Byron Lazine and Nicole White began this week’s episode by discussing Opendoor selling at a loss, the Zillow lawsuits, the next Fed meeting and inflation’s impact on the midterm elections.
Byron Lazine and Nicole White are two agents in Connecticut who give us their thoughts on the week’s news every Friday in “The Real Word,” a weekly video column on Inman.
Byron Lazine and Nicole White began this week’s episode by discussing Opendoor selling at a loss, then Zillow lawsuits, the next Fed meeting, and inflation’s impact on the midterm elections.
Racket No. 1: Opendoor selling at a loss
After outpacing the competition, Opendoor is now selling homes for less than their purchase price. White said that she is a little surprised that Opendoor is selling at a loss and wonders if Opendoor has been overpaying similar to the way that Zillow was before the end of its Zillow Offers program.
Lazine said that he did not have data to indicate that Opendoor is doing the same, but he would bet that whoever is “checking” the algorithm at Opendoor has not been in real estate investing and is not in the local markets to see where the holes in Opendoors’ calculations are.
Racket No. 2: Zillow sued for violating wiretapping laws
According to a complaint filed in federal court in Washington, Zillow’s recording of consumer interaction with its website violates wiretapping laws. Lazine said that he assumes the lawsuit will be settled, Zillow has tons of data on its website. “Don’t sneeze” at the capability that gives them, especially because consumers trust them. Use that trust factor to educate consumers.
Left, middle, right:
Treasury yields rise to new multiyear highs, stock futures slip
This article from The Wall Street Journal talks about the ongoing rise in the 10-year treasury yield, which is continuing to drive mortgage rates. Lazine said that we could be heading to 7 percent and above, which is such a huge swing from the low 2’s we see early in the year. “Bundle up, agents.”
Inflation will pick midterm election winner in November
“Let’s assume this to be true,” Lazine said about this article from Fox News. For those of you who have cash or who have access to cash at good terms, go all in this winter and buy real estate. “Once we get past the hysteria of this election, things will start to improve next year, and we won’t have these opportunities forever.” White said she just wants to do some deals and renovate them.