after closing on them. The companies even acknowledge that they make minimal improvements to properties over just a few weeks before relisting them. It's a volume game — and iBuyers have spent billions on tens of thousands of homes in hot pandemic housing markets like Phoenix, Las Vegas, Atlanta, Tampa, and elsewhere.
Trying to time the market is difficult, and betting that prices will continue to increase indefinitely is tricky for anyone. But the strategy of flipping homes en masse, which emerged when Opendoor was founded in 2014 and rose to popularity at the start of the pandemic, has not had to endure a housing-market downturn — until now.Last spring, the Fed raised interest rates and the cost of taking out a mortgage climbed.
Opendoor shares were down after last week's earnings, opening at $1.45 a share on Tuesday. The company's stock is down 85% from the same period last year.