Yes, home prices are continuing to fall according to the latest Case-Shiller Home Price Index which was released today, but if you listen to a couple of billionaire investors, you might want to step up and purchase a home.
Both Warren Buffett and Donald Trump are pounding the table saying now is the time to buy. Buffett would like to own several hundred thousand rental homes across America and he may get his chance with some of the proposals that are rumbling around Washington right now. Word is that Fannie Mae and Freddie Mac are preparing to do massive bulk sales of their REO investors to investors who will rent out the homes. I’m sure Mr. Buffett will figure out a way how to participate in this.
Prices are falling but don’t be fooled in to thinking you will just wait to pick the bottom and then buy a home. Inventory might be kind of slim when we get to that point.
- Warren Buffett Speaking on Real Estate Investments in 2012 (southernhomes.wordpress.com)
- Warren Buffett’s #1 Investment Idea (businessinsider.com)
- Consensus Housing Forecast for 2012: 700,000 starts (calculatedriskblog.com)
- Gov’t moves to convert foreclosures to rentals (ajc.com)