What Warren Buffett has to say about Housing:

Real Estate Agent with RE/MAX Executives Nampa, ID

 What Warren Buffett has to say about Housing:

Interesting Comments in Warren Buffett's stockholders report on housing.

"A housing recovery will probably begin within a year or so. In any event, it is certain to occur at some point," Buffett wrote.

While not mentioned in the letter, he's previously explained his rationale for an impending housing rebound: More than a million households are formed every year, yet current housing starts average less than half that amount. Demand is catching up with supply. Simple.

Another housing story: "Home ownership makes sense for most Americans, particularly at today's lower prices and bargain interest rates," Buffett wrote. "All things considered, the third best investment I ever made was the purchase of my home, though I would have made far more money had I instead rented and used the purchase money to buy stocks. (The two best investments were wedding rings.) For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come."

I like the wedding ring investment thought!  Let’s hope he’s right about a recovery soon!


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Comments (14)

Mark Nehs
Mortgage Loan Officer Waukesha Wisconsin - Pewaukee, WI

Thanks for sharing.  It is usually correct to be on the same side as Warren Buffett.

Feb 28, 2011 01:57 PM
Deborah Bly
eXp Realty, LLC - League City, TX

Don, On average if you look at the last 11 years, nationally real estate prices are up 40%. Most any stock growth in the last 11 years doesn't come close to that. I think with stocks you have to pick very wisely.

Feb 28, 2011 02:39 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Mark, that's what I'm thinking...

Deborah, I guess it all depends on the stocks. I think Buffett has done pretty good, but that's what he knows. We know real estate, so I think I would stick with houses!

Feb 28, 2011 02:45 PM
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

I don't like to gamble with money.... I'm just wimpy that way... If I had the "knack" like Buffett, I probably would feel differently.

Feb 28, 2011 03:15 PM
Steve Scheer
Realty Oasis - Metro Brokers - Highlands Ranch, CO
Highlands Ranch Real Estate - Denver Real Estate

Its certain to happen at some point.  So specific.  :)  Let's hope it is nice and soon.

Feb 28, 2011 03:41 PM
Vickie Slade
Colorado Landmark, Realtors - Boulder, CO
Service You Can Trust ~ Someone You Can Depend On

Don, great post.  Too bad Buffet can be more precise, but then he would have to have a crystal ball.  love the wedding ring investment. 

Feb 28, 2011 03:48 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Don - I have high confidence on Warren Buffet and Bill Gates. It is very rare Warren Buffet made wrong prediction, hopefully he is right on housing recovery. Thanks for the information.

Feb 28, 2011 03:54 PM
Glenn Roberts
Retired - Seattle, WA

Warren is not going too far out on a limb here. The bubble bloggers were right to say someday it was going to crash. I'm with Warren. Someday it's going to recover. And someday I'm going to retire.

Feb 28, 2011 04:19 PM
Doug Bullwinkel
Envoy Mortgage,NMLS ID 6666 - Sacramento, CA
Mortgage Loan Originator NMLS #281609

When the jobs come back, the housing market will  rebound in the areas where there are good jobs.  Location, location, location.  Thanks for sharing some optomistic info.

Feb 28, 2011 06:29 PM
Roy Kelley
Retired - Gaithersburg, MD

Good post. Most families do not have the skills to make stocks a better investment than a home.

Roy and Dolores Kelley visited Brookside Gardens on Sunday, May 9, 2010 to see the Wings of Fancy exhibit of live butterflies and to visit the gardens. Photograph by Roy Kelley.

Mar 01, 2011 01:55 PM
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

I LOVE that quote about the wedding ring investment, as well as everything else he says!  Thanks for sharing, and letting me reblog!

Mar 01, 2011 02:05 PM
Cara Marcelle Mancuso
Golden Girls with SW Desert Homes - Tucson, AZ
Call a Marana neighbor, I'm THERE!

"Taken out of context, his words are anything but profound", she said, dryly. In any event, it [a housing recovery] is certain to occur at some point," Buffett wrote.

Hmmm.  :)

Mar 02, 2011 02:09 AM
Kathleen Lordbock
Keller Williams Realty Professionals - Baxter, MN
Keller Williams Realty Professionals

I love his wedding ring comment as well!!!!!

Mar 03, 2011 02:33 AM
Gloria Todor
Berkshire Hathaway Home Services - Media, PA
& Doug Durren (484) 431-3686 in SE PA

Don, Yes let's hope his predicitons are right.  Enjoy the fact that Buffet placed his investment in a committed relationship up there with other investments. 

Thanks for sharing this.


Mar 03, 2011 05:38 AM