In another sign that competition in US real estate markets is cooling, Blackstone Inc. announced that its Home Partners of America Division, the single-family landlord, was ceasing the purchase of homes in nearly half of the 80 markets where it currently operates.
In a recent press release, Home Partners said that as of September 1st, it will stop purchasing in 28 metropolitan areas, including Fresno, California, and Memphis, Tennessee. On October 1st, the company will stop purchases in an additional 10 markets.
According to the company, “We assessed several factors such as home price appreciation, state and local regulations, and market demand. We hope to resume purchasing homes in these markets in the future.”
According to data provided by the National Associations of Realtors®, all-cash sales—which often are a sign of an investor making the purchase rather than a family who plans to live in the home—dropped to 24% of home purchases in July, the lowest level of the year. In March, the share was 28%, a nearly eight-year high.
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