Warren Buffett, real estate investment mogul, delivered a fantastic forecast to the shareholders of his #11 ranked Fortune 500 company, Berkshire Hathaway. He advised people to "be wary about borrowing money because of the games public companies play with the profit numbers they report." However, Buffett reminded stockholders that "money will always flow toward opportunity and there is an abundance of that in America." He said that he believes the housing market recovery will likely begin within the next year and that will lead the economy into recovery.
He explained that this recovery is dependent upon common sense underwriting related to what mortgage borrowers can really afford to buy.
Buffett warned, “But a house can be a nightmare if the buyer's eyes are bigger than his wallet and if a lender, often protected by a government guarantee, facilitates his fantasy. Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.”
With such positive, and common sensical, forecasting, surely those "sitting on the fence" buyers need to act soon! Especially with interest rates inching upward, although still incredibly and historically low, combined with listed homes showing at least a 20% or greater decrease in prices and very motivated sellers... the time to buy is golden.
Just remember, you make your money when you purchase your home, not when you sell it.