Good, balanced article on the local economy in the Bulletin today. I was especially glad to see Tim Duy’s thoughts on real estate and the local economy reported accurately:
“Once they pop, bubbles tend not to be reignited,” Duy said. “People have to come to grips with this.”
Median home prices in Bend dropped from $347,750 in the first quarter of 2007 to $306,500 in the first quarter of this year, a 12 percent decrease, according to data provided by the Central Oregon Association of Realtors.
In April, the median home price in Bend dropped to $270,000, 26 percent less than April 2007, according to a report from the Bend-based Bratton Appraisal Group, which tracks home statistics monthly.
Tighter lending standards and the county’s median income levels will bring home prices more in line with the area’s income, Duy said.
Median home prices could shed another $70,000 over the next year, Duy predicted.
“If the question is, When do we return to 2005? The answer is, Not for years, if ever,” he said. “I would not be shocked to see Bend’s median prices go down to $200,000 in the next year.”
I talked with Tim over two months ago to clarify his opinions which had been seemingly misrepresented at the time:[youtube http://www.youtube.com/watch?v=mUhPAkbeBs8&hl=en](Click through for video)
Index shows more softening in economy