06/03/2026
Only one of the following can be true:
1) Housing prices will fall dramatically in the near future due to high prices combined with "high" mortgage rates. That said, labor prices will remain largely static, as well as material prices, keeping the cost basis of homes relatively constant. So LOWER prices plus flat costs will mean lower LOWER valuations for home builders in the near future.
2) Home prices will not fall, but will likely continue to increase due to the persistent shortage of housing stock across the country. That said, labor prices will remain largely static, as well as material prices, keeping the cost basis of homes relatively constant. So HIGHER prices plus flat costs will mean HIGHER valuations for home builders in the near future.
Before you make your guess as to which one is more likely than the other to be correct, see the headline below, and think about how often Berkshire Hathaway investors make bad/dumb investment decisions historically speaking. 🧐🤔
And if mortgage rates see meaningful declines, one of these is going to likely be explosively correct. 🤯🏡💵
If you're waiting for the right time to buy a home, or to move up in your home size/value, but are choosing to wait for the 'right' time, ask yourself what it is you know about the market that Berkshire Hathaway investment committees do not...and then call me, I am here to help.
