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445818http%3A%2F%2Fwww.therealestatebloggers.com%2Fhousing-general%2Fwarren-buffet-predicts-real-estate-rebound-in-2011%2FWarren+Buffet+Predicts+Real+Estate++Rebound+--+In+20112010-03-01+16%3A28%3A18Tom+Roycehttp%3A%2F%2Fwww.therealestatebloggers.com%2F2010%2F03%2F01%2Fwarren-buffet-predicts-real-estate-rebound-in-2011%2F

Real Estate

Warren Buffet Predicts Real Estate Rebound — In 2011

  • by Tom Royce
  • March 1, 2010

Warren BuffetIf 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.”

— Tom Royce

Tom has been writing about real estate since he founded The Real Estate Bloggers since 2007. Connect with me on Google+

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18 Comments

  1. Real Estate Market to Rebound in 2011 | San Francisco Peninsula Real Estate says:
    March 1, 2010 at 4:09 pm

    [...] Click here for full article. [...]

    Reply
  2. Warren Buffet Predicts Real Estate Rebound in 2011 | Helen Oliveri's Weblog says:
    March 1, 2010 at 5:04 pm

    [...] The Real Estate Bloggers [...]

    Reply
  3. itstuff says:
    March 2, 2010 at 8:15 pm

    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.

    Reply
  4. AB Estates International says:
    March 8, 2010 at 3:03 pm

    Hoping the Oracle of Omaha also has an 8 ball to consult.

    Reply
  5. Should You Buy a Home on Seattle’s Eastside Now or Wait? « Eastside Real Estate Buzz says:
    March 8, 2010 at 7:10 pm

    [...] got my crystal ball out as did many others. Money Magazine made a strong case for buying now. Warren Buffett, on the other hand, thought the real estate market would pick up in 2011. Luke Mullins of US News and World Report presented the positive aspects of home ownership, even in [...]

    Reply
  6. Joe Carfora says:
    March 11, 2010 at 11:12 am

    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/A…

    Reply
  7. BPO says:
    March 17, 2010 at 8:13 pm

    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.

    Reply
    • wrc says:
      December 17, 2010 at 5:29 pm

      Zell bought The Chicago Tribune and The Los Angeles Times

      .Sam Zell’s Empire, Underwater in a Big Way. bad timing

      Reply
  8. Zell Predicts Real Estate Recovery Starts End of 2010 : The Real Estate Bloggers says:
    March 19, 2010 at 7:40 am

    [...] you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!Last week Warren Buffet will rebound in 2011, today Sam Zell (another billionaire) said essentially the same thing. Zell speaking with Bloomberg [...]

    Reply
  9. nicky says:
    November 3, 2010 at 10:39 am

    I'm with Warren Buffet…he is the man…the market will crank in 2011..it is supply and demand…but yes we will be in debt…we have been in debt since WWII…there is not doubt…but we will also see 2012 in good shape and 2013-14 too….and by 2015, watch out because that is when everything is poised to really take off….and yes, we will probably always be in debt but isn't that what we are use to anyways!!!

    Reply
    • wrc says:
      December 17, 2010 at 5:24 pm

      the war debt was paid off by 1972

      Reply
  10. wrc says:
    December 17, 2010 at 5:22 pm

    2013-14 for a bottom

    it only been four years.

    Last cycle it took 6 years and then it was not as bad as it is this time around

    Reply
  11. sfs says:
    December 28, 2010 at 8:49 pm

    as bad as it seems, many investors and sideliners will not wait this one out too long. this is a cycle. they have seen how the realestate market skyrocket in the last recession. when it rebound in 2012 it will take off fast.

    Reply
  12. Laguna Niguel Homes says:
    January 1, 2011 at 1:04 pm

    Heres my first comment for 2011 and prediction. Its still a mixed bag here in South Orange County and I don't see much of a change from the 2010 market trends, but the wounds are slowly healing. New home purchases will remain slow as they are still competing with short sales and foreclosures in there price range. There are plenty of buyers in the 300k to 700k price range and these homes seem to be somewhat stableing, however the supply is mainly being drip feed by the short sale inventory making it hard to get your hands on them. Equity sellers willing to sell at market value in the 300k to 700k price range will be pleased with multiple offers. The high end market 1.8m + will continue to slide as there are not many buyers in this range. The rental market remains strong in the $2,500 to $5,000 range and many sellers not willing to sell at market value will convert to landlords to weather the storm.

    Reply
  13. victoria says:
    April 22, 2011 at 1:18 am

    It’s good to see this information in your post, I was looking the same but there was not any proper resource, thanx now I Thank to the post.I really loved reading your blog.It was very well authored and easy to understand

    http://www.estatetherapy.com

    Reply
  14. beth says:
    April 22, 2011 at 1:20 pm

    This is an educational article.

    I found and interesting article that interviews FSBOs as well as agents. It show both sides of the coin of selling your own home. The ups and downs. But selling one's own home may make sense in a down real estate market, if it is done right.
    http://articles.philly.com/1992-11-05/news/260081…

    Reply
  15. @fake_watches says:
    April 30, 2011 at 8:52 pm

    good cuz it's now starting to pick up and it is 2011, almost May and we're getting out house all cleaned and ready to show

    Reply
  16. winchester says:
    October 7, 2011 at 4:44 am

    the Oracle of Omaha sucks

    Reply
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