Yes, home prices are continuing to fall according to the latest Case-Shiller Home Price Index which was released today, but if you listen to a couple of billionaire investors, you might want to step up and purchase a home.
Both Warren Buffett and Donald Trump are pounding the table saying now is the time to buy. Buffett would like to own several hundred thousand rental homes across America and he may get his chance with some of the proposals that are rumbling around Washington right now. Word is that Fannie Mae and Freddie Mac are preparing to do massive bulk sales of their REO investors to investors who will rent out the homes. I’m sure Mr. Buffett will figure out a way how to participate in this.
Prices are falling but don’t be fooled in to thinking you will just wait to pick the bottom and then buy a home. Inventory might be kind of slim when we get to that point.
If you think you have a lot of taxes to pay this year, think of how much money giants like Goldman Sachs and Berkshire Hathaway have to shovel out this November in federal taxes. And while its true that they might have the funds to afford it, just like everyone else, they will try and find some way to pay as little as they can. One way for them to do this is to bid on the low income housing tax credits from developers like Fannie Mae and use them to offset their federal tax expenses.
If you do some DD you will see that Warren has announced his involvement with MBS's in case you haven't read. I am simply saying Warren's strategic investment strategy is to buy low and sell high and that includes companies in c-ship as he has done in the past. I am betting he will publicly surface and announce some type of involvement/investment with Freddie Mac and Fannie Mae.