Speaking at the Mortgage Bankers Association of New York luncheon on Wednesday, Trump hailed the overall real estate market today, even as he pointed to a few flaws. "I think the market has been incredible," he said.

One high point, Trump explained, is the for-sale apartment market. He contended the condo market is the best the industry has seen it in a while--even before Sept. 11, 2001 when the market was good, but not great. The upswing in the market could be traced back to the low interest rates--a trend he sees continuing especially with the November presidential election. "In my opinion it is interest-rate driven, and a little New York-driven," he added. On the other hand, the residential rental market has not faired so well. Currently, it costs less to own an apartment than to rent, Trump said. "If interest rates go up perhaps it all ends," he explained. "This business is so interest-rate driven that if interest rates go up, I think it will be good for the rental market."

However, like other real estate professionals, Trump does not have a positive view of the office market. "Office buildings go for numbers that are crazy, but the rents aren't there," he said. In the end, that dichotomy could hit building owners hard when the tax bills arrive in the mail. "The buildings are being assessed at higher money, but the tenants aren't there," Trump added.