In virtually every investment circle, the name of Warren Buffett captures attention and, even though few of us can take direct action based on his comments…we all think about it. It seems like just about every few months his investments make news and for the most part, he’s been investing in businesses, and big businesses at that, like his purchase of the Burlington Northern Railroad in 2009. Well, what’s he bullish on now? US Housing! As he puts it, “A housing recovery will probably begin within a year or so.”
And, true to form, he puts his money where his mouth is, having just acquired a lead brick manufacturer in Alabama and a $55 million roofing plant in Ohio.
It seems to me that the banks have been holding the housing market hostage for about as long as they are able and pretty soon, the log-jam will break loose. We wonder about the “shadow inventory” of housing waiting for foreclosure and release to the marketplace…will it cause a deeper decline in values? a “double-dip”? Nobody really knows but if it does, it is likely to be short-lived and when the recovery begins, it could accelerate very quickly. Remember the housing “bubble?” We all know it was created by over-inflated property values but now it seems things have over-corrected and we have just the opposite of the housing bubble. When this one pops, market values may take off just as fast as they fell a couple years ago. If they fell in your neighborhood (and whose didn’t?) then they will rise in your neighborhood. If you have a chance to buy a home now, in Temecula or in any city, do it. Do it now! Again…just my opinion…but one shared (apparently) by Warren Buffett.
If you are looking for ways to invest in the housing market in Southern California, contact us at firstname.lastname@example.org If we can’t help you, we know someone who can.
Leave a comment…what do you think? Is Warren Buffett jumping the gun here? Is he right about the housing market recovery? If he’s right, will it bring about the economic recovery in general that we are all hoping for? How does all this effect you?
For more info: http://www.consumeraffairs.com/news04/2011/02/warren-buffett-is-bullish-on-america.html