June 25, 2012
By Blaine Rollins, CFA, 361 Capital
Ron Peltier, the executive building Berkshire Hathaway Inc. (BRK/A)'s real-estate brokerage by acquisitions, said he expects a rebound in U.S. home sales as banks liquidate seized properties after settling foreclosure-misconduct claims. The banks still have very large numbers of distressed or foreclosed real estate inventory," Peltier said. "They are now going to be making those properties available, and given the low inventories across markets, it's probably a good time to be selling." Berkshire, led by Chairman and CEO Warren Buffet, is adding to housing-related businesses as the company prepares for an eventual end to the slump. Minneapolis-based HomeServices agreed in the last two months to buy brokerages in Connecticut, Oregon and the state of Washington. Peltier said he will seek further deals and plans to enter the Northern California market within two years.
Source: This was excerpted from Bloomberg via 361 Capital's 361 Capital Weekly Research Briefing, April 16, 2012 publication.
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