C. Oregon home prices up again; how much varies widely

The housing market in Central Oregon continued its upward trend in the first half of 2016, but there were wide disparities in how much prices rose — or jumped, depending on the area, the region’s Realtors reported Tuesday.

The Central Oregon Association of Realtors said the median home price for the first half of 2016, compared to a year earlier, was up 9 percent in Bend, 10 percent in Redmond, 43 percent in Sisters, 6 percent in Sunriver, 23 percent in La Pine, 27 percent in Jefferson County and 11 percent in Crook County.

“Beyond the desirability of living in the area, a variety of factors are at a confluence to create a tight market with rapid home price increases,” the update stated.

“Low inventories, low interest rates, tightening lending standards, decreases in days on market and falling inventory lead to not just a housing affordability problem, but a housing accessibility problem,” the Realtors said.

While the median home prices in some areas are approaching pre-recession levels, the market conditions are also very different, they said.

The mortgage approval process remains drastically more stringent, resulting in high quality loans and low mortgage rates have kept payments to a lower percentage of income.

The Realtors said a healthy and balanced market will have a six month supply of homes. At the depth of the recession, Deschutes County had a 15-month supply, which has currently shrunk to just 3.6 months.

“Going forward, a more balanced supply of new inventory could help to level out prices and avoid a downturn,” the Realtors said.

Market statistics can be found on a monthly basis at http://www.coar.com/consumer-info/market-statistics