Home News The housing correction intensifies—Blackstone to stop buying homes in these 38 regional housing markets

The housing correction intensifies—Blackstone to stop buying homes in these 38 regional housing markets

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pandemic housing boom Investors have flooded the US housing market. The owner of the family business rushed in. Airbnbs A host has been added to your portfolio. The amateur home flipper is back with vengeance. record rising house prices I also brought a big dog: wall street.

But that the party is over nowOr at least pause.

Look no further than Blackstone owned Home Partners of America. The company, one of the largest private landlords in the country, announced Thursday that: Stop buying single-family homes in 38 U.S. local housing markets Until the end of September.

“We evaluated several factors, including rising home prices, state and local regulations, and market demand to guide our investment plans to best serve our consumers. We look forward to reopening home buying in the market,” Home Partners of America wrote in a press release.

Pullback by Home Partners of America. Acquired by Blackstone for $6 billion in 2021, because the average Joe and investors alike put their home-buying plans on hold. The result is not pretty. On a year-on-year basis, Sale of existing homes When new home sale They decreased by 20.2% and 29.6% respectively.

The announcement by Blackstone-owned Home Partners of America comes at a time when more Wall Street companies are realizing that the intensification of the housing adjustment could lead to lower home prices. last week, Fitch Ratings Releases Report We found that US house prices are at risk of falling by up to 15%. this week, Moody’s Analytics cuts its outlook for US house prices— We predict that a price cut of 5% to 10% could become apparent.

A question arises here. Are deep-pocketed Wall Street companies simply putting their buying plans on hold, thinking that better discounts (i.e., lower prices) await? Companies like Blackstone, after all. makes clear that in the long term they want to own more single-family homes, not fewer.

If there is a recession, Moody’s analytics think A Vastly “Overvalued” Market Boise, Reno, Spokane, etc. could see home prices fall between 15% and 20%. These endangered markets are also among the places Home Partners of America plans to stop buying. Other “suspended” markets, such as Deltona and Columbus, are also at risk. Some people don’t. actually, Moody’s Analytics believes house prices will rise in Cincinnati.

Back in 2019, Blackstone exits single-family home business after selling remaining stake in Invitation HomesThen, in 2021, it acquired Home Partners of America to great acclaim. At the time, Home Partners of America said he owned 17,000 single-family homes.

Home Partners of America plans to exit 38 markets, but it won’t stop buying altogether. In total, we operate in 76 rural housing markets. This “pause” will only affect half of these regional markets. However, when looking at their purchasing activity, these “paused” market shares are even smaller. At least according to Blackstone.

“We and Home Partners remain committed to expanding access to home ownership, actively buying homes on behalf of residents in more than 20 of the fastest growing markets in the United States. activities,” said a Blackstone spokesperson. luck.

Want to stay up to date on US housing adjustments? Follow me twitter and @News Lambert.

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