Sam Zell calls bottom for residential real estate, says GM is done

Billionaire real estate investor Sam Zell called a bottom to the residential real estate market on Bloomberg TV this morning. He thinks by summer the "affordability factor" will make residential real estate "very attractive," although in his view commercial real estate is not close to the bottom. He was generally positive about what the Obama administration is doing, admitted making a mistake in buying the Tribune Company, and thinks Citigroup (C) should be saved, but GM (GM) should go bankrupt.

As far as residential real estate is concerned, Zell expects a significant number of the foreclosures will be absorbed. Generally, he said the market was "flattening out" after "extraordinary drops" from November to January. He thinks we're moving from depression valuations to recession evaluations, essentially "going from the basement to the first floor."