The Houses Wall Street Has Started Selling

The Houses Wall Street Has Started Selling

Investors on Wall Street have started selling their homes.
With a big discount.

It's an example.

Even though we lowered it by 12%, it is still on sale.

The above platform is called American Homes4Rent, and it is the second largest platform.

It has over 50,000 homes in states like Texas and Arizona

To be clear, we don't know exactly how much investors are selling right now.

But more and more houses are for sale.

The reason why investors are increasingly putting it up for sale can be thought of from two perspectives.

One is that higher interest rates have made homeownership unattractive.

On the other hand, falling rents are happening across the United States.

CFO of Invitation Homes, the largest platform, said it all on a recent earnings call.

With the financial sense of companies activated, they decided that it was better to put cash in the bank than in low-yield housing.

The goal is to "get as much cash as possible," it noted.

They are selling houses outside several cities.

These are the areas where construction companies were building houses rapidly in the 21st and 22nd.
Additional inventory is also pouring out.

And it's going down to rent.

So how much will it fall?

It's hard to be precise.
But everything you think will be the same.

In total, more than 23.63 million homes are "owned by investors," 3.56% of which are vacant.

If only 5% of these are for sale, the amount currently for sale will double.

Especially the outer areas will get worse.
This is because there are many houses owned by investors.

And you have to know, in areas with a lot of investors
It fell the most from the last house drop.

For example, west of Phoenix, where investors are concentrated, house prices fell 70% over the period 07-12.

At the bottom of the 12-year market, Blackstone started buying houses at low prices.

Eventually, I bought those houses and sold them for other purposes.

Now they want "cash."

Of course, that's not to say that a 70% crash is coming again.
But I don't think it's difficult for the areas where investors are concentrated to see a 30% 40% drop.