We’ve been talking in generalities about a slowing market, but we’ve really got to encourage you to look at your circumstance, your corner of the world, and specifically the market you’re in. You’re in a micro market, a different type of property, maybe a different type of investment, different price point, or different area than what’s the average, or the usual.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Bob Nelson: It’s an interesting point, because that applies to my end of those, for sure. We talked about a market. Well, is that dealing with apartments, or retail, or is that dealing with office space? Real estate isn’t just real estate. It has sectors, and each food group, or each sector has its own performance standard that’s occurring, and then you take various neighborhoods, and then various regions. Each of those perform different from the other.
Marcia Edwards: That’s right. For example, just before coming to the program today, I was looking at the Coburg area, the town of Coburg and the surrounding area, the 4J school district up there. And what I’m seeing is, there has been 26 sales, and two have been over $700,000. There is inventory up there that’s over $700,000, but they’re just not moving. So the price point, specifically, has slowed much more than the usual, typical market price points.
Bob Nelson: How about the inventory that’s coming on. How much inventory has been added, relative to the 26 sales that have occurred?
Marcia Edwards: There have been twice as many homes put up for sale first quarter 2019 versus 2018. So the inventory is robust. There are more choices for buyers in that area, specifically. And then when you look at the inventory that has moved, you see that 25% less sales have occurred. So, buyers are going to start to see some opportunities. Now, we have new construction up there, so there is that inventory where there is some relief happening right now.
Bob Nelson: Okay. Where there is more coming on than necessarily people standing about to take care of that, so that does create an abundance of inventory. Is that true for all of your Eugene/Springfield, that there’s enough robust building that it’s overtaking the demand?
Marcia Edwards: Our builders are privatizing. They’re kind of doing custom builds now, and they are making sure that they are not holding land. As the market slows, they don’t want to hold a lot of land, when it slows down. They’re going to be covering the expense of that land during the interim period, while the market recovers. So, you’ll see less volume being put out when we need more volume from builders. Not their fault. It’s got to make sense that they’re not going to be there.
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.
Leave a Reply