As reported on Bloomberg:
“Warren Buffett’s Berkshire Hathaway Inc. is extending its bet on the U.S. housing market by forming a venture with Brookfield Asset Management Inc. as low interest rates, inventory and prices spur a real-estate rebound.
Berkshire’s Home Services of America Inc. unit will be the majority owner of the venture to manage a U.S. residential real-estate affiliate network…The firms plan to offer a new franchise brand, Berkshire Hathaway Home Services, starting next year. Brookfield’s network has operated under the Prudential Real Estate and Real Living Real Estate brands.”
According to the new company’s announcement:
“This new franchise brand joins the existing brands and affiliate networks of Prudential Real Estate and Real Living Real Estate and will be available in 2013.
The resulting combined networks of more than 53,000 Prudential Real Estate and
Real Living Real Estate agents were responsible for generating in excess of $72 billion in residential real estate sales volume in 2011, and operate across more than 1,700 U.S. locations.”
Mr. Buffett purchases a large number of real estate companies and plans to use the iconic Berkshire Hathaway name in the rebranding. We assume this is a great sign that he believes a real estate recovery is guaranteed.