Post by ferris1248 on Aug 3, 2024 10:08:10 GMT -5
Is supply overtaking demand?
"In a worrying development for the U.S. housing market, real estate giant Blackstone is beginning to liquidate its housing portfolio in Florida, and it’s selling properties at a loss. This trend, reported by Nicholas Gerli of Reventure Consulting, indicates potential trouble ahead for home prices, particularly in markets like St. Petersburg, Florida."
"According to Nicholas Gerli, Blackstone has listed several homes for sale in St. Petersburg at prices lower than their purchase costs. One striking example is a house they bought for $380,000 two years ago, now listed for $370,000—a $10,000 loss. This property has been on the market for 170 days, signaling potential distress in the market."
"Gerli emphasizes that Blackstone’s decision to sell at a loss suggests a broader market downturn. “If Blackstone is now selling, particularly here in Florida, that says that home prices might be on the way down,” he notes. This move marks a significant shift from the pandemic era when institutional investors like Blackstone were aggressively buying properties, driving up prices and reducing inventory."
"During the pandemic, Wall Street investors raised billions of dollars to buy homes across America, significantly impacting the housing market. However, this trend has reversed. “Now that investors have stopped buying and started selling, it represents a huge shift in the market,” Gerli explains. This shift could signal the long-awaited correction in the overheated housing market."
"Investor ownership is substantial in the U.S. housing market, with 24 million investor-owned homes out of 100 million total homes. Gerli points out that these investors, including both large corporations like Blackstone and smaller mom-and-pop investors, have played a crucial role in driving up home prices. However, the current sell-off by major investors could trigger a similar response from smaller investors."
"The trend is not limited to Florida. Other markets, such as Orlando, Nashville, Dallas, and Phoenix, are also showing signs of overvaluation and increased inventory. Gerli highlights that prices in these markets are at risk of significant declines as investors continue to sell. Conversely, markets like Las Vegas, with lower inventory levels, might experience different dynamics."
greenbuildingelements.com/concerning-development-blackstone-selling-florida-homes-at-a-loss/
"In a worrying development for the U.S. housing market, real estate giant Blackstone is beginning to liquidate its housing portfolio in Florida, and it’s selling properties at a loss. This trend, reported by Nicholas Gerli of Reventure Consulting, indicates potential trouble ahead for home prices, particularly in markets like St. Petersburg, Florida."
"According to Nicholas Gerli, Blackstone has listed several homes for sale in St. Petersburg at prices lower than their purchase costs. One striking example is a house they bought for $380,000 two years ago, now listed for $370,000—a $10,000 loss. This property has been on the market for 170 days, signaling potential distress in the market."
"Gerli emphasizes that Blackstone’s decision to sell at a loss suggests a broader market downturn. “If Blackstone is now selling, particularly here in Florida, that says that home prices might be on the way down,” he notes. This move marks a significant shift from the pandemic era when institutional investors like Blackstone were aggressively buying properties, driving up prices and reducing inventory."
"During the pandemic, Wall Street investors raised billions of dollars to buy homes across America, significantly impacting the housing market. However, this trend has reversed. “Now that investors have stopped buying and started selling, it represents a huge shift in the market,” Gerli explains. This shift could signal the long-awaited correction in the overheated housing market."
"Investor ownership is substantial in the U.S. housing market, with 24 million investor-owned homes out of 100 million total homes. Gerli points out that these investors, including both large corporations like Blackstone and smaller mom-and-pop investors, have played a crucial role in driving up home prices. However, the current sell-off by major investors could trigger a similar response from smaller investors."
"The trend is not limited to Florida. Other markets, such as Orlando, Nashville, Dallas, and Phoenix, are also showing signs of overvaluation and increased inventory. Gerli highlights that prices in these markets are at risk of significant declines as investors continue to sell. Conversely, markets like Las Vegas, with lower inventory levels, might experience different dynamics."
greenbuildingelements.com/concerning-development-blackstone-selling-florida-homes-at-a-loss/