Buffett states in his recent shareholder letter, "Housing will come back – you can be sure of that. Over time, the number of housing units necessarily matches the number of households (after allowing for a normal level of vacancies)."
"For a period of years prior to 2008, however, America added more housing units than households. Inevitably, we ended up with far too many units and the bubble popped with a violence that shook the entire economy. That created still another problem for housing: Early in a recession, household formations slow, and in 2009 the decrease was dramatic."
"That devastating supply/demand equation is now reversed: Every day we are creating more households than housing units. People may postpone hitching up during uncertain times, but eventually hormones take over. And while “doubling-up” may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure."
During an appearance on CNBC on Monday morning (February 27, 2012), Buffett said he would buy up millions of U.S. homes if it were possible.
While Buffett is addressing positive shifts in the real estate market, it seems the Breckenridge market has been ahead of the curve with larger growth in real estate. In 2011, the Breckenridge market grew 20% in real estate sales. Now is the time to buy real estate in Breckenridge.
Please contact us to learn more about real estate in Breckenridge and Summit County, Colorado. 800.774.7970 or 970.453.2200. Click here for the latest news about Breckenridge Real Estate.
Sources: RIS Media and BerkshireHathaway.com
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