What Is Driving The Market

What Is Driving The Market

Warren Buffett followed up his famous statement of Feb 2012, "I'd buy up a couple hundred thousand single family homes if I could" by buying up real estate brokerages around the country. He has even partnered with Brookfield Asset Management to
double the size of his brokerage business creating Berkshire's Home Services of America. He seems financially committed to a US housing recovery!

Several large investment firms have literally followed his comments and "Barclay's calculates that $5.4 Billion of institutional capital has been spent on Buy-to-Let single family housing in the USA and estimates another $8 Billion could be spent in
the next couple of years” (Financial Times, London, Friday, Feb. 15, 2013)

This is massive institutional investment in what is effectively a new asset
class for them. "Blackstone alone has invested $3 Billion into 17,000 homes in the 'sunbelt states' of California, Nevada, Arizona and Florida over the past 12 months" said Jonathan Gray, the company's global head of real estate. The company has dedicated nearly one thousand workers and sub- contractors to this task across the country.

This stimulated a massive increase in demand in the market segment targeted by these funds. In Vegas, the target market is well located SFR's (Single Family Residences) with a minimum 3 bedrooms, 2 baths, 2 car garage, up to $250,000. 

Desired ROI's were 8% but seem to have fallen to as low as 5%. This market segment has risen 30% - 45% in the past 12 months:
Typical 1400 SF, 3 bedroom, 2 bath, 2 car garage, increased from $100,000 to $145,000 between March 2012 - March 2013. Typical 2300 SF, 4 bedroom, 3 bath, 3 car garage and pool increased from $175,000 to $225,000 between March 2012 - March 2013.

AMAZINGLY, these prices are STILL BELOW
REPLACEMENT VALUE! 


Steve Bland Headshot
Author:
Phone: 702-751-7071
Dated: July 24th 2013
Views: 5,432
About Steve: ...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Feb 4 2019 3792 1 - 😍🔑Have you given up owning
Another SOLD - Keller Williams VIP - Steve Bland
Sold - Gorgeous Oasis🏠Sold!Congrats
Open House Sucess - I’ve learned many things about

Our Bloggers

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

The Steve Bland Group
7501 Tule Springs Rd Ste #170
Las Vegas, NV
702-751-8816
702-906-0025