BEND, OR -- According to the Federal Housing Finance Agency, Central Oregon lost some real estate value last quarter, but Fred Johnson of Duke Warner Realty says those results are only a small part of the big picture. "The market continues to be fairly strong. Throughout the country, property prices are going up and the West is really far outpacing the rest of the country."
Johnson says Oregon is still in the top ten states with the greatest home price appreciation in the nation. "In the Bend market, for the median price point, it rose between the third quarter of 2015 to 2016, it rose almost $40,000. Between 2016 and 2017, it rose $30,000."
The FHFA report says the Bend-Redmond Metro area, which ranked number 9 in the second quarter on the list of Top 20 Home Price Climbers, dropped to a number 52 ranking in the third quarter.
Johnson says, "The one thing that everybody would like to see when they're purchasing magazines and newspapers is they'd like to see some good news, and the hint there is that maybe things aren't moving as briskly in Bend and Redmond as they have, but the reality is we look forward. Housing prices probably aren't going down any time in the near future, and for that, there are a number of different reasons."
He also says seeing a report with a statistic like that can be confusing, and it actually helps to view the real estate market as a whole. "I got the most recent Beacon Report and tried to isolate the third quarter sales information in both the Bend and Redmond market[s], and the appreciation has continued to move, the number of sales has continued to move, and there's not really a huge differential, year over year, from the previous year."
Johnson says that while materials pricing and labor costs can affect home price appreciation, in Bend and Redmond, some of that fluctuation is offset by the area's high land value.