Corporate buying spree... a challenge in the housing market

Would-be homeowners are facing even more challenges than  low inventories and rising prices. Corporate investors are gobbling up homes in the $150-$300,000 range to convert into rentals. The corporate buyers represent large hedge funds and institutional buyers who are paying good prices, in cash, and closing in as little as 20 days. Many times, the home is purchased by an investor before it even gets listed for sale. This market pressure, along with low inventories, is causing home prices to accelerate quickly. Some speculate this activity by these cash laden investment companies could cause a new real estate "bubble". The growing rental market is creating this appetite for homes. Blackstone Group, a private equity firm, is reported to own 29,000 homes nationally. MLS data for Tampa suggests they own 928 homes in the Tampa area, worth $131 million.