Institutional investors are gobbling up investment properties inventory

gobbling inventoryPrivate institutions and investors have raised nearly $6 billion to $8 billion dollars to purchase 60,000 to 80,000 distressed single family properties to benefit from rental income, according to a report released on October 3, by the Wall Street Journal. Blackstone group LP invested $1 billion since the beginning of the year to acquire more than 6,500 properties. HomeUnion assures private individual investors that they need not feel discouraged that the process sounds too difficult and distant with huge players armed with professional research in the market. HomeUnion assists private investors in acquiring and managing properties through certified and reliable property providers in good and reliable cash flow zones.

The latest Fannie Mae Housing survey reported increased consumer optimism about the housing market and their own personal finances. Consumers expect home prices to increase and mortgage rates to hold steady more than ever before in recent times.

The Federal Beige Book also reported improved real estate conditions in most of the districts with modest price increases, declining inventories and increasing existing home sales.

How about concerns regarding foreclosures? There are reports of decreased foreclosures or shadow inventory from multiple sources. Realtytrac reported the lowest foreclosure activity in 5 years, a further signal of a turnaround in the housing market.

This report is further backed by CoreLogic report of a decline in shadow inventory to 2.3 million units in July 2012, which is a 10% drop on the year-over-year basis. Freddie Mac reported REO inventory down 30% from 2010 peak levels.

The icing on the cake for all the positive reports comes from a survey report released by University of Financial Associates, Ann Arbor. The institution has a prior record of successful predictions of the housing market woes. The online report by forecasts 8.5% to 22% cumulative rise in nominal house prices for the UFA 100, a broad based composite index of 100 US cities.

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