I think so. I have asked this question over a year ago….What Happens When Blackstone Starts Dumping Real Estate At Market?
It appears we are about to find out as Blackstone is starting to liquidate their Real Estate portfolio. Blackstone Selling 1,300 Atlanta Houses in Strategy Shift
“It’s that stage in our lives where we’re now in a position of looking at dispositions as an active part of portfolio balance,” Bartling said in an interview. “You should expect us to sell 5 percent of our portfolio every year.”
Is Blackstone beginning to see the same thing that I have predicted here over 2 years ago? Particularly, the fact that this real estate bubble 2.0 (dead cat bounce) is coming to a conclusion?
I believe so. Blackstone went from acquiring properties like crazy between 2010-2013, to cutting their acquisitions last year by 70-90% to now selling large chunks of their portfolio. I don’t think they would be doing that in a red hot market that offers value. I think its safe to say that the bounce is over and that the real estate market is rolling over into a 3rd leg down. I believe Blackstone is beginning to realize that as well.
What happens next?
Easy. The real estate market might hover here for some time. Not too long thought. As soon as a bear market hits and the US falls back into a severe recession, you will see housing going down once again. Once investors realize where we are in the real estate cyclical composition (dead cat bounce and not expansion) you will see the likes of Blackstone and foreign investors trying to get rid of their properties at a much faster pace. With investors heading for the doors, mass volume of real estate should hit the market. Collapsing existing values just as fast, if not faster, than their initial ascend between 2010-2014.
Good luck selling your 48,000 rental properties Blackstone.
Did Blackstone Just Ring The Bell At The Real Estate Bounce Top? Google