Why Opendoor Stock Plunged 25% in April
Shares of Opendoor Technologies (NASDAQ: OPEN) stock dropped 25% in April, according to data provided by S&P Global Market Intelligence. The latest monthly housing data was negative, and it doesn't look like Opendoor's troubles will end anytime soon.Opendoor's troubles began when interest rates were raised and the housing market started to decline. It's been several years now, and Opendoor continues to experience challenging conditions. Although there has been some progress in its business, the most recent housing market data shows a bleak environment and depressing outlook.According to Redfin data, home prices are at record highs, and mortgage applications declined 6% year over year in April. Pending home sales were down 2.8%. The median U.S. monthly housing payment is $2,870, a record high, due to a combination of increasing home prices and high interest rates, and homebuyers can't keep up. An added aggravation is concerns about tariffs, which will affect other costs, making it even harder for potential homebuyers to afford new homes.Continue reading
Shares of Opendoor Technologies (NASDAQ: OPEN) stock dropped 25% in April, according to data provided by S&P Global Market Intelligence. The latest monthly housing data was negative, and it doesn't look like Opendoor's troubles will end anytime soon.
Opendoor's troubles began when interest rates were raised and the housing market started to decline. It's been several years now, and Opendoor continues to experience challenging conditions. Although there has been some progress in its business, the most recent housing market data shows a bleak environment and depressing outlook.
According to Redfin data, home prices are at record highs, and mortgage applications declined 6% year over year in April. Pending home sales were down 2.8%. The median U.S. monthly housing payment is $2,870, a record high, due to a combination of increasing home prices and high interest rates, and homebuyers can't keep up. An added aggravation is concerns about tariffs, which will affect other costs, making it even harder for potential homebuyers to afford new homes.
