Opendoor announced its launch in Los Angeles on Wednesday, a move that marked a new high in the company’s price ceiling for homes it will buy.
Previously, $600,000 was the highest price the iBuyer would pay for a home. According to the company, this price point only existed in two of its markets: Sacramento and Denver. Now, with its launch into Los Angeles, Opendoor will pay up to $800,000 for homes that were built after 1950.
The $200,000 price ceiling increase is not a surprise, given the current state of Southern California’s housing market. Earlier this year, urban planning consulting firm Demographia ranked the L.A. the No. 6 least affordable housing market in the world. So, with an upped price point for homes it will buy, Opendoor is moving into the market.
“The traditional home buying and selling experience is riddled with stress and uncertainty, particularly in a competitive real estate market like Los Angeles,” said Andy Swanton, Opendoor general manager, Los Angeles. “From a condo downtown to a bungalow in Huntington Beach to a starter home in West Covina, we’re thrilled to give Angelenos a simpler way to not only sell their home, but find, tour, and buy the home of their dreams.”
The launch not only includes Los Angeles but also Orange and portions of Ventura counties. Opendoor already has a foothold in Southern California, having worked with over 600 local buyers and sellers in Riverside County since September 2018, according to the company.
Prior to this, Opendoor’s most recent launch was in Salt Lake City. The online real estate marketplace started doing business there last month. The iBuyer launched in Phoenix in 2014, and has since expanded to more than 20 major markets across the U.S.