The news comes one day after Blackstone Group (NYSE: BX) announced it plans to sell 1,300 houses in Atlanta. While a large sell-off often signals a coming drop in home values as the market is flooded with supply, Kinloch Partners co-founder Bruce McNeilage predicts there is still pent-up demand from first- and second-time buyers.
“Blackstone’s announcement yesterday is good news for individual home buyers,” McNeilage said. “Inventory has been tight for some time and the increased availability of homes will provide some excellent shopping opportunities for Atlanta residents.”
McNeilage also predicted other large institutional investors will jettison their residential real estate portfolios in the coming weeks. But, Kinloch said the time to buy is when other investors are selling in a panic.
“There is often a herd mentality among institutional real estate investors, so we anticipate other large institutional investors will dump their Atlanta portfolios and possibly their portfolios in other Southeastern markets,” McNeilage said.
Kinloch Partners first entered the Atlanta market in August 2011 and has invested nearly $10 million here to date. In 2014, Kinloch Partners announced plans to acquire lots in 14 additional subdivisions in metro Atlanta, on which single family homes will be built this year.