Buffett: 'I'd Buy Up a Couple Hundred Thousand' Homes
Warren Buffett, the billionaire investor and Berkshire Hathaway CEO, said on CNBC's "Squawk Box" recently that he'd "buy up a couple hundred thousand" single-family homes if it was practical.
Buffett said that's because he believes purchasing a home with ultra-low mortgage rates and holding it for the long-term has become a better investment than stocks right now.
"Housing will come back, you can be sure of that," Buffett wrote in his annual letter to shareholders recently.
Buffett forecasts an increase in household formations, as more people who moved in with their parents or family members during the recession look to move out and get their own home soon.
"People may postpone hitching up during uncertain times, but eventually hormones take over. And while 'doubling-up" may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure," Buffett said.
Buffett said the recovery in the housing market could vary quite a bit among local housing markets, however. He did not provide a timeline of when he expected a full housing recovery, admitting that his prediction last year that a housing recovery will take shape within the year turned out to be "dead wrong."
Comment
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Comment by A. Ed Martinez, CDPE, SFR, CHS on March 2, 2012 at 2:42pm -
Southwest Florida is HOT right now and the drop in our inventory levels is starting to spark multi-offer situations again.....good sign but a bit scary
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Comment by Margaret & Chris Wojtowicz on March 2, 2012 at 12:12am -
We agree !!! Interest in buying in southeast Florida is going up. Great sign !
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Comment by Carolyn "Care" Bellamy on March 1, 2012 at 5:41pm -
Chuks you are right on the money!
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Comment by Chuks Odikpo on March 1, 2012 at 2:17pm
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Warren Buffett is right on the money!!! I really don't know why anybody will leave most of their investments on stocks. Use the Cash buy a House, Rent it out and buy back the Stocks with the Rent money If you like the stock so much.
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Comment by Jacqueline Moran on March 1, 2012 at 2:06pm
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Thanks Warren Buffet for his confirmation that this is a great time to buy!Great article!
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Comment by Rachel Pinder on March 1, 2012 at 1:38pm -
We would be glad to sell you some homes in the Bahamas Mr. Buffett.
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Comment by Carolyn "Care" Bellamy on March 1, 2012 at 12:45pm
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Wow, I give Warren Buffett "Two Thumbs Up" for his inpirational solution to the US housing market crisis!
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