Today, we’re talking about the man, the myth, the legend - The Oral of Omaha - Warren Buffet. Buffet is arguable the greatest investor of all time, and he doesn't make impulsive bets. He has spent decades buying things other people won’t touch, strategizing, and holding them for decades. So when Berkshire Hathaway put $8.5 billion on the table in a single housing deal, it's worth asking: what does he see that the rest of us are still figuring out?

On June 1st, Berkshire Hathaway (Warren Buffet’s company) announced it's acquiring Taylor Morrison, America's 6th largest homebuilder, in an all-cash deal. The purchase price values Taylor Morrison at $72.50 per share, a 24% premium to where it was trading just days before. Berkshire's new CEO Greg Abel described it as a reflection of the company's deep, long-term commitment to American housing. The deal is expected to close later this year.

Berkshire already owns Clayton Properties Group, the 12th largest homebuilder in the country. Combine the two and Berkshire becomes the 4th largest homebuilder in the United States, trailing only D.R. Horton, Lennar, and PulteGroup. That's roughly 23,000 new homes a year under one holding company.

The past few months have seen a full reshaping of the homebuilding industry, and some of the most aggressive buyers aren't even American companies. Japanese firms completed four separate U.S. homebuilder acquisitions in a five-week span this spring. But Utah's story started long before that.

Back in 2017, Sumitomo Forestry acquired a 70% stake in Edge Homes, one of the largest production builders in the state, for around $70 million. It barely made headlines at the time. This past May, that same company completed a $4.5 billion acquisition of Tri Pointe Homes, vaulting Sumitomo to the equivalent of the 5th largest homebuilder in the United States. What looked like a modest bet on a Utah builder nearly a decade ago turned out to be an early move in a much larger strategy. This spring, a second Utah builder entered the picture when Iida Group Holdings, through its subsidiary Hajime Construction, acquired a majority stake in Wright Homes here on the Wasatch Front.

Japanese-owned builders now account for close to 6% of U.S. single-family home construction, up from essentially zero a decade ago. And Utah has been at the center of this trend longer than most people realize.

So what is driving all of this? Scale and patience. Homebuilders have been navigating a rough stretch since the pandemic boom faded. Rates stayed elevated, demand softened, and the builders who have survived are the ones with enough capital to absorb the pressure. Bigger builders with deeper pockets can negotiate better land prices, move faster on new communities, and outlast a tough cycle without bleeding out by offering better incentives to home buyers. The companies making these acquisitions aren't trying to time the market. They are betting that long-term housing demand in growth states like Utah keeps climbing, and they want to be at the front of it.

If you’re shopping for a new home, that competition works in your favor right now. Large builders are doing everything they can to keep sales moving, which means buyers are seeing some of the most aggressive incentives in recent memory. Rate buydowns worth tens of thousands of dollars, closing cost credits, and price reductions are all on the table. As consolidation continues and well-capitalized builders compete for the same pool of buyers, that pressure doesn't ease.

If you have been on the fence about new construction in Utah, this is a good time to get serious about what is actually available before the cycle shifts and those deals disappear.

Here's the honest reality for anyone thinking about listing: a brand new home with a builder-paid rate buydown is your competition. When a buyer can walk into a finished spec home and get their rate knocked down a full point or more at closing, your resale listing has to earn its price.

That doesn't mean the market is working against you. Existing homes still offer things new builds can't, including established neighborhoods, larger yards, mature landscaping, character, and move-in availability without a construction timeline. But the sellers who win right now are the ones who price correctly from day one and present their home in a way that gives buyers a compelling reason to choose it.

If your home has been sitting on the market longer than expected, or you are thinking about listing and want to know what it would actually take to sell in this environment, that is exactly the kind of conversation I have with Utah homeowners every week.

If you are trying to decide whether now is the right time to buy, sell, or simply want to know what your home is worth in today's market, that is exactly what I am here for. Reply to this email or give me a call and let's figure it out together.

Here to serve,

P.S. Curious what your home is worth in today's market? I offer a free, no-pressure market analysis for homeowners in Utah. Just reply to this email or give me a call and we will take a look together.