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Warren Buffett: U.S. real estate will recover by 2011
2010-03-02
Billionaire investor Warren Buffett told Berkshire Hathaway investors that the U.S. residential real estate market will recover sometime in 2011. He says demand will start to match the excess supply created in the housing bubble.
Even as the market stabilizes and recovers, prices won't reach the bubble levels prior to the market's collapse, he says. Families who were priced out of the market a few years ago will find it "well within their means" in 2011, he says.
"Within a year or so, residential housing problems should largely be behind us," Buffett writes in the letter.
The U.S. had been over supplied in housing, he says.
"People thought it was good news a few years back when housing starts - the supply side of the picture - were running about two million annually," he wrote. "But household formations - the demand side - only amounted to about 1.2 million."
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