Zillow‘S decided last year to jump out of this burning house suddenly looks pretty smart.
Opendoor technology said on Thursday that its automated home flip business sold 33% more homes than expected in the third quarter but the company performed 20% less than forecast on the basis of adjusted earnings before interest, taxes, depreciation and amortization. Between one sudden and strong real estate market, the company made a “valuation adjustment” of $573 million in the quarter alone for homes in inventory. Those unrealized losses brought the company’s statutory net loss to more than $900 million for the quarter — nearly three times larger than Wall Street expectations.
