Analysts have highlighted a number of high profile multi-million dollar investments as a signal that the property crisis that has had a hold of the US real estate market for a number of years is finally coming to an end.
The analysts, who work for one of the leading property investment companies in the country, pointed out that the property markets are seen to be in full recovery when the decision is made by high profile investors to return to the market, and this is what they are seeing happen.
First up was the investment of $3.85 billion by Warren Buffet’s firm, which went towards securing the future of Residential Capital LLC, a housing and finance business that was bankrupt. This was followed by an investment by Blackstone Group LP, which has invested $250 million into buying houses that had been foreclosed across the US with the aim of renting the houses out to people who are unable to finance the purchase of their own homes.
The analysts predict that this is merely the tip of the iceberg as the market strengthens over the coming months.
Speaking about the news, the managing director of a leading property investment firm, Loxley McKenzie, said: “Sentiment will then gain momentum as banks feel confident enough to lend to buy property, foreign investment in US property increases -as we are already seeing – and this eventually filters down to the average person on the street, who feels confident enough to invest in a home again.”