- Dallas, Opendoor’s second market, is doing remarkably well, while its Las Vegas market is off to a slow start.
- Knock, Opendoor’s Atlanta-based competitor, has yet to ramp up in any significant fashion.
Last December we conducted a wide-ranging analysis of Opendoor, the real estate startup that purchases homes directly from sellers. A look at thousands of MLS records formed the basis of that piece, showing trends and extrapolating insights from the data.
At the time there were a number of unanswered questions we wanted to dig into: How much money does Opendoor make per transaction; how big could the model really get in the U.S.; and does Opendoor have a sustainable competitive advantage against competitors?
Four months later I’m once again looking at the data, with these questions on my mind:
- What does Opendoor’s traction look like in its (relatively) new markets, Dallas and Las Vegas?
- Are there any notable changes in Opendoor’s fundamental business operations and metrics?
- Opendoor has two well-funded competitors in the market, Knock and OfferPad. How are they doing?
After looking at the data, there are three main observations:
- Dallas, Opendoor’s second market, is doing remarkably well. The transaction volumes there reached parity with Phoenix after only six months.
- Las Vegas, Opendoor’s third market, is off to a slow start. Key metrics suggest Opendoor is still finding its sweet spot in that market.
- Knock, Opendoor’s Atlanta-based competitor, is very early stage and has yet to ramp up in any significant fashion.
A snapshot of current volumes
Last time we looked at the data (at the end of November 2016), transaction volumes in Phoenix were going strong, Dallas was on a promising upswing, and Las Vegas was still small.
Since then, overall transaction volumes have surged from around 200 home sales per month to over 300 sales per month in February. In other words, in February, Opendoor was selling 10 houses each day (including weekends) across all three markets. Not bad!