Berkshire Is Betting on a Housing Rebound

by Christopher Freeburn | August 15, 2013 10:35 am

homeForSale Berkshire Is Betting on a Housing Rebound[1]A company owned by Warren Buffett’s Berkshire Hawthaway (BRK.A[2], BRK.B[3]) is expanding its presence in the realty market[4].

After a wave of acquisitions that boosted its reach in Missouri and the Northwest over the past two years, HomeServices of America is turning its attention to the Middle Atlantic states. The company has acquired Prudential & Roach Realtors, which serves Delaware, Pennsylvania and New Jersey, Bloomberg notes.

After adding Prudential & Roach — which operates 62 offices, employing 4,000 representatives — HomeServices of America will compete in 24 states.

In addition to HomeServices of America, Berkshire Hathaway holds a large stake in the biggest issuer of U.S. mortgage loans, Wells Fargo (WFC[5]).

Earlier this year, Standard & Poor’s cut Berkshire Hathaway’s credit rating to double-A[6], warning that the company is too dependent on dividends from its insurance operations.

Shares of Berkshire Hathaway fell about 1% in Thursday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/07/homeForSale.jpg
  2. BRK.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.A
  3. BRK.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.B
  4. expanding its presence in the realty market: http://www.bloomberg.com/news/2013-08-14/berkshire-buys-prudential-fox-broker-for-pennsylvania-growth-1-.html
  5. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  6. cut Berkshire Hathaway’s credit rating to double-A: http://investorplace.com/2013/05/should-i-buy-berkshire-3-pros-3-cons/

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