Latest news with #housingboom
Yahoo
30-07-2025
- Business
- Yahoo
Dear Opendoor Stock Fans, Mark Your Calendars for August 5
Opendoor Technologies (OPEN) has long been one of the market's hardest-hit stocks. Once a standout during the pandemic housing boom, the online home-flipping company collapsed under the weight of rising interest rates and a frozen housing supply. Most homeowners are still locked into rock-bottom mortgage rates and have little incentive to sell, leaving Opendoor's business model badly exposed. OPEN stock has nosedived 94% from its 2021 peak. But 2025 brought a dramatic shift. In mid-July, hedge fund manager Eric Jackson, best-known for his early bullish call on Carvana (CVNA), publicly threw his support behind Opendoor on X. Citing deep cost cuts and long-term upside, Jackson's endorsement lit a fire under OPEN stock and brought a wave of retail attention. What followed was a classic meme stock surge. Online forums lit up with Opendoor chatter, triggering a massive short squeeze as bearish traders rushed to cover their positions. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! In the past month alone, OPEN stock has delivered a massive triple-digit return. But despite the surge, the company's fundamentals remain largely unchanged. Opendoor is still a cash-burning, low-margin business with limited near-term growth. So, with its second-quarter earnings report around the corner, here's a closer look at this name. About Opendoor Stock Opendoor is a leading digital platform for residential real estate transactions. Since 2014, the company has set out to become the Amazon (AMZN) of the housing market through iBuying, a model where homes are bought and resold via an online marketplace. Opendoor went public through a special purpose acquisition company (SPAC) merger in late 2020 and currently has a market capitalization of roughly $1.7 billion. The stock has been in hot water for quite a while, but the recent meme frenzy, combined with hedge fund manager Eric Jackson's vote of confidence, couldn't have been better timed. In late May, the company was hit with a delisting warning from Nasdaq after its shares traded below $1 for 30 consecutive business days. With 180 days to regain compliance, Opendoor moved quickly, proposing a reverse stock split in early June that could boost its share price by as much as 50 times. That being said, with the clock ticking, the sudden burst of investor enthusiasm couldn't have landed at a more critical moment. After years of underperformance, the stock is now up 28% this year, easily outpacing the S&P 500 Index's ($SPX) year-to-date (YTD) gain of 8%. Over the past month alone, OPEN shares have soared an eye-popping 267%, leaving the broader index's 3% return in the dust. Opendoor's Q1 Earnings Beat and Q2 in Spotlight On May 6, Opendoor released its fiscal 2025 first-quarter results, and the numbers came in stronger than Wall Street had anticipated. Revenue totaled $1.15 billion, down 2.4% from the same period last year but still comfortably above the consensus estimate of $1.06 billion. For a business built around iBuying — the practice of purchasing and reselling homes online — revenue can often look impressive even when profits don't follow. That's why investors tend to look deeper, focusing more on profitability and cash flow than just the top line. In that regard, Opendoor showed encouraging signs of progress. The company trimmed its adjusted net loss by 21% to $63 million, while its net loss per share improved 25% to $0.12, beating analyst expectations of a $0.13 per-share loss. More notably, Opendoor managed to cut its adjusted EBITDA loss to $30 million, a sharp improvement from the $50 million loss it reported a year ago. These numbers reflect ongoing efforts to rein in costs and streamline operations. Operational momentum also showed up in its home activity. The company purchased 3,609 homes during the quarter, a 4% increase from the first quarter of 2024 and a 22% jump sequentially. As of quarter-end, Opendoor held $559 million in cash, providing it with some financial breathing room to support short-term operations. Looking ahead, Opendoor is scheduled to report its Q2 earnings after the market closes on Tuesday, Aug. 5. Management has guided for revenue in the range of $1.45 billion to $1.53 billion and expects contribution profit to land between $65 million and $75 million. Analysts, meanwhile, forecast a significant improvement in the bottom line, with a projected Q2 net loss per share of just $0.04 representing a 56% annual improvement. For the full fiscal year, losses are expected to narrow by 55% to $0.24 per share, and further shrink to a $0.23 loss in fiscal 2026, signaling a gradual path toward stability. What Do Analysts Expect for Opendoor Stock? As the countdown to Opendoor's Q2 earnings ticks on, Wall Street is treading carefully. OPEN stock holds a consensus 'Hold' rating, underscoring a wait-and-see approach. Of the 10 analysts covering the name, only one is all-in with a 'Strong Buy,' seven play it safe with a 'Hold,' one suggests a 'Moderate Sell,' and the remaining analyst sounds the alarm with a 'Strong Sell.' Currently, the stock trades at a premium to its average analyst price target of $1.14. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
25-07-2025
- Business
- Yahoo
Selling your home at a loss? Everything you need to know before you list.
During the pandemic-era housing boom, bidding wars and over-asking-price offers became the norm. However, some buyers may face a tough reality today: They need to sell — but at a loss. Whether you're facing a job change, financial hardship, or another one of life's twists and turns, taking a hit when selling your home is never ideal. However, it's not the end of the world, and you may have options that put you ahead financially. Read more: The best mortgage lenders for bad credit scores In this article: Reasons for selling a house at a loss How to know if you're actually taking a loss Options if you're facing a loss When it might make sense to sell at a loss Tax implications to note FAQs Reasons for selling a house at a loss Not every home sale ends in profit, especially if you haven't owned your home for very long. Even in a strong housing market — like the one we're in today — it's possible to walk away with less than you put in for several reasons. You lack equity If you bought your home with a low down payment using mortgages like VA loans or FHA loans, you didn't have much equity in your house to begin with. And in the early years of homeownership, most of your early mortgage payments go toward interest rather than paying down the principal. Selling in the first few years means you likely won't have built up much equity, and selling costs can easily wipe out what little you have. Your local housing market has cooled off Home values don't rise evenly throughout the country. If prices in your area have stalled or dipped while prices in other regions have continued to rise, your home might sell for less than you paid — especially if inventory has increased, buyer demand has slowed, or there's some other reason for depreciation. Life changes force a move Sometimes the decision to sell isn't about money; it's about necessity. A new job, growing family, unexpected expense, or divorce with a co-owner of the house can create pressure to sell before you're financially ready. Selling costs add up Between commissions, closing costs, and other expenses, selling a house often costs 6% to 10% of the sale price. Those fees alone can quickly turn a small gain into a net loss. How to know if you're actually taking a loss It's easy to assume you're losing money on your home if it sells for less than you paid. However, that's not the whole story. To really know where you stand, you'll need to do a little math and factor in a variety of costs. Your purchase price: This includes what you paid for the home, plus the cost of any upgrades or improvements you made while living there. Your current mortgage balance: Your remaining loan balance may be more than you expect, especially if you haven't owned the home very long. Estimated selling price: This is what a buyer is willing to pay in your current market, not necessarily what you'd like to get. Agent commissions: A typical real estate commission for sellers is 6%, as sellers have historically covered both the seller's and buyer's shares (or 3% each). Now, sellers aren't necessarily required to pay buyers' agent fees, so depending on your situation, you could find yourself paying roughly 3% to 6%. Closing costs: These can include, but aren't limited to, the title search, escrow fees, and real estate attorney fees. Repairs and prep work: From painting and cleaning to various other home improvements you pay for before listing the home, don't forget to include these costs in your total expenses. Dig deeper: How much does it cost to sell your house? A real-world example Let's say you bought a home in 2021 for $460,000 and put 5% down ($23,000). From the get-go, your mortgage loan balance is $437,000, and you start making monthly payments toward the principal and interest. Now, you're the new caregiver for your aging parents and need a bigger home. Your real estate agent says the best asking price you can get on your current house is $445,000, and you still owe $420,000 on your mortgage. You pay a 3% agent commission (~$13,350), $6,500 in closing costs, and another $2,000 to get the house ready for sale. Here's how it all breaks down: So, even though you sold your home for $15,000 less than you paid, your final loss on the transaction is $3,150 — not counting your original down payment and the mortgage payments you made along the way, which helped you gain equity in the home along the way. Up Next Up Next Options if you're facing a loss If the math shows you're selling your house at a loss, you still have choices. Some may help you avoid selling altogether, while others can help you strategically cut your losses. Stay put and ride it out If you're not in a rush to move, holding onto your home for a few more years could help you build equity and recover value. You could also save significantly if you locked in a lower mortgage rate when you bought the house than those available today, making your current payment more affordable than one you might get on a new home. Rent it out Becoming a landlord isn't for everyone, but depending on your local real estate market, it could be a highly profitable move. 'Some would-be sellers simply can't believe what their units would rent for when I tell them,' said Mark Zipperer, owner and broker with The Zipp Group in Chicago, in a phone interview. Rental income could more than cover your current mortgage and still let you make the housing move you want, especially if you live in a major metropolitan area where competition for rentals is fierce. 'Here in Chicago, we're doing open houses for rentals and getting upwards of 20 applications per unit,' said Zipperer. 'Prospective renters are even bidding up the rental price in hopes of being selected for the unit.' While Chicago's market might not reflect yours, there's no harm in checking into what your unit would rent for. If you decide to go the landlord route, Zipperer also advised getting up to speed on local rental ordinances so you're legally protected. You can also work with a property management company if you'd prefer someone else to handle the day-to-day details and legalese on the rental side. Consider a short sale If you owe more than your home is worth, you may be able to negotiate a short sale with your mortgage lender. With a short sale, your home sells for less than the mortgage balance, and the lender agrees to forgive the difference. Short sales typically require that you be behind on your mortgage payments and require lender approval. This move can also impact your credit — a consideration if you're looking to short sell and then buy another home. Bring cash to closing If you're close to breaking even, you could bring money to the closing table to cover the gap. It's not ideal, but it might prove a good strategy if selling will free you up to make a better financial decision elsewhere, such as relocating for a better job. When it might make sense to sell at a loss In some cases, taking a loss isn't a sign of financial defeat — it's a strategic move. Here are times to consider selling your house at a loss. You're struggling with monthly expenses. Selling a home you can't comfortably afford may hurt now, but it could help you get back on firm financial footing sooner. You're relocating for a better opportunity. A higher-paying job, lower living costs, or being closer to family may all justify the short-term loss. You're facing changing household needs. A growing family, aging parents, or accessibility needs might mean your current home no longer fits. It brings you peace of mind. Shedding an asset that feels like a burden could lighten your financial burden and spirits. Dig deeper: Do you have home buyer's remorse? Here's what to do next. Tax implications to note If you're thinking, 'Oh, I'll just write the loss from selling my home off on my taxes,' think again. In most cases, the IRS doesn't allow you to deduct a capital loss on the sale of your primary residence on your federal taxes. However, if the home you want to sell was used as a business or rental property rather than a personal residence, it's treated differently by the IRS. Losses in those cases may be deductible depending on your tax situation. To be safe, consult a licensed tax professional. Read more: Capital gains tax — How much you'll pay when you sell a home Selling a house at a loss FAQs What happens if you sell a home for a loss? If you sell a home for less than your remaining mortgage balance and sale costs, you'll need to cover the difference out of pocket. This is considered a financial loss, but it won't impact your taxes unless the home was a rental or investment property. If you're behind on payments, a mortgage lender may agree to a short sale; however, this can negatively impact your credit. Can I write off a loss on my house? Generally, no. The IRS does not allow you to deduct a loss from the sale of your primary residence because it's considered personal-use property. However, if the home was used as a rental or business property, a loss may be deductible under certain conditions. Always consult a tax professional to understand how the rules apply to your situation. Should I sell my house at a loss or rent it out? Renting your home could help you avoid selling it at a loss, especially if it covers your mortgage and other costs. However, being a landlord comes with its own responsibilities and risks. Be sure to speak with a real estate professional well-versed in rentals in your area before jumping into the rental market with your property. Note: The author has bought and sold property through Mark Zipperer. Laura Grace Tarpley edited this article.
Daily Telegraph
12-06-2025
- Business
- Daily Telegraph
Boom to bust: home prices plunge in key Sydney suburbs
They're the suburbs Sydney's fledgling housing boom forgot. Property prices in some of the city's most coveted suburbs have plummeted over the past year despite falling interest rates igniting another surge in real estate values across the rest of the market. Median price falls of up to $750,000 in coastal and well-connected inner suburbs have largely been the result of buyers turning to more affordable markets amid cost of living pressures. This reduction in demand – at a time of rising listings – has put pressure on sellers in up-market areas, while buyers in these markets had more room to negotiate. PropTrack data indicated the largest falls over the past year were in eastern suburbs Vaucluse, Waverley, Woolloomooloo and Darlinghurst and in northern beaches suburbs Manly and Fairlight. Prices in these markets all fell by an average of more than 14 per cent over the past year, which given the inflated prices, delivered buyers significant savings. Manly house prices were an average of close to $750,000 lower than a year ago, while in neighbouring Fairlight the difference was about $600,000. Other suburbs with major falls, reported at between 10 and 14 per cent, were Cammeray, Cremorne, Gordon, Kirribilli, Neutral Bay and Lindfield, on the north shore. There were also large price falls for units in southern suburbs Blakehurst, Woolooware and Kingsgrove and for houses in Glebe and Strathfield South, in the inner west. REA Group economist Eleanor Creagh said a complex set of forces pushed down median prices in many up-market areas, but one of the biggest factors was looming uncertainty about the global economy. 'Buyers in some premium markets may have been more cautious,' she said. 'These buyers are typically less sensitive to mortgage rates and more responsive to broader macro-economic factors. 'With recent uncertainty around the economic outlook and volatility in equity markets, some high-end buyers may be exercising caution (and) delaying upgrade decisions.' Ms Creagh said this contrasted with a recent rise in spending across the cheaper end of the market. 'More affordable markets … have seen renewed activity since the Reserve Bank's February and May rate cuts, with improved borrowing capacity lifting prices.' Ms Creagh noted that some annual price figures may be somewhat skewered by weakness in the market late last year, just prior to rate cuts, and shifts in the types of homes getting sold. Auctioneer Damien Cooley – the director of Cooley, one of Sydney's biggest auction houses – said the type of housing stock coming to market was playing a part in prices. 'A-grade' homes that ticked all the boxes for buyers were still selling well even in up-market areas. But there was also a high share of listings for 'C-grade' and 'D-grade' homes – properties with major drawbacks – and these were struggling. 'Sellers of C-grade homes are getting crucified,' he said. 'Buyers are not interested in a lot of these properties unless they can get them for bargain basement prices.'
News.com.au
12-06-2025
- Business
- News.com.au
Boom to bust: home prices plunge in key Sydney suburbs
They're the suburbs Sydney's fledgling housing boom forgot. Property prices in some of the city's most coveted suburbs have plummeted over the past year despite falling interest rates igniting another surge in real estate values across the rest of the market. Median price falls of up to $750,000 in coastal and well-connected inner suburbs have largely been the result of buyers turning to more affordable markets amid cost of living pressures. This reduction in demand – at a time of rising listings – has put pressure on sellers in up-market areas, while buyers in these markets had more room to negotiate. PropTrack data indicated the largest falls over the past year were in eastern suburbs Vaucluse, Waverley, Woolloomooloo and Darlinghurst and in northern beaches suburbs Manly and Fairlight. Prices in these markets all fell by an average of more than 14 per cent over the past year, which given the inflated prices, delivered buyers significant savings. Manly house prices were an average of close to $750,000 lower than a year ago, while in neighbouring Fairlight the difference was about $600,000. Other suburbs with major falls, reported at between 10 and 14 per cent, were Cammeray, Cremorne, Gordon, Kirribilli, Neutral Bay and Lindfield, on the north shore. There were also large price falls for units in southern suburbs Blakehurst, Woolooware and Kingsgrove and for houses in Glebe and Strathfield South, in the inner west. REA Group economist Eleanor Creagh said a complex set of forces pushed down median prices in many up-market areas, but one of the biggest factors was looming uncertainty about the global economy. 'Buyers in some premium markets may have been more cautious,' she said. 'These buyers are typically less sensitive to mortgage rates and more responsive to broader macro-economic factors. 'With recent uncertainty around the economic outlook and volatility in equity markets, some high-end buyers may be exercising caution (and) delaying upgrade decisions.' Ms Creagh said this contrasted with a recent rise in spending across the cheaper end of the market. 'More affordable markets … have seen renewed activity since the Reserve Bank's February and May rate cuts, with improved borrowing capacity lifting prices.' Ms Creagh noted that some annual price figures may be somewhat skewered by weakness in the market late last year, just prior to rate cuts, and shifts in the types of homes getting sold. Auctioneer Damien Cooley – the director of Cooley, one of Sydney's biggest auction houses – said the type of housing stock coming to market was playing a part in prices. 'A-grade' homes that ticked all the boxes for buyers were still selling well even in up-market areas. But there was also a high share of listings for 'C-grade' and 'D-grade' homes – properties with major drawbacks – and these were struggling. 'Sellers of C-grade homes are getting crucified,' he said. 'Buyers are not interested in a lot of these properties unless they can get them for bargain basement prices.'
