Warren Buffett, Chairman and CEO, Berkshire Hathaway Inc. , speaking during a Bloomberg TV interview in New York.
“Dr. Horton also showed the foresight to begin developing a rent-to-own model with home purchases slowing. They’ve focused more on developing single-family rentals versus actual homes for sale, while investing over $1 billion in this arm in the past three years,” Bustamante said.
Data compiled by the National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, showed that confidence among builders in the US housing market fell unexpectedly in August as rising mortgage rates dampened demand. consumers. for new homes.
The index fell to its lowest level in three months. Still, Buffett sees something in this sector.
“In the short term, some homebuilders are going to have to reset price points, but Warren always seems to be right, so the long-term play is clear,” Bustamante told FOX Business.
with the The Fed is rumored To offer further tightening and if Treasury yields make another advance over the next month or two, we could easily see more pressure on housing stocks.”
DR Horton shares are up nearly 5.3% over the past three months and nearly 31% year-to-date. Over the past year, stocks have swelled nearly 56%.
the Oracle of Omaha It also bought 11,000 shares of Ryan Homes parent company NVR and more than 152,000 shares of Lennar homebuilder.
