Hedgefunds Exit Southern California. Any impact to market?

[Timothy A.]

Hi all!

I have a quick question. As many socal folks know, hedgefunds such as Blackstone have stopped being so active because the numbers no longer work. My buddy who was working there just quit because his transactions went from 5-6 purchases a day to maybe 1 per week. With this change, I would imagine that inventory should start to increase again, and folks will no longer be competing with hedgefunds for listings. Would this indicate a slower pace of appreciation than we've seen in the past year or so? Can we still expect to see property prices rising so quickly? Or do we expect to see prices start to drop now that the big guy just left? Any thoughts?