Offerpad stock reaches its lowest level ever on Wall Street

Offerpad stock continued its ongoing slide during early trading hours Friday, as stock for the iBuyer fell to its lowest ever value since going public last year.

Shares dropped below $3, down more than 7 percent as of mid-morning, following steep declines this year and a tumultuous week. 

The company’s stock has fallen more than 70 percent from its premier on the New York Stock Exchange last fall, when it was valued at $2.7 billion.

It’s not the only publicly traded real estate brand to face headwinds in the market in January, but it is leading the pack.

“Real estate was another sector that we’d identified as overvalued,” said Dave Sekera, chief U.S. market strategist for Morningstar. “I’m not surprised seeing a market pullback from a broad perspective and in that pullback seeing those sectors that we thought were the more overvalued sectors sold off more than the broader marketplace.”

The Dow Jones Industrial Average is down about 7 percent in the month of January. The Nasdaq is down 15 percent, and the S&P 500 is down about 10 percent year-to-date.

The major publicly traded real estate brands, meanwhile, are down significantly this year, with Opendoor down about 44 percent year-to-date, eXp down 33 percent, Zillow down 28 percent and Redfin down 35 percent.

Real estate shares appeared headed for a disastrous Monday before rebounding and finishing slightly higher.

Another economist said this week the markets may be responding to the expectation that rising rates will slow price growth and cause a slight drop in home sales in 2022.

“The expectation nationally from analysts including myself is that it’s unlikely that we’re going to see much in the way of gains from that,” said Matthew Gardner, chief economist with Windermere. “That unto itself puts some limitations obviously on share price. You’re not increasing.”

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