Finding a home in Central Oregon within the average buyer’s reach can be a challenge.

Just ask Aleksey Lavrinenko and his wife, Michaela Ciofreddi who have put in multiple offers in on several homes in Bend. Each time, they’ve been turned down. And each time they’ve adjusted their strategy.

At first, they thought they’d wait for mortgage rates to go down. But they’re still hovering at 7%. That’s when they landed on the idea that they should just buy the home they can afford the payment on and not think about the price.

They’ve put in four offers on homes around Bend, only to be turned down. They’ve prequalified for a mortgage and saved up for a downpayment, but the amount of homes for sale in their price range has been slim.

That changed a couple of weeks ago when their offer on a home was accepted.

“We’ve been watching the interest rates for a year and a half now and it’s been discouraging to see how high the rates have gotten,” Lavrinenko said. “We … decided to buy a home we can afford the payments on even if the rates are high.”

The desirability of Bend and Central Oregon have raised the median sales price of a single-family home in December to about $800,000 in Bend and $500,000 in Redmond, according to the Beacon Appraisal Group of Redmond.

That has made affordability an issue for many. Depending on the kind of loan, a home at the median sales price could mean a monthly income of about $9,300 a month, but there are many variables, said Tim Booher, SELCO Community Credit Union mortgage banker.

It’s just best for home buyers to consult with a mortgage lender before putting in an offer, Booher said.

Developing a strategy that overlooks price, but factors in monthly payment affordability is a good strategy, Booher said. Many in the industry don’t think interest rates will sink to the low rates of about 3% that were around just before and during the pandemic.

And while would-be homebuyers watch the interest rates, home prices in Central Oregon continue to inch upward.

“The big thing is the city is trying to help with affordable housing,” Booher said. “They’re pushing out in certain sections to create more affordable housing and create inventory. But the question is what’s affordable?

“Buyers can’t look at the price tags. We urge buyers to consider the house payment. If you can afford to buy and be comfortable with the payment, you should consider buying.”Interest rates to dropping to those low rates probably won’t happen soon. If it does, the low rates will create a buying frenzy, pushing up prices.

The business of home buying is a classic example of supply and demand. As long as supply remains low, homes will continue to sell, said Donnie Montagner, founder of Beacon Appraisal Group of Redmond.

“There is about a quarter to a third of the market that is priced at more than a million and those buyers are not influenced by mortgage interest rates,” Montagner said. “I don’t see the industry changing much in 2025. Bend is still a good investment.”

Interest rates and speed of new construction rule the market trends, said Lester Friedman, Premiere Property Group LLC managing principal broker. Housing projects that are coming online in 2025 spent several years in the building permit pipeline.

“Availability depends primarily on vacant land, appropriately located and zoned for residential construction and local governments willing and able to approve projects in a timely manner,” Friedman said. “When homes available to buy are in short supply, prices are driven by demand and, in the past four years, have led to periods of multiple offers driving prices up.”

That was the situation Lavrinenko and his wife found themselves in when they started looking four months ago. The couple always thought the wise strategy was to buy less than you can afford and work to pay off the mortgage. But that strategy has changed.

“Our mentality shifted to what is a monthly payment we can afford,” Lavrinenko said. “We have been saving for five years, living in less than optimal apartments so we can save for a downpayment.”

Their first home may not be a forever home, but one they can live in and grow into for 10 years, Lavrinenko said.

“We want to start a family soon so that will bring in other costs, and we’re factoring that into our budget,” Lavrinenko said. “This way if the market goes haywire, we have the ability to wait.”