NEW YORK ( TheStreet) -- Private equity firms are taking advantage of the comeback in the real estate market to take portfolio companies in sectors such as homebuilding and construction supplies public.
According to data from the U.S. Census Bureau, sales of new single-family homes in April were at 454,000, up 2.3% from the previous month and up 29% from April 2012.
Also, as of June, McGraw-Hill Construction forecasts that U.S. single-family housing starts will increase to 1.1 million by 2015.
Besides the upward trend in home sales, another factor encouraging housing sector companies to go public is the stability in the initial public offering market. "People see that the market has been on an upswing and they want to take advantage of that," a source who advises on IPOs said.So far this year, 102 IPOs have been filed in the U.S., up 39.7% from the same period in 2012, according to data from Renaissance Capital. Also, 79 IPOs have priced, up 14.5% from the same period in 2012. The cyclicality of the real estate market also forces sellers to act quickly. "Everybody is aware that the residential and nonresidential construction markets are cyclical. They are in an upswing now and the
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