AirBnb booms, Offerpad expands
Airbnb had their IPO yesterday which opened at $146/share. To give you an idea of how big that is, it closed at $158/share, which translates to a $100+ billion valuation.
That is more than the combined market caps of Marriott, Hilton, Hyatt, Wyndham, Choice, IHG, Red Lion 
and Extended Stay. Crazy.
Speaking of other companies with crazy money, iBuyer Offerpad is expanding into Denver, despite it being already crowded with other iBuyers. Opendoor and Zillow Offers opened shop in Denver in October 2018 and were joined the following May by RedfinNow and Boulder-based 8z Real Estate.
According to the Denver Post, since this summer, the metro Denver market has run hot, with most properties under $750,000 often selling within two weeks, often in a weekend. That has taken away a key advantage of working with iBuyers, a quick turnaround.
Offerpad plans to locate an office in Denver and is actively recruiting real estate talent and home renovation vendors. Here’s their Careers Page which wil show open positions once that office opens.
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America’s homeowners are seeing their personal wealth rise at record levels
CoreLogic released the Home Equity Report for the third quarter of 2020, and it’s great news.
The report shows U.S. homeowners with mortgages (which account for roughly 63% of all properties) have seen equity increase by 10.8% year over year, representing a collective equity gain of $1 trillion, and an average gain of $17,000 per homeowner, since the third quarter of 2019.
This marks the largest average equity gain since the first quarter of 2014.
However, the CoreLogic HPI Forecast shows home prices slowing over the next 12 months as new home construction and more existing for-sale homes ease supply pressures. This could moderate the pace of both home price growth and equity gains.
“The housing market has remained a strong pillar in an otherwise tumultuous economic ye
ar,” said Frank Martell, president and CEO of CoreLogic in a statement. “A sharp rise in demand, spurred by record-low interest rates, continues to bolster homeowner equity. And with many people now spending more time than ever before at home, some homeowners have tapped into their strengthening equity to fund renovations.”
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Yet, more Americans don’t think it’s a good time to buy…
Homeownership is clearly a good investment, but that’s a concept fewer Americans are buyin
g into. So yes, the latest Fannie Mae consumer sentiment survey finds fewer Americans are optimistic about the housing market. So yes, Yahoo Finance, that’s technically true. But, it’s not all bad news.
Looking at the survey directly shows that while more Americans don’t think it’s a good time to buy (From 60% down to 57%), the number of those who think it’s a bad time to buy is remaining stable (35%). So where did that 3% go?
They actually went into the bucket that still thinks it’s “somewhat” of a good time to buy; the “net good time” folks.
The decline is attributed to net decreases in three components this month: Mortgage Rate Outlook, Job Loss Concern, and Buying Conditions. According to Fannie Mae, the net share of Americans who say they are not concerned about losing their job fell by 6 percentage points, reaching the lowest level seen since June.
It’s a realistic fear that became a reality for far too many Americans. Weekly jobless claims increased by 853,000 last week versus the Dow Jones estimate of 730,000.
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