Monday, April 22, 2013

Recovery in Housing? Not So Fast...

Interesting bit of info here.

...Tom Lawler has sent me some rough data that suggests much of the increase in conventional sales in California has been due to investor buying (mostly large institutional investors buying single family homes to rent).   As an example, reports are Blackstone has purchased 20,000 homes nationally and Colony Capital has purchased 7,000 homes. And there a number of other large players. There groups have continued to buy even as the number of foreclosures has declined.

Even MORE interesting:

Note: some of the smaller investor groups I've mentioned on this blog have stopped buying (they started buying at the low end in late 2008).  They say the numbers no longer make sense.

That will leave a mark, particularly with first-time homebuyers.

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