If the Oracle of Omaha, Warren Buffet, is correct the residential real estate market will rebound in 2011. Buffet, in his letter to Berkshire Hathaway stockholders, thinks that the demand curve will turn at that state and the residential markets will start to improve.
I am sure this news is not what real estate agents are hoping to hear, I tend to agree. The housing market still has way too much overhang from foreclosures and short sales for buyers to have confidence investing in homes. Add to that a nervous economy, it would be foolish to think that all will be okay this summer.
So real estate agents, tighten that belt and continue to build your systems this year so you are ready for 2011.
“Within a year or so, residential housing problems should largely be behind us,” Buffett wrote Saturday in his annual letter to the shareholders of his Berkshire Hathaway. “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.”
Record foreclosures flooded a U.S. real estate market already glutted with unsold property, causing housing starts to fall.
“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,” wrote Buffett, 79, chairman and CEO of Omaha-based Berkshire. “But household formations — the demand side — only amounted to about 1.2 million.”
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I don’t really see how that is all that hard a prediction to make. I could have predicted that at some point in 2011 housing prices will go up for a period of time. If he were able to say where, when, how much, that would be impressive.
Hoping the Oracle of Omaha also has an 8 ball to consult.
The “real estate rebound” is on the horizon. The April 30th incentive deadline is something is only going to help. I was just talking about this in my blog
http://blog.bestplace2move.com/blog-0/bid/16813/April-30th-Will-Be-Here-Before-You-Know-It
I do a lot of BPOs and REOs as a real estate agent. Doing quite well for myself. I shifted with the market to make ends meet, but stand to make a fortune when this thing turns around! If the Oracle says it’s so, then NOW is the time to buy before 2011 gets here.
P.S. — 1st Quarter of 2010 is drawing to a close. I’m not seeing the draw of buyers with the homebuyer credit(s) currently available $8,000 as much as anticipated. Hoping it picks up before end of Q2.
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