Tuesday, July 19, 2022 / by Bryan Baylon
July 19, 2022 Market Update
The dramatic change in market conditions has taken their active count from a low of 72 on April 12 to 381 on July 19. This latter number has increased 58% in the last month.
We estimate that OfferPad has 453 homes in inventory, which implies there are only 27 unlisted properties. 45 are under contract which gives OfferPad a contract ratio of less than 12. On April 12, their contract ratio was 204.
Based on their monthly sales rate for June, they have about 6.7 months of homes to sell, even if they stopped buying today.
The rest of us should be grateful that the iBuyers have soaked up so many homes over the last 3 months. Without their activities the market statistics would show a much larger drop in demand than reported. It has not made a lot of different to supply since the homes they have listed would probably still be listed by their former owners if they had not sold them to an iBuyer,
It seems that the iBuyers will need to focus mostly on iSelling during the second half of 2022.
Market incites provided by the Cromford report.
