I knew Bend was behind the curve when it came to the real estate market (for starters) but what I found in today’s paper was astounding.
The problems with teaser-rate mortgages have been all over the press lately. In fact, the press has been predicting problems with these types of loans for quite a while now.
Showing great tact and temperance, Buena Vista Custom Homes ran a full page ad in today’s Bulletin publicizing their teaser rates for homes in the company’s Forum Meadows subdivision (east of Costco). “Buy a $443,950 home for $645 per month!!! (Regularly $2,206 per month.)”
Considering the city’s median household income of $40,857 ($3,405 per month), how many locals do you figure can afford a $645 monthly payment? I’d guess that the vast majority of people living here could afford it. How many do you figure could afford the the payment after it triples? (Hint: it would take roughly double the median income to afford the higher payment.)
I’ve heard plenty of people around town call Bend the next Aspen. I just hope we’re not the next Greeley.
LIV