Warren Buffett bets big on new home builders

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Warren Buffett bets big on new home builders

In the face of a recent surge in the 30-year fixed-rate mortgage, along with heightened expenses in construction and financing, coupled with a shortage of proficient labor, Warren Buffett, the CEO of Berkshire Hathaway, has notably injected a substantial sum of $814 million into three major US home builders: Lennar, D.R. Horton and NVR.

Similar challenges are being observed in Canada, particularly within the Greater Toronto Area, where a housing shortage mirrors the situation. As we anticipate the potential resurgence in home prices, akin to Warren Buffett's projections, it's not unlikely to witness further downward influence due to the prevalent elevated interest rates and the impending mortgage renewals.

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