Opendoor has continued to buy a high volume of homes through the downturn and sellers should probably be grateful that it has soaked up so much of the growing supply. Here is a chart showing the daily counts of Opendoor listings on ARMLS. Only active (without a contract) and Under Contract (Pending, UCB, CCBS) are shown.

Opendoor has built up an inventory of 1,254 active listings, by far its largest total since it started operation in 2014. The previous record active listing total was 638 in January 2019.

The weakening demand has affected Opendoor as much as anyone with only 197 listings under contract as of today. This is the lowest total since last July.

The contract ratio is 100 * 197 / 1254 = 15.7 This is a cold reading and indicates that Opendoor's supply is far in excess of its demand. While it has done other sellers a favor by continuing to buy homes, it has amassed a large inventory of homes that are going to take a long time to sell. The contract ratio was a hot 120 as recently as the end of January and 109 in early April. The second half of April was when troubled started.

Opendoor's current active listing count represents over 5 months of supply at the current monthly sales rate. It also represents about 9% of all active listings on ARMLS while their homes under contract represent less than 3% of ARMLS.

Of course Opendoor's total inventory is higher than the active listings on ARMLS, because many homes they have purchased are still being prepared for sale. Based on deeds recorded, we estimate there are a total of 2,034 homes in inventory of which 1,254 are active and 197 under contract. This leaves 583 in their "shadow inventory" being prepared for sale. This means they have a total of about 8 to 9 months of supply at their current monthly sales rate.


Market incites provided by the Cromford report.