Early Investors In Phoenix Real Estate Market Cashing Out?

Posted by Doug Young on Wednesday, December 26th, 2012 at 10:51am

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For those who invested in portfolios of distressed single-family homes, it has come to the point where investors who got into the game early are beginning to cash out.

I was reading an article about how some large real estate investment firms are selling their portfolio of homes to large property management companies.  *"For example, MACK has sold a portfolio of 196 homes in the suburbs south of Chicago to American Residential Properties, a Scottsdale, Ariz., firm, that began accumulating homes three years ago and now owns about 2,000 in seven states."

Single-family rental homes in the Greater Phoenix market are finishing out 2012 as one of the hottest real-estate assets, as more investors look for ways to bet on a housing recovery. Home prices have climbed nearly 22% this year, amid rising demand and big declines in the number of homes for sale. Many other large and small real estate investors have contributed to this trend by scooping up homes and holding them off the market.  The question becomes if home prices continue to rise, will we see an increase in inventory as these early investors decide to take their Phoenix area real estate profits off the table?  Only time will tell, but more marketable Phoenix homes for sale should ultimately help the market continue it's recovery.

*Courtesy of Nick Timiraos - The Wall Street Journal

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