Predicting the U.S. Housing Recovery

February 27, 2012





Ever since the housing bubble burst, folks have wanted to know when the real estate market would recover. Last year, in his letter to the Berkshire Hathaway shareholders, Warren Buffett predicted that the U.S. housing recovery would begin within the year and help fuel economic growth. Buffett, when queried about this prediction said he was "dead wrong". However, he went on to add that "People may postpone hitching up during uncertain times, but eventually hormones take over. An while 'doubling up' may be the initial reaction of some during a recession, living with in-laws can quickly lose allure."





O.K., so when will the housing recovery begin? It is possible that we will only be able to pinpoint the beginning after it has been on its way for a while. Not being an economist, I do not know the statistical markers that signal a recovery. However, January and February give some credence to Buffett's quip. We are seeing more young couples making appointments with our agents to begin the house hunting process. Yesterday, at my open house, more than half of the visitors were young folks who were considering purchasing a home in the next twelve months.





Good signs.