The Oracle of Omaha’s U.S. Housing Market Predictions
March 1, 2010 by Victoria Stankard · Leave a Comment
Warren Buffett, known as the ‘Oracle of Omaha’ - billionaire, businessman, philanthropist and one of the most successful investors in the world – predicts that the U.S. residential real estate market down-slide will show signs of recovery by 2011.
Over the last ten years Buffett’s Berkshire Hathaway Inc. has steadily built up the nation’s second-largest real estate brokerage operation – Minneapolis-based HomeServices of America Inc., a subsidiary of Berkshire-controlled Mid-American Energy Holdings.
Buffett’s Annual Letter to Shareholders
Last week, in his annual letter to shareholders of his Berkshire Hathaway ‘Empire,’ Buffet predicted that “Within a year or so, residential housing problems should largely be behind us. Buffet went on to say that “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.”
Demand and Supply
It’s estimated that one out of every five residential mortgage holders owes more on their mortgage than the value of their home. Add that to the rise in foreclosures that flooded a real estate market already drowning in unsold homes, which caused new construction to drop to all time lows. “High-value houses and those in certain localities where overbuilding was particularly egregious will take longer to recover,” wrote buffet.
Buffet is confident that we will see the residential housing market steadily shift upwards towards recovery by 2011. He predicts that it will take until then for the demand for homes to catch up with supply.
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Article Sources:
CNN Money
Business Week
Victoria Stankard is a nationally syndicated writer and co-owner of Get Found Now, an online marketing and search engine optimization company. Victoria currently lives in Tampa, Florida with her husband, Michael Stankard and their two children. Victoria writes and manages search engine optimized content for industry leaders, who desire a strong Internet presence and want to dominate their market! You can contact Victoria via email at: victoria@getfoundnow.com
Leigh Brown, aka The Real Estate Diva, is a native of Concord NC in the Charlotte area. She grew up on a farm at the edge of Cabarrus County, still goes to the same church she grew up in (home of the world famous Mallard Creek Barbecue!), but has become a leader in area real estate through constant learning and continually upgrading technology to better serve buyer and seller clients. Leigh does indeed have a reputation as a barracuda-when it comes to protecting client interests. Her softer side is reserved for her husband and two kids who provide a constant source of joy-and entertainment
