Question, are we entering a bubble? Let’s talk about it. Thanks for tuning in to the Real Estate Today podcast.
I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments. And I’m Marcia Edwards, residential broker with Windermere Real Estate.
Marcia Edwards: We’ve been talking about the market place today. There is an adjustment going on. Is it a bubble? Is the question, it’s always the case. Is that what you’re seeing, Bob?
Bob Nelson: A little bit. It’s an interesting process. The stuff that I do, the commercial stuff, the passive income property things, it’s still a hot and heavy market, and if you see what you want, you better be nailing that thing down quickly ’cause there’s a herd right behind you that will if you don’t, and it’s kinda like ready, fire, and then figure out what you’ve hit and aim.
Marcia Edwards: Well that makes sense in investment because the opportunity’s still there in real estate and unique to real estate. In residential, what I’m seeing is a, well, relatively still a very, very strong sellers market as well.
Bob Nelson: Okay. Well it’s an interesting process because frankly, people say, “Well gee, the interest rates are increasing.” Yeah, from four to five. I mean, I could recall when it was 21 and a half percent first mortgage prime, Jimmy Carter era. I was practicing then, and real estate still was being conducted but on a very selective basis.
Marcia Edwards: So you have to look at the whole opportunity of your purchase and your sale, and actually this will bring some relief for sellers who plan on purchasing out of the sale.
Bob Nelson: Well, and it’s an interesting game because at what point do I stand back and say, “Well, if I wait six months or if I wait a year, things are going to be different.” Yeah, well you’ve also wasted a one year period of time where you could’ve enjoyed the benefits at whatever level they would’ve been. You would’ve been able to enjoy those benefits and now you have to try to make up for it one year later, and that’s gonna be tough to do.
Marcia Edwards: So if you decide to jump now, what I’d suggest and encourage is look at the current activity. That is what properties are moving toward pending sale, and how they are moving, not what is closed in the last three months. Often in the media we hear the stats for housing growth enhancing sales, but it’s really old information. The decision was made at the earliest 45 days prior to that print. So the activity is really what has sold in the last couple weeks and how are consumers moving today?
Bob Nelson: Well also it’s difficult to get your hands, if you’re a consumer, how do you get your hands on that information? You get to Marcia for residential. She’s keeping her eye on exactly what’s happening. If it’s an income property you come to me. I’m watching that like a hawk. I’m in it every day.
Marcia Edwards: It’s what we do. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: And I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.