Warren Buffett's Berkshire Hathaway Bets on Homebuilders

Warren Buffett's Berkshire Hathaway has made significant investments in U.S. home builders, including D.R. Horton, Lennar, and NVR, totaling over $800 million. This move, disclosed in recent 13F filings, has sparked a rally in home builder stocks. The investments come amid a strong demand for housing and a shortage of existing homes for sale. Berkshire's strategy includes deepening its stake in the home building sector, which could highlight the industry's strong cash flows and healthy balance sheets. The current mortgage market, with low-interest holders reluctant to sell and high-interest buyers unable to purchase, presents challenges.

What does Evercore analyst Stephen Kim suggest about Berkshire Hathaway's investment in home builders?

What challenges do potential home buyers face in the current market according to the text?