What does Warren Buffett think of the Housing Market?
In an article written by Andrew Frye, Bloomberg News, Warren Buffett predicts that the housing market will bounce back in 2011.
Buffett says, "Within a year or so, residential housing problems should largely be behind us, Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn't afford to buy an appropriate home a few years ago now find it well within their means."
Warren Buffett is a well respected businessman, growing his business into a multi-billion dollar enterprise. However, just because Buffett sees the housing market bouncing back in 2011, doesn't mean that that's going to happen. There are many opinions out there as to the housing market and the recession. I think there are a couple key points that need to be addressed in our National system before we start seeing a steady rise in home values. It's true that homes are more affordable now with home prices pretty stagnant or dropping and interest rates at an all time low (NOW is a great time to buy). But we all know that the housing market is only as strong as the economy.
If we can get to the core and fix the nation's housing problem, it would start with job creation and keeping jobs in the USA.
What do you think?
Vanna Siackhasone, Anchorage Real Estate Specialist, 907-720-4663
I must agree. Even thought Buffet is well known for his business sense and stock practices, this doesn't make him an expert on real estate. Yet, he has been around for decades and seen many cycles.... so who knows. At least his input can help keep the American people feel better about the economy.
My crystal ball is having technological problems. However, Warren Buffet does have large ownership interests in several brokerages in the midwest and perhaps nationally. He makes a good point that buyers will have an advantage in the lower prices and be able to afford houses that they could not have several years. None of us likes to buy high and sell low, but the market cycles will always operate. In my opinion, consumer confidence will be the tipping point as to what happens in the economy and the real estate market. Thanks for sharing.
I think we should see some normalcy to the market in 2011, but I also think we need to focus on jobs and more specifically to the real estate market, we need to get new home construction back on track, that is what really drives both the market and the economy. My two cents
Once we've achieved a "bottoming-out", some degree of normalcy should return to the market. I guess many parts of the country are already seeing some stability return at this point in time. Hope the rest of the country is not far behind.
Our Economy and Job Creation are too complex for our government to handle. Warren Buffet has done very well, but even he has suffered big losses from where he was a few years ago. Yes job creation (not government employment) is the key- we hope for 'normalcy'- what is that? -Steve
It is interesting because in Atlanta Warren Buffett (Berkshire Hathaway) owned two real estate companies...Jenny Pruitt and Harry Norman Realtors...he consolidated Jenny Pruitt into Harry Norman Realtors or for those that look at it in a different light he shuttered one real estate company (Jenny Pruitt) and it's culture. So his actions show that he says one thing, and does another.
Here is warren buffet in his own words: "Price is what you pay, value is what you get"
I agree with Mr. Buffet about the nation housing market recovery, but I think the market will recover in the year of 2012.
Thank you very much for sharing.