Stock buying legend Warren Buffett is back in the market buying real estate brokerages. Barring a terrorist attach or some other such calamity he thinks the bottom of the housing market has passed. NOW MAY BE THE TIME FOR YOU TO BUILD OR PURCHASE.
Parts of his interview with Becky Quick of CNBC is below. Click on the link at the end for a full transcript.
“Oh, I think weâ€™re certainly â€” weâ€™re through the worst of it in residential real estate in all probability. Andâ€“ andâ€“ and the reason is weâ€™re building a lot fewer houses and weâ€™reâ€“ and weâ€™re forming households, so that solves itself over time. Doesnâ€™t do it in a day or a week, but it solves itself. So weâ€™re further on that. Weâ€™re gonna have unusual losses in credit cards and in commercial real estate, all of that. But weâ€™re a lot better off than we were a year ago. I mean for one thing on some of theâ€“ some of the toxic assets have been flushed through. Thereâ€™s been capital raised. Thereâ€™s â€” weâ€™re immeasurably better than we wereâ€“ off than we were a year ago.”
“I think the odds are very much against getting significantly worse. Itâ€™s sort of plateaued at theâ€“ at the bottom right now, but if you got some horrible exogenous event, someâ€“ some, you know, 9/11â€“ type event or worseâ€“ you know, you could have something that would be disâ€“ really disruptive and start things all over again. But in terms of problems that weâ€™ve identified and are working with, weâ€™ve got more to come. But weâ€™reâ€“ weâ€™reâ€“ weâ€™re past theâ€“ weâ€™re past the critical point.”
“the world will come back. Iâ€™ve never been able to tell whether itâ€™s gonna be a week or a month or â€” six months. But we are on the mend. And â€” and if you look at â€” at housing prices and activity in the mid to lower price range, it changed dramatically from a year ago. Weâ€™re seeing some stability.”
Click to link to review the actual transcript. Buffett talks to Becky Quick of CNBC (transcript HERE)