Offerpad becomes more selective on home purchases amid market challenges

Offerpad logged 324 home transactions in the third quarter of 2026, marking a 32% decrease compared to the previous year, HousingWire reported. The company attributed this decline to higher mortgage rates and broader housing market headwinds that slowed sales activity.

Executives said Offerpad adjusted its acquisition criteria to require higher expected returns on properties and became more selective with purchases. This included building wider expected margins into each home purchase to better manage risk in the current market environment.

Instead of offering direct cash offers to home sellers, Offerpad increased its focus on serving sellers through its Cash Offer Marketplace and Brokerage Services. These two offerings accounted for about 35% of closed transactions in Q3, with brokerage listing signings more than doubling from the prior quarter.

Overall transaction volume remained lower than anticipated due to the slower housing market. The company noted that rapid increases in mortgage rates above 7% and concerns about housing affordability contributed to a more cautious market for both buyers and sellers.

Offerpad's CEO highlighted that the speed of mortgage rate increases and widespread media attention on housing affordability created uncertainty, leading buyers to weigh higher monthly payments against potential deals and sellers to face questions about sale timing and pricing.