May 10, 2006


Pointing his finger at South Florida, Warren Buffet said the following to CNN-Money:

"What we see in our residential brokerage business [HomeServices of America, the nation's second-largest realtor] is a slowdown everyplace, most dramatically in the formerly hottest markets. [Buffett singled out Dade and Broward counties in Florida as an area that has experienced a rise in unsold inventory and a stagnation in price.] The day traders of the Internet moved into trading condos, and that kind a speculation can produce a market that can move in a big way. You can get real discontinuities. We've had a real bubble to some degree. I would be surprised if there aren't some significant downward adjustments, especially in the higher end of the housing market."

While Fiserv Lending Solutions, a provider of mortgage and consumer lending services, warned Las Vegas real estate will tumble a whopping 8.2 percent in 2006, the largest predicted fall among the 379 metro areas studied.

For 2006, they say the DC-Arlington-Alexandria market will drop 1.7 percent and the Bethesda-Gaithersberg market will fall 2.5 percent.

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