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Blackstone buys hundreds of homes to rent out


By Ironman   Follow   Mon, 26 Nov 2012, 2:01am PST   413 views   2 comments   Watch (0)   Share   Quote   Permalink   Like   Dislike (2)  

New York-based major investment firm Blackstone ($14.95 0%) increased its purchases of single-family homes in Sacramento, Calif. to more than 500 properties, up to 40 homes per week, over the past few months, according to Hudson Sangree and Phillip Reese of the Sacramento Bee.

The bulk purchases are a result of mass volumes of vacant properties due to foreclosures that are offered at ‘fire-sale prices.’ Blackstone’s purchases of the single-family homes are expected to boost home prices by clearing out distressed properties to create rental housing.

However, there is a risk that the bulk purchases could pose a challenge to first-time buyers as well as shift neighborhoods once occupied by homeowners rather than renters.

In November Blackstone began speeding up its home-purchase pace, buying 145 properties, almost 50 homes a week — an indication that the firm believes the market is improving.

http://www.housingwire.com/content/blackstone-speeds-pace-hundreds-homes-rent-out

Comments 1-2 of 2     Last »

mike2   befriend   ignore   Mon, 26 Nov 2012, 5:11pm PST   Share   Quote   Like (1)   Dislike     Comment 1

another indicator that the RE market is on its way up. It isn't every where but in most metro areas. Less inventory always means higher prices. The bears gambled and the bulls are winning.

i didn't say it is fair or right but it is haapening throughout the country.

dunnross   befriend   ignore   Mon, 26 Nov 2012, 5:47pm PST   Share   Quote   Like (1)   Dislike     Comment 2

mike2 says

another indicator that the RE market is on its way up.

It's up until the death spiral kicks in, again. We are looking at a glut of rental properties 6-12 months down the road, finally crashing the rent bubble. Lower rents mean lower house prices attracting more investors which come in at even lower price points, lowering rent once again.

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