The segment starts of with a clip from Buffett himself where he provides some classic common sense Buffett advice: "If you can buy a home at 60% of the price of three years ago, and finance 80% of it at 3% you are going to make money over the long term."
The Buffett "housing CEO" is Ron Peltier of Home Services America who has a few comments on the housing market:
- 2012 was the first year with clear evidence of a housing recovery.
- 2011 was the bottom in the housing market.
- Unit sales were up 10% in 2012 and housing prices were up 7%.
- The recovery isn't uniform across the country, but it is definitely happening.
- Low interest rates and housing affordability at an all-time high will keep this recovery strong.
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