In an CNBC interview on February 27th, Warren Buffett said the following when asked whether he’d recommend people buy stocks or houses right now:

“If I knew where I was going to live for the next five years or 10 years, I’d buy a home and I’d finance it with a 30-year mortgage. It’s a terrific deal…

If I had a way of buying a couple hundred thousand single-family homes… I would load up on them. And I would take mortgages out on them at very low rates… [With] a 30-year mortgage… it’s a leveraged way of owning a very cheap asset now. That’s as attractive an investment as you can make.” And in his latest letter to shareholders: “Housing will come back – you can be sure of that… Every day, we are creating more households than housing units. People may postpone hitching up during uncertain times, but eventually hormones take over… Fortunately, demographics and our market system will restore the needed balance…”