Buffett Bets Big on Booming Housing Market Despite Shortage Squeezing Buyers
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Warren Buffett's firm Berkshire Hathaway recently invested over $700M in homebuilder DR Horton's stock and over $100M in other homebuilders.
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This large investment suggests Buffett is betting on continued strength in the housing market.
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A housing shortage and favorable demand trends are driving homebuilder stocks up, with the sector up 30% in 2023.
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While good for investors, the shortage means further home price and inflation increases for buyers.
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However, signs of dropping mortgage rates could offset higher prices, keeping home affordability steady.