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Wall Street Is Investing in North Carolina, are you?

I just read an interesting article in Realtor Magazine by Jon Boughtin.  You can read it here.

While the theme of the article is about the federal government helping Wall Street companies access funds to purchase homes and transition them into rental properties, here's are some key quotes and points that should be of interest to investors in the North Carolina market.

  • "Deals like these are going to lead to more investor purchases, and further draw down inventory.  And generally where's there is an inventory shortage, there is a rental shortage as well." - Lawrence Yun NAR's Chief Economist.

  • According to public filings, Invitation Homes is looking at purchasing in California, Florida, North Carolina, and other areas with limited supply.

  • Fannie Mae outlined a strategy of investing in markets they believe "will...exhibit constrained levels of new-home construction.  As a result, we believe our markets have and will continue to outperform the broader U.S. housing and rental market in rent growth and home price appreciation.

I've personally seen many individual investors sell over the last three years, missing out on gains from 20-50% over that time frame.  Rents have improved by 10-20% during that time frame in most of our markets, turning investments that were previously a push into cash cows.  As I drive around daily conducting business, my eyes are telling that that the number of housing starts don't match the current growth in the greater Charlotte market.  The sharps and sharks are buying and holding in this market, I'm taking notice.

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