W
arren Buffett made headlines in 2012 when he shared his optimistic views on the housing market during an interview with CNBC's Becky Quick. At that time, the US economy was still recovering from the 2008 financial crisis, and the housing market was one of the most affected sectors. Despite this, Buffett saw a prime investment opportunity, stating that if he could buy hundreds of thousands of single-family homes at low interest rates, he would do so.

    For Buffett, homes were not just shelter but also a lucrative investment, especially with borrowing costs at historic lows. His advice was to be greedy when others are fearful and to think long-term. He famously said, "Be fearful when others are greedy. Be greedy when others are fearful," which captured the mindset needed to navigate the turbulent market.

    Investors who followed Buffett's advice likely saw significant returns as the market rebounded. For example, between 2012 and 2024, the median price for a single-family home in the US increased from around $180,000 to over $418,000, a jump of roughly 132%. Real estate has proven to be a steady way to build wealth.

    Buffett's advice was not just about being optimistic but also about simplicity. He recommended buying homes with a 30-year mortgage, arguing that they would outperform stocks if purchased at the right price over the long term. The billionaire investor has consistently praised the 30-year mortgage, citing its benefits and stability.

    In today's market, where interest rates are rising and home prices are surging in many regions, Buffett's advice to think long-term remains relevant. Holding properties for an extended period can still yield significant returns, making it a strategy that continues to pay dividends.