Home prices in Bend continue to drop, but we’re still the second most overvalued real estate market in the country, according to the international economic analysis firm Global Insight.
In its report for the second quarter of 2008, Global Insight says that at a median of $285,000, homes in the Bend metro area are overvalued by 46.6%. Only the resort and casino town of Atlantic City, NJ, at 51.6%, is more overvalued.
Global Insight’s analysts determine “fair value”ย for homes on the basis of historical patterns, interest rates, income levels, population densities and other factors.
In most areas of the country, according to the report, home prices have fallen back to fair or nearly fair values. “The markets that are now overvalued are mainly located in the Northwestern portion of the United States (Washington, Oregon, and Utah),”ย the report says. “These areas have seen prices begin to decline only during the last year, and two areas, Honolulu, HI and Wenatchee, WA, have yet to see any price declines. Areas that had been extremely overvalued in late 2005 began to see prices decline toward the end of 2006 and early in 2007. These areas are now the ones with some of the largest price declines and the largest changes in their valuation levels.”
The median home price in Bend is down from $290,100 in the first quarter of this year and $314,800 in the second quarter of 2007, but it looks like we still have a bit of catching up to do.
This article appears in Sep 18-24, 2008.
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De Nile is not just a river in Egypt, it’s also a city in Oregon.
Gotta wonder about an outfit that thinks Utah is in the Northwest, though.
problem is! for 5-6 years bend was considered one of the “most desirable” places to live. realators and the press pushed the issue for the benifit of a few.builders went crazy investors flocked in, and banks loaned money to any person 18 and older and made offers to finance things for people with bad and zero credit.dont you think that were all to blame for believing everything were told. “a good investment” “instant equity” and “your approved” AND “we can do it”!!! how about a re-amoritization for a 40 year re-payment schedual on first time buyers and incentive for people to stick it out enstead of the cut and run we see when the ivestments START TO LOOK BAD how did so many get stroked on their new loans by not locking in a fixed rate? have we really been dumbed down to the degree that we dont seek finacial advice. or is your lender the (advisor) i hope not! we need to shift from banks to credit unions and investment firms of integrity!!! come on people get the money flowing, an economy is depending on your “shoe boxed” money. a bucket of water is not a stream!
“for 5-6 years bend was considered one of the “most desirable” places to live.”
Pure hype. I thought it was hilarious. Unfortunately the consequences are tragic for a lot of people. Of course as you say we can’t hold people blameless for making spectacularly dumb decisions.
“have we really been dumbed down to the degree that we dont seek finacial advice.”
Financial advisors won’t talk to you unless your portfolio is at least half a mill.
HBM writes: “Financial advisors won’t talk to you unless your portfolio is at least half a mill.”
I’ve been told there are fee-only advisers out there who will talk to pretty much anyone who has cash up-front. But … really, who needs ’em? Didn’t Warren Buffett say that any idiot can do what he’s done? He’s become even wealthier since he said it, but there are elements of truth still there.
It wasn’t rocket science to understand that interest-only mortgages and $479,000 narrow-lot-line shacks were really bad ideas.