In a letter to Berkshire Hathaway shareholders, Warren Buffett says “within a year or so residential housing problems should largely be behind us…..prices will remain far below “bubble” levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits.  Indeed, many families that couldn’t afford to buy an appropriate home a few years ago now find it well within their means because the bubble burst.”

If there’s anyone that could have an economic crystal ball, it would probably be Warren Buffett!