot more challenging.

, Parcl Labs co-founder, said the company only tracks the top iBuying markets nationally, but how those iBuyers react to the changing market will be felt more dramatically in those markets.

White-hot housing markets since the pandemic, including Sun Belt metros where iBuying has been big, have seen a dramatic slowing in price appreciation since. By no means is that strictly because of iBuyers quickly repricing their inventory to sell, but the share of homes owned, and now being sold, by iBuyers can be an influencing factor in metros where they have a bigger share of the market, said"I think it may move the needle in some of these markets," she said.

DelPrete said iBuyers may look to introduce more asset-light programs, as keeping homes on a balance sheet has proven a huge risk amid the recent market downturn. But the current housing market is proving to be a rigorous stress test for startups and business models that launched or grew amid an unusually hot housing market from the Covid-19 pandemic.

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Where the iBuying model goes for Redfin, Opendoor, Offerpad after rapidly slowing housing market - Phoenix Business JournalThe rapid cooldown of the U.S. housing market starting this summer has made the direct-homebuying business model known as iBuying a lot more challenging.
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