Davidson Realty, Inc.

Looks Like The “Oracle from Omaha” Was Right, Again

December 11, 2012

 | 
Posted by in News, Northeast Florida Market Trends

In February this year during an interview on CNBC, Warren Buffet said if he could find a way to manage them, he’d buy up “a couple thousand single family homes”.  Buffet explained single-family homes are a very attractive investment now and, if held for a long period of time and purchased at the low interest rates currently available, houses are even better than stocks.

First, a personal message to Mr. Buffet:  Shelby Heinemann and our Davidson Property Management team would be happy to help you manage those couple thousand single-family homes!

In all seriousness, I expect this is another time when history will prove Mr. Buffet right.  In the few months since that CNBC interview, we’ve seen significant improvements in the market.  People are realizing that now may be a golden time to purchase a home.

Mortgage rates reached an all-time historic low this July and the average 30-year fixed rate is around 3.59% today.  In John Waggoner’s August 2012 USA TODAY article “If You Can Pull It Off, A Home Is A Smart Investment”, he writes, “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation.”  Waggoner also explains that, “Thanks mainly to low home prices and interest rates, the NAR’s housing affordability index rose to its highest level on record. (The higher the index, the more affordable the average home.)”

While I’m not sure it’s because of Warren Buffet, plenty of people have returned to the real estate market.  November was another strong month of sales ($7.8 million) and closings ($5.2 million) at our office in World Golf Village.  Here’s another positive sign for real estate: we’ve added 21 new agents to our Davidson Realty team this year alone, a company record.

, , , , ,
(0) Comments
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • email
  • LinkedIn
  • StumbleUpon
  • Twitter
  • Yahoo! Bookmarks
  • Yahoo! Buzz

Comments are closed.

Davidson Realty