Berkshire Hathaway revealed new stakes in three homebuilders, repeating a 2023 move and surprising investors. The housing market shows weakness despite expected Fed rate cuts, with an inversion between new and existing home median prices ($402,000 vs $435,000) and only six similar occurrences in 26 years. Sales fell 6.6% year-over-year in July, while mortgage rates remain elevated at 6.58% compared with 2.65% in 2021. Construction costs and labor shortages persist, with lumber up 30% since 2023. Analysts note past profits from housing bets, but current purchases may not be long-term holdings.
His annual shareholder letters are dissected for wisdom, and his quarterly SEC 13F filings trigger market speculation. When ) latest filing revealed new stakes in a trio of homebuilders Berkshire Hathaway's ( )( echoing his foray into the space in 2023, many investors were surprised. Although this repeat play suggests confidence in the industry's recovery, with housing signals flashing bright red, many wonder if Buffett is misreading the market thiss time - or is this a contrarian masterstroke?
A Tough Housing Landscape The housing market paints a grim picture, even with anticipated Fed rate cuts in September. According to data from the existing homes - an historic inversion, with new home median prices at $402,000 versus $435,000 for existing homes. It is something that has U.S. Census Bureau and the National Association of Realtors, new homes now cost $33,500 only happened six time s in the last 26 years, according to Reventure App.
Collection
[
|
...
]