I thought this interview with Richard LeFrak had a lot of truth in it…

The take-aways are:

• There’s a glut of single-family homes across the nation. Values are still 10 to 15% higher than they should be and are likely to continue to decline.
• Rental properties are doing very well right now since people are afraid of being trapped in a bad investment if they buy, so they’re renting.
• A lot depends on the City. If the City has job growth its real estate market is fine (e.g. Washington D.C.)
• Commercial real may be going back into a bubble. Low interest rates are what’s spurring the investment.
• New York City is doing pretty well.