Let’s talk about what’s going on in the marketplace. We’re turned the corner, and we’re well into the second quarter now, looking at the climate and what’s going on.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Let’s talk first about the first quarter and review what we’ve seen for activity. How is your market been in commercial investment?
Bob Nelson: Actually, it’s been very good. Very good, not necessarily because of any other factor than interest rates are still very, very low. The fed has decided not to mess with things, which then allows long-term mortgage lenders to offer long-term … Now, by long-term on a commercial loan, they’re only anticipating 10 years to a call, so that’s their exposure to inflation. They can offer a very long-term security to themselves with a low interest rate and even a fixed interest rate for that time period. If I can borrow money at 5% or less, that is very attractive. I can remember a time in 1973 when we borrowed money at 21%.
Marcia Edwards: It’s fascinating really.
Bob Nelson: It’s amazing.
Marcia Edwards: This has been a bonus. This has been … We did not expect it. We keep forecasting an increase in the rates, but stability is what the perception is meant to be as we especially go towards an election year. There’s a perception of stability, employment, really a robust economy.
Bob Nelson: Very robust. Of course there’s political issues that are involved with one side trying to kick a hole. You can’t kick a hole in the fact that it is such a robust economy with interest rates at such a rate that I can buy property with a very low fixed term interest rate, which takes the risk of the financial issues out of the equation. There’s still risk in buying real estate, but as long as you require good location and solid asset properly priced, then the financing risk has been removed from your ownership period.
Marcia Edwards: In residential real estate, we’re seeing this very similar market to last year. First quarter was a slow launch. People that were pausing and trying to understand what they should be doing this year. Now I think they’ve sprung into action, and we still have just less than one and a half months inventory in Eugene Springfield. That is a supply side problem. That, combined with competitive rates, makes a market very robust and definitely a seller’s advantage. We’ll talk more about what’s coming up in the next quarter next program.
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 5:30 on KPNW for the “Real Estate Today” radio show.
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