"We're still inching ahead, but we're inching," said Buffett, who addressed a variety of topics during a two-hour appearance on CNBC Wednesday.
The head of Berkshire Hathaway Inc. said he gets a sense of the economy's direction from reports he gets from subsidiaries of the Omaha-based conglomerate. Its holdings include the BNSF railroad, Clayton Homes and a large real estate brokerage.
Buffett said he thinks the economy will improve no matter whether President Barack Obama or Republican nominee Mitt Romney wins although he supports Obama. Buffett said he thinks the biggest differences between the two men are on social issues and who they would appoint as judges.
"I think the economy will get better under either one of them," Buffett said.
Buffett said the U.S. housing industry is starting to rebound, but it is still well off its peak. Buffett says Clayton is selling 10 percent to 15 percent more manufactured homes and Berkshire's real estate brokers are handling 15 percent more transactions.
He said the housing recovery will help hiring eventually.
Buffett said he thinks the solution is obvious to all the nation's leaders, but action in Washington, D.C., is on hold because of the election. Buffett says it's clear the solution will involve a mix of tax increases and spending cuts.
"It's going to get done," Buffett said. "The American people won't stand for it not getting done."
He also praised the job Federal Reserve Chairman Ben Bernanke has been doing, and said he would support Bernanke in a third term.
Buffett said he continues to look for a major acquisition for Berkshire Hathaway, but he's not willing to pay more to compete with other bidders.
Berkshire has lost out on a couple of major acquisitions in recent years because private equity firms are bidding aggressively with borrowed money, Buffett said. Berkshire doesn't borrow for acquisitions, and it has about $40 billion cash on hand. "Pricing is difficult, and money is cheap," he said.
Buffett said Wednesday that he is feeling good more than a month after finishing his prostate cancer treatments.
"I feel fine. I feel great," he said.
The 82-year-old said the treatments were tiring. He underwent six weeks of radiation treatments, and finished them in September.
He disclosed his cancer diagnosis in April and said his cancer was not considered life-threatening because it was caught early.