Warren Buffett has updated his view on the economy: Housing, he says, is now improving faster than everything else.
He told CNBC: “For a couple of years, I’ve been telling you that everything except residential housing was improving at a moderate rate…”
The last two months have been sort of the opposite. The general economy in the US has been more or less flat; the growth has tempered down. But residential housing — we’re seeing a pickup.
But he tempered that comment by pointing out that “it is from a very low base, and it doesn’t amount to a whole lot yet — but it is getting better.”
What’s particularly good about this is that housing tends to lead the rest of the economy, so if the recovery slows a bit (as Buffett is suggesting), but housing is doing well — well, that means housing will start to pull everything else with is. Hopefully.