Monday, August 3, 2009

Early Edition:Real Estate Check-up

Real estate and media magnate Sam Zell,Chairman of Equity Group Investments,says that basically we're moving to a position where single family home prices stop going down.It's the key to everything.That's where consumption comes from.Once housing stabilizes,it will stabilize the rest of the consumer sector.They must have confidence in their biggest asset.There will be a slow improvement in residential real estate this fall,Mr.Zell predicted.
Sam Zell described the commercial real estate sector as being underwater.He doesn't think we'll see any foreclosures of institutional assets until 2-3 years from now,when they can no longer cover.Every day you don't sell,you buy,Mr.Zell observed.Companies are,to a large extent,in pretty good shape.
Mr.Zell,a diminutive man with a goatee,also owns Tribune Company,parent of The Chicago Tribune and The Los Angeles Times,as well as Newsday and 23 T.V. stations.I don't have emotional attachment to assets,Mr.Zell stated-just to my family.

1 comment:

CoachingByPeter said...

Any investment can be overpriced no matter how great its fundamental value or how secure its prospects. In the absence of a more thorough analysis, it's reasonable to suspect that investments in a market that has been rising for a long time are overpriced. In itself that guideline isn't a signal to sell, it is a signal to make a closer examination.