Although median prices for single family homes in Central Oregon peaked in 2006 the market’s momentum had shifted to the downside much earlier. And the tremendous loss of home sales revenue in the ensuing years has rippled throught the regional economy.
The effects have spread to builders, brokers, lenders, title and escrow companies and others more directly involved in real estate transactions to retailers in such areas as building products and home furnishings. Cities and counties saw declining revenue from fees and taxes while charities and other nonprofit groups suffered from a contraction in giving.
For the five years from 2005 through 2010 more than $888 million in single family home sales was subtracted from the economy. Considering that most real estate commissions are at least 5%, the loss to brokers alone could be nearly $45 million.
In the boom of mid-decade, total sales in the seven combined key regional sub-markets--with Bend
The following year unit sales dropped 22.52% to 3,966 on a volume decline of 6.67% to $1,415,032,725 while the median price trend continued upward by 25.87%, from $246,000 to $309,000 by the close of 2006.
A major shift in market momentum was underway but pricing had not yet reflected the trend.
Median prices continued to ignore the prevailing market direction by notching another high in 2007 at $316,663 as the number of single family sales again slipped, by 34% to 2,614 from 2006. Volume was off another 28.89% in 2007 to $1,006,211,366.
But from 2007 to 2008 the controlling forces behind home pricing appear to have “gotten the memo.” Median prices took a 17.89% dive -- the first yearly decline in a decade – to $260,000. The pricing trend has dropped each year since then, to a median of $180,000 in 2009 and $160,000 in the most recent year.
Although unit sales and dollar volume were also down from 2007 to 2008, by 25.44% to 1,949 homes sold and 37.58% to $628,116,463 in total dollars, there was a notable change in the trend starting in 2009 and continuing into 2010. The number of homes sold rose a dramatic 38.38% to 2,697 in 2009 and another 11.16% in 2010. In the same period sales volume held up in a narrow range for $630,451,463 in 2009 and $627,518,751 in 2010.
