from Housingwire via Patrick.net"Nearly 4 million single-family homes entered the rental market over the course of the past 8 years.
This strong inventory of rental homes has finally caught up with the increased demand for rentals during the housing crisis, causing single-family home rents to flatten nationwide, according to data from Trulia.
Nationally, rents for single-family homes were flat, rising only 0.1% year-over-year. In Las Vegas, Orange County, Los Angeles, Atlanta and Phoenix — where investors have actively bought and rented out single-family homes — rents are either flat or continuing to fall.
"Rising prices and flattening rents change the math for investors and renters," said Jed Kolko, chief economist for Trulia ($30.31 0%).
"
Carrington Stops Buying Rentals, BEWARE A BUST?
" ... Early last year I checked back with these
small investors, and they had all stopped buying. The numbers no longer made sense with all the large institutional buyers. Now it appears the numbers no longer make sense for at least one large buyer.
" ...
30-year mortgage rate highest in a year ..."
Mortgage
rates hit a 1 year high today, costs are rising,
prices have skyrocketed ... this housing bubble will stop ... Seasonality applies ...
lumber prices have collapsed meaning
demand has collapsed:
BEWARE A BUSTmy jeffolie view: the housing bubble now is
peaking ...
a bust will follow into the 2016 new Great Depression, BOTTOMING AREA.
====================================
May 29, 2013
Housing Report: Institutional Investor Stops Buying, blames "stupid money"
by Bill McBride on 5/29/2013
From John Gittelsohn at Bloomberg: Carrington Stops Buying U.S. Rentals as Blackstone Adding (ht Soylent Green Is People)
“We just don’t see the returns there that are adequate to incentivize us to continue to invest,” [Bruce] Rose, 55, chief executive officer of Carrington Holding Co. LLC, said in an interview at his Aliso Viejo, California office. “There’s a lot of -- bluntly -- stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.”
Carrington, which started in 2003 as a mortgage investment fund and has managed
almost 25,000 rental homes for itself and others, has been joined by hundreds of institutional and international investors buying single-family homes after prices plunged following the housing crash.
Blackstone Group LP (BX), the largest investor in single-family rentals, has spent $4.5 billion to amass more than
26,000 homes and continues to buy, according to Eric Elder, a spokesman for Invitation Homes, the rental housing division of the world’s largest private equity firm. ... Blackstone’s net yields on its occupied houses are about 6 percent to 6.5 percent ...
Back in late 2008 and early 2009, I started reporting on small investor groups buying low end single family properties to rent. Since then rents have increased sharply and vacancy rates fallen.
Early last year I checked back with these
small investors, and they had all stopped buying. The numbers no longer made sense with all the large institutional buyers. Now it appears the numbers no longer make sense for at least one large buyer.
www.calculatedriskblog.com/2013/05/housing-report-institutional-investor.html=============================
May 30, 2013
30-year mortgage rate highest in a year WASHINGTON (MarketWatch) — Mortgages are costing consumers more, with the 30-year benchmark rate at its highest level in more than a year, according to data released Thursday.
The average rate on the 30-year fixed-rate mortgage rose to 3.81% in the week ending May 30 — the highest since the week ending May 10, 2012 — up from 3.59% in the prior week, Freddie Mac said Thursday.
This month alone the rate has
climbed almost half a percentage point.
“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” said Frank Nothaft, Freddie’s chief economist.
Despite recent gains, the 30-year rate remains relatively low, helping to keep housing affordability high. Interest rates falling and hovering close to record lows have been supporting the housing market’s rebound over the past year.
A gauge of pending home sales, also released Thursday, showed that levels rose more than 10% in April from the same period in the prior year, signaling ongoing future gains.
A separate recently released report indicated that actual existing-home sales increased in April to the highest rate since November 2009.
However, analysts say that low inventories, along with high unemployment and credit standards are constraining sales.
With low inventories, escalating prices are keeping some buyers, such as would-be first-time homeowners, from participating in the market. In April,
first-time buyers accounted for 29% of existing-home sales, compared with 30% in March and 35% in April 2012.
www.marketwatch.com/story/30-year-mortgage-rate-highest-in-a-year-2013-05-30-11103222