Invitation Homes Inc., the country’s largest rental-home owner, on Wednesday disclosed a joint venture with Boston property investor Rockpoint Group LLC that will result in more than $1 billion for the landlord’s ongoing house hunt.Source: The Wall Street Journal
Those of you that follow me, know I frequently reference a really good real estate blog. Today’s topic mentions a large real estate investment fund that just raised capital to add another 3,500 homes to its portfolio of over 80,000 homes. You’ve seen from my recent articles that we are entering a seller’s market with a HUGE deficiency in inventory right now. What this means is that prices ARE GOING UP. I’m already seeing less new-construction offers and over-bidding on resales right now. In fact, just a few weeks ago, I placed an all-cash offer on a home were the bidding got as high as $65k over ask (on a $200k home) before I left the table!
You can clearly start to see the “trend towards renting in lieu of buying, as housing continues to get more expensive and out of reach of even affluent buyers”. As Jay also writes, “buyers should be very comforted by the fact that huge funds like this, with all of their resources, analyses, data and sophistication, believe so strongly in residential real estate.”
We are in an unprecedented territory with a combination of ultra-low interest rates, ultra-low inventory, a post-COVID buying frenzy, Congress likely to pass even more stimulus, millennials “graduating” to home ownership, and all of this before Apple and Tesla even get here! If there was ever a time when all signs point to “jump in and hold on”, this would be it.
You can read the full blog post here.