Tuesday, April 30, 2013
Private Equty Keeps Buying Homes
The housing rebound continues. This morning Case-Shiller (via Calculated Risk) released its most recent three month average (December, January and February) that showed a 9.3% gain over the year earlier period. Private equity keeps investing in single family homes. Part of the reason is that despite recent gains, housing prices (Case-Shiller Composite 20 Index) are still 27.5% below their peak prices. Here is a Bloomberg article from a week ago on funds raising billions of dollars to buy single family rental homes. These purchases will help keep inventory low and put upward pressure on prices.