W
arren Buffett's Berkshire Hathaway is reportedly in talks to sell its real estate brokerage business, HomeServices of America, to New York-based Compass Real Estate. This move has sparked debate among experts, with some viewing it as a leveraged bet against US home prices and others seeing it as a consolidation play within the realty sector.

    Compass has made an offer to acquire Berkshire's realty business, which includes Real Living, for an undisclosed sum. The deal would bring Compass' total offices to over 820 and franchises to 270, solidifying its position as the second-largest US brokerage.

    The sale has also caught the attention of billionaire investor Chamath Palihapitiya, who tweeted that Buffett is essentially selling his bet against US home prices. However, Amy Nixon, a DFW housing analyst, disagrees, suggesting that Buffett may be betting on the transformative power of real estate technology to reshape the industry.

    Regardless of the motivations behind the sale, higher interest rates are likely to impact the housing market. As the Federal Reserve prepares to meet on March 18 and 19, rising interest rates will strain homebuyers with increased monthly payments and sellers facing reduced demand and lower offers.

    For investors looking to navigate this landscape, alternative options like Arrived Home's Private Credit Fund offer a historically high annualized dividend yield of 8.1%*. With a minimum investment of just $100, this fund provides access to a pool of short-term loans backed by residential real estate.