Buffett’s Housing Warning Signals Market Shift as Sellers Face New Reality

Warren Buffett's Berkshire Hathaway Home Services warns of impending home price cuts as inventory surges to 500,000 units - the highest level since 2013. The legendary investor's real estate arm observes panic among sellers who can no longer command pandemic-era premiums.

The housing market's dramatic reversal follows years of artificial scarcity caused by rising mortgage rates. Properties now linger longer on the market, with price reductions becoming commonplace across all regions. This inventory glut marks a decisive end to the seller's market dominance of recent years.

Buffett's bearish housing outlook arrives as the Federal Reserve maintains elevated interest rates. The shift creates unprecedented challenges for homeowners who delayed selling during the boom cycle, now confronting a buyer's market with fundamentally different rules of engagement.