The next podcast for buying and selling today is here!
Looking to sell your property? Today Marcia and I talk about what the market looks like for your real estate.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Buying & Selling in the Current Market – Part 6
René Nelson: So Marcia, I have a question. My neighbor is selling down the street and I drive by that For Sale sign every day, and I think, “Huh, I wonder what they’re selling their house for.” I live in a two-story house. Maybe I want to move to a single level, but I hear that prices are overinflated and there’s no inventory on the market. If I were to call you, what advice and strategy would you give to me as a seller?
Marcia Edwards: I would say it sounds like you’re implying that this is a bubble and it will pop pretty soon, and maybe there will be foreclosures or price discounts. I don’t see that in this market. This is an inventory problem that runs deep and long and wide, and even if we have interest rates pop up a little bit, it’s still not going to solve it. It’ll soften the demand slightly, but softening the demand slightly is relative, and we’ve got a huge demand. So it’s really not going to solve the problem of a balance.
In addition, the equity position, if I lost my job today, I started tail spinning and getting behind in payments, I could sell my home and recover without going to foreclosure. So the equity position we’ve gained over the last few years, and just now, so far, year to date, have cushioned the blow of forbearance and foreclosure possibilities.
René Nelson: Wow. That’s interesting. I know you also mentioned that you’re just not seeing those big subdivision, where builders go in and build all those spec homes like we’ve seen in years past.
Marcia Edwards: Yeah, I think at this market in Lane County and in the state of Oregon, we’re running into a wall in land use, and that this is exacerbating it locally. So it was nice when we didn’t have too much extra supply to absorb during the last recession. However, that also can backfire, because we don’t have enough to absorb the demand now, and we can’t solve that. Those DH Hortons, those big developers, have tried this market and they can’t make it work, because of affordability. Labor and workforce, supplies and materials, access to land with a urban growth boundaries being so restrictive, prevents the success of affordable housing.
René Nelson: That makes sense. So if someone wants to sell, they really need to get in contact with you and find out what they want to go into first. Just like if they were going to sell and do a 1031 exchange, you want to find what you’re going to go into before you sell it. Same situation for your own personal residence?
Marcia Edwards: Yeah, you want to just see if you’re reasonable in your expectation. See what sold recently similar to what you’re expecting to buy. Make sure it’s within your price range, and remember that you’re chasing the market a little bit. It has appreciated since it’s closed, as well.
René Nelson: Yeah, and you think this will last through at least 2022?
Marcia Edwards: I do. Even if interest rates take a bump, which I do anticipate as well.
If you’re a seller trying to make the most from your investment property, René is here to help. Schedule a 15-minute discovery call to better understand your investments and the market today.
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