Offerpad Solutions Inc. (NYSE:OPAD) Q2 2023 Earnings Call Transcript

Brian Bair: What’s interesting, obviously, we’re watching it very closely. I would have told you not a while ago, but 7% would have been — and we’ve seen — still because of lack of supply, we’re still seeing strong demand with anything that we’re putting on the market. I think the one thing that maybe doesn’t get mentioned enough is because we haven’t had the home price depreciation that everyone was expecting coming through this and the jobs are still holding strong, you still have people with a lot of equity in their current homes. So people that are selling their home might have $200,000 to $300,000 of equity into that home that they now can put down as a down payment that can offset some of the cost up. So instead of getting a mortgage at $500,000, they’re getting a mortgage at $250,000 or $200,000, which is offsetting some of the burden of the interest rates.

So we’re still seeing about 25% maybe cash buyers. We cut some of that equity that I mentioned. But also, you’re seeing a lot of first-time homebuyers as well, I think, that are — that have been moved out of the market or that are coming out of a rental that they’ve been running in the last year or 2 that they want to get in on and buying a house while they can. And so — but that’s a long-winded answer, but I hope that answered where — what your question was.

Operator: Thank you. That concludes the question-and-answer session, and that concludes today’s conference call. I would like to thank you all for your participation. You may now disconnect your lines.