Berkshire's Real Estate Unit Sees 'Signs of End of Downturn'

Berkshire Hathaway’s (BRK.A) (BRK.B) HomeServices of America residential real estate brokerage unit, run by CEO Ron Peltier, is putting the pedal to the metal acquisition-wise:

Peltier said he expects to spend $200 million in the next two years paying 20 cents to 25 cents on the dollar for distressed brokerages to get HomeServices into new markets. The HomeServices chief executive officer said he couldn't give details on pending deals, though he expects at least one to close by the end of the year. HomeServices spent about $10 million buying companies in the past year, Peltier said.

A $100-million-per-year deal pace us quite a stepup from the company’s earlier $10 million-per-year rate. Notably, Peltier says HomeServices is shifting from in-market tuck-in acquisitions to larger deals in entirely new markets. He sounds bullish! “We think we are starting to see signs of the end of the downturn, so our interest is growing in making some very noteworthy acquisitions going forward,” he adds.