Warren Buffett Predicts Housing Market Recovery

By
Real Estate Agent with Berkshire Hathaway HomeServices

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.

LINDA SECRIST - LINDA SECRIST & ASSOCIATES - WHATEVER THEY TOUCH TURNS TO SOLD!

www.lindasecrist.com

www.newutahrealestate.com

www.saltlakehomedirectory.com

 

Comments (8)

CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Always good to know what Buffet thinks as his word is GOLD!~ Thx~ ;)

Mar 14, 2011 08:31 PM
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Warren Buffett is a very wise money man.  When Warren Buffet speaks, E.F. Hutton listens!  Definitely good news.

Mar 14, 2011 08:36 PM
Camilo Romero
Exit Team Realty - Tustin, CA

I think that the housing market recovery will be seen this summer.  As weather improves through out the country and summer season kicks in, more buyers will take advantage of the combination of low prices and low interest rates.

Mar 14, 2011 09:01 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Warren makes a very good point in his statement.  Thanks for posting it Linda.

Mar 14, 2011 10:16 PM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

I am not sure if anyone else has experienced his comment lately:

"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.

Instead, I have witnessed banks being overly restrictive.

Mar 14, 2011 10:36 PM
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

Love it when we have Warren on our side!

Mar 14, 2011 10:49 PM
Larry O'Sullivan
Sandy, UT

Linda - thanks for your positive post. When all around you are in the doldrums, you look for hope and progress to be the results of your efforts.Thanks for my morning inspiration. Way to go.

Mar 15, 2011 12:07 AM
Linda Secrist
Berkshire Hathaway HomeServices - Holladay, UT

Thanks for all the great comments.  I agree... having Warren on our side is always a good thing.  Larry, thank you for the kind words. 

Mar 15, 2011 04:49 PM