What Does Buffet Say About The Buckhead Real Estate Market?Posted by Ben Hirsh on Tuesday, April 24th, 2012 at 2:47pm.
Warren Buffet recently told a CNBC reporter that he would buy "a couple hundred thousand" single family homes if it were practical to do so.
"If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down."
Buffet was obviously not talking directly about the real estate market in Buckhead, but it appears that the lower prices and ultra-low interest rates thats he mentioned have invigorated Buckhead Home buyers as they purchased homes in 2012 at a faster rate than they did last year.
As the chart below shows, more homes sold in Buckhead during the first quarter of this year, despite inventory levels dropping by 29% during the same period. It looks like the laws of supply and demand may step in soon and reverse the downward price trend.
What Does This Mean For You?
While buyers still seem to be on top in this market, there has been a noticable shift in the market toward sellers having more leverage. The low inventory has meant a lot of competition among buyers, with multiple offers being the new normal. Smart buyers are being patient for the right property to come along, but then pounce quickly when it does.
If you are on the fence about buying, then now may be the time to take Warren Buffet's advice and purchase a new home. Give me a call to get started today!
Ben Hirsh - Broker/Buckhead Specialist
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