Sam Zell & “The Donald” Call a Bottom for Residential Real Estate
Real estate legend Sam Zell believes that residential real estate is bottoming.
He believes the supply-demand ratio is causing the bottom to be formed as low interest rates, formation of new households, and an uptick in consumer confidence have increased demand. Zell is famous for having called tops and bottoms in the past. At one time his company was the largest holder of commercial property in the U.S. but now he owns none.
In a more general vane, Donald Trump agrees, having recently told the Associated Press that “real estate is a great investment right now”.
Locally, we believe prices have a ways to fall (10-15%) before bottoming. However, record low interest rates make this a great time to buy and hold local real estate for the long term.
Jeff and Steve