As the new-home buying trend continues, the real estate services industry is expected to benefit given the unabated low-interest-rate environment. So, established real estate services companies FirstService (NASDAQ:FSV) and Opendoor (NASDAQ:OPEN) should witness rising demand. But which of these two stocks is a better buy now? Read more to find out.FirstService Corporation (FSV) in Toronto, Canada, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. The company operates in two segments: FirstService Residential and FirstService Brands. In comparison, Opendoor Technologies Inc. (OPEN) in San Francisco operates a digital platform for residential real estate in the United States, enabling consumers to buy and sell homes online.
The continuing low-interest-rate environment, and the desire to move to bigger and better living and remote-working spaces, have increased the demand for real estate services over the past year. Furthermore, after the passage of a $1 trillion infrastructure package on August 10, the Senate has turned its attention now to a $3.5 trillion measure that could include more extensive investments in housing and changes to zoning policies. According to a SpendEdge report, the real estate agents and brokerage services market is expected to grow at a 4.8% CAGR from 2020 - 2024. Therefore, both FSV and OPEN should benefit.
OPEN has gained 5.5% in price over the past month, while FSV has returned 3.4%. However, FSV’s 51.9% gains over the past year are higher than OPEN’s 42.9% returns. Moreover, in terms of their past three months’ performance, FSV is the clear winner with 17.7% gains versus OPEN’s 1.9%.