Warren Buffet, described by many as the world’s greatest investor, has assembled a platform to invest in real estate. There are many indications that we have seen the bottom of the real estate price decline and there are now opportunities to profit from real estate. Not much could be a larger endorsement than Warren Buffet jumping in and participating. Here is an excerpt of a recent article from Bloomberg News.
Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) is extending its bet on the U.S. housing market by forming a venture with Brookfield Asset Management Inc. (BAM/A) as low interest rates, inventory and prices spur a real-estate rebound.
Buffett, 82, said in July that the U.S. home market was beginning to improve. Berkshire’s billionaire chairman and CEO tracks economic activity, in part, by studying the results of the company’s more than 70 operating businesses including ones that build manufactured homes, make paint and sell insulation.
“It was just a question of getting households in balance with” the supply of homes, Buffett told Bloomberg Television’s Betty Liu in a July 13 interview. “That happens in different paces in different parts of the country, but you have seen a much better balance developing here in recent months. And that’s why you’re seeing some pickup in prices in places.”
Housing prices rose 2 percent in August from a year earlier, the biggest gain since July 2010, according the S&P/Case-Shiller index of property values in 20 U.S. cities. The number of homes for sale in the U.S. dropped 18 percent last month from a year earlier, according the National Association of Realtors website.