Warren Buffet worried about housing, should we be too?
Warren Buffet worried about housing, should we be too?
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Ok, so we all know him as one of America’s greatest investors, actually, I consider him one of the smartest investors, with some unbelievable foresight about what’s around the corner in terms of economics, Warren Buffett just gave his 2 cents about housing. He seems to be confused about the housing market or more importantly sheepish. OK I’ll say it, “I’ve been saying for a long time, this is a depression we’re in, and there will be another major crash in the Real Estate industry. Now don’t get me wrong I’m a “glass half full guy,” but, with quantitative easing (printing and pumping money into the economy) still going on since 08 at $85B a month (that’s 1 trillion a year), something’s gotta give, remember we have to suck all that printed money back into the Fed at some point (and there’s only one way to do that……raise interest rates). This house of cards will come crashing down. According to Warren Buffett “Housing is not that strong yet, and I’m surprised at that.” You can read his entire interview here.
Pending home sales were 8% lower in March than the same time last year according to NAR. Again according to Buffett, “Long term my signals are mixed, I really can’t advocate a position to a long-term investor.” We’re not out of the woods yet folks, far from it, be cognizant and be a realist, the reason I think so many of us are wondering why it seems to be good then really bad for us in the industry is buyers and sellers are dipping their toes in the pool, instead of jumping right in, hence why it seems like feast or famine at times. It isn’t us Realtors, its the US economy as a whole (how many of you have reassessed your marketing, SEO, CRM and scratched your head saying “What the heck?”). Remember last quarter the economy grew a whopping 0.1% and that’s called life support. It isn’t us guys, it’s the rest of the economy, and you wanna be in Real Estate huh?
