Buffett Was Right Again About The Housing Market — MarketBeat — October 26, 2023

Locator: 45844BUFFETT.

I bet Warren Buffett was even surprised.

See this link. The magnitude in the decline in new house prices was “head-turning.” — Barron’s.

Locator: 45837HOUSING.

In all the "stuff" that was reported today, I completely missed this until I was going through some of Liz's charts again. I assume everyone else saw this but me -- most remarkable / most remarkably, I didn't see this reported by anyone else and I certainly didn't see the headline -- again, it was probably only me … but … 

Someone else must have also noted it … Warren Buffett!!! He was right again!

Is Warren Buffett ever wrong? If you are sighing at the fact that you hesitated to buy construction stocks due to tales of doom and gloom, then today is your lucky day, as MarketBeat is bringing you yet another way to measure this market more clearly and maybe even ride the rest of the wave higher. 

Earnings season can bring you vast data and trends that you can trace back to the bigger picture, so you don't miss the forest by focusing on one or even a few trees. With two companies supporting the real estate sector, mainly construction and renovation, announcing their earnings this week, the writing is now on the wall.

PulteGroup is one of the 'comparable' companies like those Buffett bought last quarter in his bet for a sustained boom in construction. If you still need to catch up on those, here's a list (at the linked story) of Buffett stocks that will likely rise before Buffett's holdings take off, just by nature of the industry.

Pulte stock is up in the pre-market hours of Tuesday morning by as much as 2.4% after reporting on its third quarter 2023 earnings results, but more on their importance in a bit. 

Another company that provides a great indicator of spending activity for housing, whether new homes or renovation activity, has also entered the chat. Sherwin-Williams NYSE: SHW is another stock that is popping off in the pre-market session, this one by a more significant 3.1%.

Later, we’ll bring you up to speed on a bet by Buffett that may not turn out so well, suggesting he may be a mortal after all.