By Tracy Dau, November 18, 2020
Our buyers continually ask – “Should I offer gobs of money over asking to get this house when we might be in a bubble?”…. This is such a difficult question for Chris and I to answer. We send our buyers the comps for the area, add up the homes recent improvements, try to make an educated ‘stab’ at where we think the bidding war will go, than tell our clients to cap their offer price and walk away. “Don’t be an idiot and bid up a house that isn’t worth it,” is what I often say to buyers. Wait for the market to soften– if you can. Or be ready to hunt for a longer period of time so we can find something that makes sense. We don’t want our clients to buy a home that needs loads of cash for improvement when our clients won’t have money left over to fix their problems.
But should we wait until 2021? According to economists and market watchers, in the real estate sector prices keep climbing month-over-month, even in the face of an ongoing economic recession. We are feeling it big time in Oregon. From the many articles that I have read about our current market in the state of a pandemic, I thought you might like to hear from the pro’s.
Here real estate economists about the next few months:
- This strong buyer activity points to a fall & winter housing market that is more active than normal.
- Mortgage delinquencies and foreclosures increased in August and October 2020, respectively. 1.2% of loans are at least 150 days past due according to CoreLogic. At the moment, the moratoriums on foreclosure have kept lenders from being able to even start their processing of defaults. It will be well into 2021 before you will see a spike in single-family and condo foreclosures which may began to flood the market and help to soften it.
- Homes are being sold at an increasingly fast pace when compared to the previous year. As new inventory comes on to the market. they are quickly taken out of the market from heavy buyer competition. Therefore, housing units are still in short supply with unsold inventory sitting at a 2.7-month supply at the current sales pace.
- Housing prices have surged to new records due to very strong demand but low mortgage rates are helping buyers offset this increased cost. Mortgage rates for housing are anticipated to stay at near 3% over the next 18 months which will keep things easier for buyers.
Sounds to me like we will continue to go UP for another year. Who really knows. Chris and I are here for you should you wish to take the buyer plunge! Just give us a ring and we will be sure to talk you out of buying a shitty house. For real.
Tracy Dau
Broker | Earth Advantage | OR
She/Her
When you meet Tracy Dau, it doesn’t take long to realize where her true passions lie.
She loves houses and loves matching her clients with the place that’s perfect for them. Ask her clients and they’ll tell you she’s a whirlwind of energy, a juggler of projects, a creative force, a good listener and a tireless advocate. She comes to the job with a vision for what’s possible and the background to make that happen.
Maybe it’s because she grew up in the breathtaking town of Juneau Alaska, where it rains 250 days a year. It’s the kind of place where you either give into gloomy weather or dig deep and find the will to preserve. Maybe it’s because her folks instilled in her the drive to succeed.
For the past sixteen years she has gutted and restored many houses, using any opportunity to work with her hands. Blending her formal training as a fine artist and designer with her experience as a builder, these old-house remodels have become her creative canvas. Her time as a product developer and architectural consultant at Rejuvenation House Parts introduced her to a community of like-minded folks who encouraged her to become a REALTOR®.
She is drawn to vintage homes. The artist in her is drawn to their detail, the builder in her to their craftsmanship. Their charm and imperfections make them all the more fascinating and soulful.
That’s what drew her to her first home. Stripped of all her painted-lady features, she sat sadly on a corner lot in SE Portland waiting to be loved and cared for. She had a yard full of shopping carts, a tree that had grown through her facade, motor-oil soaked mattresses and a basement full of the neighbor’s missing car parts, and yet, in spite of this her husband Nate and Tracy bought and fixed her up. This renovation lead to the next house-love-affair, followed by another and another. It only made sense to apply this knowledge and the valuable lessons learned along the way to help others looking to buy or improve their own homes.
Which brings me to why she became a REALTOR®.
Tracy chose this job because she is passionate about houses and loves the chance to develop relationships with her clients. When you choose to work with Tracy, she will advocate for your best interests, guide you through the home buying process and protect you from the stressful moments as they inevitably arise. She will advise you every step of the way to enable you to make good decisions, stay centered and reach your goals. Even after your transaction has come to an end, Tracy is still available to
answer your questions and help with your home projects.
When she is not working, she enjoys spending time with her family and being outdoors. Her hobbies include teaching her children, Lander and Olivia, about nature, hunting for sea creatures, spotting birds, drinking bourbon in the winter and gin in the summer, eating chocolate and traveling to warm destinations.
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- T: 971-275-0387
- tdau@livingroomre.com
