Hedge Funds and Private Equity Bullish on Housing
The fact that more and more big money investors are betting on real estate is certainly a good and welcomed sign after several years of pessimism in housing. I can confirm this increased interest firsthand, myself having helped raise over $100 million for a residential REIT that I was Chief Investment Officer for in 2011 and 2012.
I’ve even seen a few attention-seeking prognosticators predicting another real estate bubble in the making. Before we get way ahead of ourselves, lets do a quick reality check. The fact is that we’ve still got plenty of real and shadow inventory out there to go through before we can realistically start talking about another real estate bull market. On top of that, residential lending is still very tight. Lenders will need to loosen up their still very strict standards before we’ll have to worry about another real estate bubble in the US.
Regardless, after years of darkness, it’s nice to see very clear glimmers of light in real estate.