Two bits of good news today:
1. Pending Home Sales Up
Signed contracts for U.S. home resales rose to a nearly two-year high in January, an industry group said on Monday, further evidence of a budding recovery in the housing market.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in January, increased 2 percent to 97.0 — the highest reading since April 2010 when there was a stampede of activity due to the first time home buyer tax credit.
This news, in the middle of winter no less, should not be overlooked.
2. Buffett: Single Family Homes Better Long Term Investment Than Stocks
Warren Buffett says along with equities, single-family homes are a very attractive investment right now.
Appearing live on CNBC’s Squawk Box, Buffett tells Becky Quick he’d buy up “millions” of single family homes if it were practical to do so.
If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.