Words: Ashley Rigg
Published: 17th September 2009
US: Housing crisis is over says Warren Buffett
Warren Buffet, one of the most successful investors in history (
net worth US $62 billion), told CNBC yesterday that the residential real estate crisis in the US is approaching an end.
Buffett explained his reasoning by simple supply and demand. “The reason is we're building a lot fewer houses and we're forming [more] households, so that solves itself over time. Doesn't do it in a day or a week, but it solves itself.”
He predicted that only an external shock would cause the housing market to get worse. “It has sort of plateaued at the– at the bottom right now, but if you got some horrible exogenous event, some– some, you know, 9/11– type event or worse– you know, you could have something that would be dis– really disruptive and start things all over again”
World real estate markets not far behind
Buffett predicts an improving outlook for global real estate markets. “The world will come back. I’ve never been able to tell whether it’s gonna be a week or a month or — six months. But we are on the mend. And — and if you look at — at housing prices and activity in the mid to lower price range, it changed dramatically from a year ago. We’re seeing some stability”.
Full interview on
CNBC
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