Warren Buffet on real estate
Jake | February 19, 2010Please hurry and read this article series about Berkshire and its leaders while its still online. In this Motley Fool article series, Mr. Buffet has been commenting various matters, but his comments on real estate are especially enlightening. Some ideas:
Real estate values can swing enormously.Right now they are seeing their residential brokerage business in slowdown all over, most dramatically in the hottest markets.
If people are buying housing for use, market is not swinging much, but when people are buying real estate as an investment, then valuations tend to swing.
High-end residential real estate has bigger valuation bubble than low-end residential real estate.
Has anyone ever heard of the theory of supply and demand? When Mr. Buffet is having this kind of thoughts market situation is getting really serious. Maybe it is time for Cinderella move and leaving the real estate dance floor with grace.
2004 fewer than 9000 condos were for sale and there were around 2900 transactions per month. Now, there are 30000 condos for sale and less than 2000 transactions per month.
