Tarrant among top markets for home sales to equity firms

Institutional investors bought nearly 500,000 homes in the past three years nationwide and Tarrant County was among the leading areas.
Institutional investors bought nearly 500,000 homes in the past three years nationwide and Tarrant County was among the leading areas. AP

Tarrant County ranks No. 4 among the top 25 counties in the nation with the most single-family homes sold to institutional investors, according to a report bring released today by RealtyTrac.

Moreover, the report shows that the percentage of Tarrant County homes bought by institutional investors, backed by Wall Street and private equity firms, has nearly doubled in the past three years. The home are typically leased as rentals.

Tarrant County is behind Harris County, ranked No. 2, but ahead of Dallas County, at No. 7.

From 2012 to 2104, RealtyTrac, said 8,347 homes were sold in Tarrant County to investors. In Harris County, the number was 14,990; it was 7,220 in Dallas County.

In 2012, the sales represented 5.86 percent of all the homes sold in Tarrant County. That increased to 9.6 percent of the homes sold in 2013 and 11.47 percent in 2014, the report says.

But the prices paid by investors has gone down during. The average price paid by institutional investors in 2012 was $160,628. The average price dropped to $103,551 in 2013 and $106,027 in 2014, the report says.

RealtyTrac, a real estate information company and an online marketplace for foreclosed and defaulted properties in the U.S., said it analyzed nearly 9.6 million sales of single-family homes from January 2012 to October 2014. In all, 460,840 single-family homes were sold to Wall Street investors from 2012 to 2014, or 0.63 percent of all the single-family homes sold, the report shows.

Texas was among the the top seven states with the most sales to investors.

In Dallas County, 7,220 homes were sold to investors in the past three years. In 2012, 6.5 percent of the single-family homes sold were to investors. That increased to 7.69 percent in 2013 and 8.75 percent in 2014, the report says.

Like Tarrant County, average sales prices dropped. In 2012, investors paid an average $190,494 for a home in Dallas County. In 2013, that fell to $87,825, but it rose to $106,848 in 2014.

The top four investors are Blackstone/Invitation Homes, American Homes 4 Rent, Colony American Homes and Fundamental REO/Progress Residential, the report says.

The report also looks at sales in 2,490 ZIP codes nationwide with at least one single-family home purchase by the top four investors. Locally, the most sales were in 76063 in Mansfield, 76244 in Keller, 76051 in Grapevine, 76010 and 76017 in Arlington, and 76137, 76133, 76116, 76179 and 76119 in Fort Worth.

Investors bought the most single-family homes, 19,133, in the past three years in Maricopa County, Ariz., in the Phoenix area.

Other Texas counties on the top 25 list were Bexar County at No. 22 with 4,043 sales and Collin County at No. 24 with 3,539 sales to investors, RealtyTrac said.

Sandra Baker, 817-390-7727

Twitter: @SandraBakerFWST

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