What Happened?
Shares of technology real estate company Offerpad (NYSE: OPAD) jumped 14.3% in the afternoon session after strong U.S. new home sales data for August was released, boosting sentiment for the real estate technology sector.
The data showed that sales of new homes reached a seasonally adjusted annual rate of 800,000 units. This figure represented a significant 20.5% jump from the previous month and a 15.4% increase compared to the same period in the prior year. The median price for new homes also rose to $413,500. As an iBuyer platform, Offerpad was well-positioned to benefit from these positive housing trends, as higher transaction volumes and rising home prices can improve business opportunities and potential profit margins.
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What Is The Market Telling Us
Offerpad’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. But moves this big are rare even for Offerpad and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.2% as the stock staged a partial recovery from a steep sell-off in the previous session. The stock had previously plummeted 19.2%, driven by negative sentiment surrounding the iBuying sector. This was fueled by the ongoing struggles of its main competitor, Opendoor Technologies, and broader concerns about a cooling U.S. housing market. The sharp decline highlighted the challenges facing the iBuying business model amid significant macroeconomic headwinds. The modest gain suggested that some investors viewed the prior day's sharp drop as excessive, prompting a technical rebound.
Offerpad is up 66.8% since the beginning of the year, but at $4.47 per share, it is still trading 28.2% below its 52-week high of $6.23 from August 2025. Investors who bought $1,000 worth of Offerpad’s shares at the IPO in December 2020 would now be looking at an investment worth $29.28.
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