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/A…
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.
Zell bought The Chicago Tribune and The Los Angeles Times
.Sam Zell’s Empire, Underwater in a Big Way. bad timing
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!!!
the war debt was paid off by 1972
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
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.
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.
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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…
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
the Oracle of Omaha sucks
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