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What advice does Warren Buffett have for Home Buyers?

Hello Bloggers, Thanks for stopping by this weekend. It’s 5:28 p.m. Do you know where your real estate professional is?

Marti Hampton is right here in her office! I’ve completed my appointments for the day and am getting ready to do some paperwork that requires quiet reflection of the current market condition to review plans for our sellers and buyers to reach their goals in real estate. The market has picked up with showings and with offers. I am looking forward to seeing March’s numbers of pending sales. I feel a “change” a coming! Since Raleigh real estate and Cary real estate lagged behind the 2.1% national gain posted nationally, I am convinced our Triangle market will not be far behind.

Warren Buffett’s is quoted giving real estate advice as such: “Be a buyer of real estate when everyone else wants to sell real estate”. It sounds so simple when he says it. I was asked to join a meeting at WRAL last week and was asked by one of the executives to answer “What is the problem with the real estate market and why we are not currently selling more homes?” I don’t remember how I answered that question, but have thought a lot about the answer since that meeting. After all, why aren’t we selling more homes?

The answer I believe is closest to the truth is that we have a crisis of national confidence and it hit critical mass (I hope several months ago). We got so much negative news that we all went on overload. The news media is not all roses and hearts now, but it’s backed off of the intensity that it was at the height. So we’re beginning to believe again.
My personal belief that a simple tax credit of $18,000 for ANYONE that buys real estate would have given us a jump start on getting homes sold to borrowers that have good credit. Send that idea to your congressmen and representatives if you dare. I certainly have. Mail them a tea bag too while you are at it. Here is my last opinion of the day. The Fed printed money last week. A lot of money! When this happens, you can bet that inflation will not be far behind. House prices will go up right along with everything else. Even during this slow down, Triangle real estate has risen slightly during a recession. Imagine what it will do during inflation. Rates will also go up.

Buy a great home in a great location or trade up or down for a better home in a stronger location that will be a solid investment. Then pay your mortgage off! If you have questions about what really is a good investment in real estate – that’s what we are here for! Call or e-mail me at marti@martihampton.com. I’d love to hear from you. Till next time, God Bless and have a great weekend.

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