Wednesday, February 8, 2012

Sam Zell Discusses The Real Estate Market

Excellent discussion this morning with one of the greatest commercial real estate investors in history, Sam Zell.  He feels that the government is hurting the ability for homes to find a bottom with their continuous intervention:

On Residential Real Estate:
"Rather than let the elements of the business world take care of the problems, we basically stopped the process of creating market clearing. Had we allowed the market to clear without trying to stop reality...we would have a healthy housing market today. It's putting off facing up to reality," Zell said in describing the efforts to halt foreclosures. "The longer we avoid clearing the longer we're going to be living with this problem."

On Commercial Real Estate:
"Commercial real estate still has another couple years to get its act together," he said. "That's literally the point at which all of these extensions and other stuff get cleared out. Because otherwise you're going to have a commercial real estate market that doesn't work."

For more on the residential real estate market and where prices are moving in the years ahead, see the complete 2012 Real Estate Outlook.