Data and graphics submitted by Central Oregon Association of REALTORS®

The Central Oregon real estate industry experienced large increases in median sale prices in the first quarter of 2015 compared to the first quarter of 2014, particularly for bare land and large residential properties.

In Bend, the price jumps were across the board. The median sales price increased 25 percent for land sales from the first quarter of 2014 compared to the first quarter in 2015. The median sales price was $190,000. More significantly, the first quarter of 2015 represents more than a 200 percent increase over the first quarter of 2013 when the median land sale price was just $88,000.

Residential lots under one acre saw a 17.5 percent increase from the first quarter of 2014 to the first quarter of 2015, ending at a median sales price of $315,000. Lots one acre or more rose 8.64 percent to $440,000. The condo and townhome market saw the most dramatic gains with the median sales price rising 36.39 percent to $304,500.

In Redmond, land values saw a similar increase, rising 20.66% with a median price of $92,000. Again, this represents a more than 200 percent increase from the first quarter of 2013 when land prices were at a median sales price of $37,500.

On residential lots less than one acre, Redmond saw a 16.69% increase to a median sales price of $209,974. Residential properties on more than one acre in Redmond saw a relatively modest increase of 3.08 percent to $344,788.

Sisters, however, has seen the greatest increases in residential listings that are under an acre, rising 58.18 percent to $295,000.

In Jefferson County, the most significant change was in residential lots of more than one acre, rising 22.89 percent to $255,000. Crook County experienced a similar trend with an increase in residential land over one acre rising 17.65 percent to $340,000. Residential properties under one acre also saw an increase of 21 percent to $142,900. This represents almost a 100 percent increase over the first quarter of 2013 when the median prices were at $77,500. La Pine followed the trend with increases in residential land over one acre, increasing 23% to $165,000.

“Clearly, the dramatic median price increases in the first quarter of 2015 is a direct reflection of our high demands and tight inventories throughout Central Oregon,” said Scott Halligan, president of the Central Oregon Association of REALTORS. ”As we move into the summer months, historically inventory levels increase but to what extent and will that in fact, balance the supply and demand within the market is the tough question. In addition, both nationally and locally, it is our hope that an improving economy focused on job creation and growth, controlled interest rates and an easing of credit availability will enable renters and first-time homebuyers to come back into the marketplace.”

Overall, the market across the tri-county area for bare land and lots over one acre has seen the largest gains in value from the first quarter of 2014 to the first quarter of 2015. With the availability of lots in Bend dramatically decreasing until the urban growth boundary is expanded, the trend of land prices increasing in Bend may continue, with other areas experiencing similar trends as inventory falls.