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Berkshire's Peltier Says Bank Settlement Will Fuel Home Prices-Bloomberg

|Includes: BRK.A, Berkshire Hathaway, Inc. Cl B (BRK.B)

Ron Peltier is leading Berkshire Hathaway Inc. (BRK/A)'s real-estate brokerage believes that the recent $25 billion settlement between the big banks and state and federal authorities is likely to lead to a large increase in home sales. Inventory is down and part of the reason why is that the turmoil over servicing has forced the banks to hold them on the balance sheet. With these issues now resolved we should see more activity and there are a lot of willing buyers, most prominently investors paying cash. For us to see a sustained improvement in housing we need to see mortgage lending and household development but I really think it is simply a matter of time.

Disclosure: I am long BRK.B.