Let’s find out what’s been going on so far in 2021.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: All right, let’s do this thing then. Let’s talk a little bit about 2021. Is it off to a roar or calmly starting for you?
René Nelson: Commercial real estate, it is off to a roar, baby. The market is so good. The economy is healthy. Interest rates are super cheap. We had Isaac Grant on the last couple of shows. Money, interest rates and borrowing money, it is so inexpensive. I had a client yesterday get a quote at 2.75%.
Marcia Edwards: Wow. For commercial?
René Nelson: Yes.
Marcia Edwards: Wow. Okay.
René Nelson: Yes, for a commercial office.
Marcia Edwards: So it’s still going on it. You have not missed your window, people out there that have procrastinated. You’ve still got opportunities for money that’s cheap. So-
René Nelson: What are you seeing in residential?
Marcia Edwards: Well, there’s a lot of trends that I’ve seen. One thing that people are concerned about is whether there’s a real estate bubble out there. And I want to reassure them that I was listening to the Mortgage Bankers Association speaking, and they said that the average equity position for those who hold mortgages in the US is $174,000 right now.
René Nelson: Really?
Marcia Edwards: Yeah. So they’ve got some skin in the game. They’re not going to walk away from their houses easily. And if they don’t like what’s going on, they can refine now. So if their income’s been adjusted because one of the partners is out of work or something like that, they can adjust and they have good equity position to get a good, lower interest rates. So there’s some good things there. Also 38% of consumers are free and clear in their ownership of their residents, which I thought was fascinating. 38%.
So what’s happened is we haven’t been able to spend money and haven’t wanted to spend money on consumption. And because of that, we’ve got an advantage and some endurance. So forbearance, only about 25% of those who applied for forbearance with our mortgages asked for a little adjustment for a period of time so they could handle a transition on their income. 25% of those are the ones that are still in question. 75% have recovered or did not use a forbearance that they’ve gotten. So it’s fascinating, I think.
René Nelson: Let’s talk about that forbearance in the next program, because I’ve got some questions on whether it impacts your credit score and you may not know all the answers, but I’d just like to pick your brain on that.
Marcia Edwards: Sure. I’d be happy to talk about that. It’s a good topic and it’s something to do with some proactive attitude towards something that’s shifting your personal economics that you need to adjust and face, does have advantages. So facing it early is a good idea. Let’s talk more on that and the other trends in 2021 next program, hey René?
René Nelson: That sounds great.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.