“Accelerated Purchases”

“The U.S. housing market is rebounding faster than anyone thought possible, according to Blackstone’s global head of real estate Jonathan Gray, as the Federal Reserve buys mortgage bonds to keep rates near record lows and investors sop up a diminishing supply of properties for sale. Supply across the country is being constrained as institutional investors including Blackstone and Colony Capital LLC have pushed out traditional buyers competing for a dwindling number of properties. Blackstone, the largest U.S. private real estate owner, has accelerated purchases of single-family homes as prices jumped faster than it expected, spending more than $2.5 billion on 16,000 homes to manage as rentals, Gray said during an interview last week. That’s up from $1 billion of homes owned in October, when Blackstone Chairman Stephen Schwarzman said the company was spending $100 million a week on houses.” Full Story

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