Bend Homes STILL "Extremely Overvalued" | The Wandering Eye

Coverage for Central Oregon, by Central Oregonians.

The Source Weekly has been here for you, keeping you in the know throughout the coronavirus pandemic.

We’ve delivered important updates and dispatches from a summer of racial unrest.

We’ve interviewed dozens of state and local political candidates to help you make an informed decision during election season.

And we’ve brought you 22 years of important news and feature reporting—along with all the events, happenings, food, drink and outdoors coverage you’ve come to know and love. We’re a newspaper for Central Oregon, by Central Oregonians, and it is and always has been free for readers.

If you appreciate our coverage, we invite you to spread the love and to join our growing membership program, Source Insider.
Support Us Here

Friday, December 5, 2008

Bend Homes STILL "Extremely Overvalued"

Although the real estate boom is now only a nostalgic memory, Bend remains one of the most overvalued housing markets in the country.

Posted By on Fri, Dec 5, 2008 at 10:35 AM

Although the real estate boom is now only a nostalgic memory, Bend remains one of the most overvalued housing markets in the country.

That's the word from the prestigious economic analysis and forecasting company Global Insight, which released its third-quarter report on home prices this week.

Prices have been falling all across the country, according to Global Insight's press release, to the point where the US housing market as a whole is now undervalued by 5.7%. But the Pacific Northwest in general, and Deschutes County in particular, apparently haven't gotten the word yet.

"While the contraction in residential real estate value is national in scope, it is most severe in the Southeast and Southwest, areas which were among the most overvalued in the country three years ago," the press release says. "According to the third-quarter analysis, extreme overvaluation is now 'essentially nonexistent' - only three metro areas met the definition of extreme overvaluation, down from a peak of 52 metro areas in 2005. Only the Pacific Northwest remains overvalued."

The three "extremely overvalued" areas are Atlantic City, NJ, St. George, UT and good ol' Bend, OR.

Bend's current median household income is about $56,000 and the median home price is $292,000, according to the GoBend Realty site. Using the rule of thumb that a family can afford a home that costs three times its income, the median price in Bend should be in the neighborhood of $168,000.

Why are home prices staying so inflated in Bend even though virtually nothing is selling? The only explanation The Eye can think of is that a lot of people here haven't yet figured out that the bubble has burst and are still pricing their homes unrealistically high. They're still dreaming that some rich Californian will show up and pay half a million dollars for their $150,000 house.

A bit less of that famous Bend smiley-face optimism and a bit more healthy realism might help us get out of this mess sooner.

Pin It

Comments (20)

Showing 1-20 of 20

Add a comment

Subscribe to this thread:
Showing 1-20 of 20

Add a comment

Newsletter Signup

Get Central Oregon daily news
directly in your inbox

More by The Source Staff

Latest in The Wandering Eye

  • Moonshine Magic in Bend Still on the Down Low

    • Aug 9, 2012
    Get ready for our great close-up on the home distilling community out next week in our "Best of" issue. We interviewed a mixed bag of legal and anarchist distillers in Bend to find out why distilling is so very, very against the law in one's home. More »
  • The Eye Wanders Off Into the Sunset

    • Dec 26, 2010
    I’m really sorry to break the bad news to them during this season of peace and goodwill, but after this week the right-wingers in Bend and vicinity won’t have The Wandering Eye to kick around anymore. The decision to stop writing this blog was my own, and it was prompted by several factors. More »
  • DADT, Gay-Bashing and the "Icky-ness" Factor

    • Dec 19, 2010
    For the past week or so, “Zeo” of the NW Republican blog has had his jock strap in a knot over the prospect of Congress repealing the military’s “Don’t Ask Don’t Tell” rule. To hear Zeo tell it, if DADT is repealed and gays are allowed to serve openly in the US military it will mean the end not only of our armed forces but of America, its economic system and civilization in general. More »
  • More »

© 2020 LAY IT OUT INC | 704 NW GEORGIA AVE, BEND, OREGON 97703  |   Privacy Policy

Website powered by Foundation