BuzzBuzzHome Corp.
March 8, 2010

The US residential real estate market will rebound in 2011, says Warren Buffet!!

I don’t know much about economics, but Buffet sure does. According to WB, in his letter to Berkshire Hathaway stockholders, the demand curve will turn and residential markets will start to improve for the American market.

“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…

…People thought it was good news a few years back when housing starts — the supply side of the picture — were running about 2 million annually. But household formations — the demand side — only amounted to about 1.2 million.”

Yes. Great news. But, maybe not soon enough. So… if in the industry, tighten your belts… save your money… and build yourself for 2011.

Developments featured in this article

More Like This

Facebook Chatter