INSIDE
HOLIDAY FARE FROM FIELD AND STREAM |
OUTDOORS & REC, B1
WEEKEND EDITION
December 4, 2021
$1.50
HOUSING MARKET
UNION COUNTY
MERA forest
management
likely to
proceed
A RETURN TO NORMAL?
White hot sellers market
cools to red hot, but
affordable housing still is
out of reach for many
Commissioners meeting
draws feedback from
public about forest
management plans
By DICK MASON and
DAVIS CARBAUGH
By DAVIS CARBAUGH
The Observer
The Observer
L
A GRANDE — The year 2021 has
been unprecedented in many ways,
including for those looking to buy
a house.
Supply-chain issues and infl a-
tion have created challenges for
people wanting to buy or build, while low
mortgage interest rates have spurred a
fast-moving, competitive market, driving
up prices and making it a good time to
sell. There is uncertainty across the board
as to what is to come in 2022, and local
real estate agents are hoping for a more
mixed market.
LA GRANDE— A controver-
sial forest management project
in the Red Apple portion of the
Mount Emily Recreation Area
may go forward this winter.
Union County
Parks Coordinator
Sean Chambers
and Union County
forestry consul-
tant Chuck Sarrett
were given a vote
Anderes
of confi dence by
the Union County
commissioners
during a meeting on
Wednesday, Dec. 1.
Chambers and Sar-
rett are developing
a plan for the forest
Beverage
management project
at the 300-acre Red
Apple site, MERA’s
most popular loca-
tion for hiking and
mountain biking.
“If they want to
go
forward they can.
Scarfo
We trust them and
their decisions. That is why they
are in the positions they are in,”
said Matt Scarfo, chair of the
Union County Board of Com-
missioners, following a meeting
where a number of people
expressed concern that the poten-
tial Red Apple project could do
signifi cant damage to its trails
and rob the area of valuable trees.
Chambers, stressing that no
timeline has been set, said he
hopes most of the work can be
done this winter.
“The intent is to make this a
winter project,” he said.
Inventory at record lows
Across the nation, the total inventory
of houses has reached record lows, with
listed units fl ying off the market. In La
Grande, Federal Reserve Economic Data
showed that in June, houses stayed on the
market for an average of 36.5 days. While
that average was up to 53 days in October,
the city still is in a seller’s market.
The COVID-19 pandemic, sup-
ply-chain disruptions and labor short-
ages are some of the factors local real
estate agents see as impacts on the current
housing market.
“I don’t know if it’s all necessarily
from COVID, but inventory has defi nitely
been more scarce. It’s been much harder
for buyers in the last year, year-and-a-
half.” said Anna Goodman, principal
broker at Eagle Cap Realty in La Grande.
“At some point it’s going to level out, but
the supply shortage is playing a big role.”
Price hikes in lumber led to increases
in housing prices earlier in the year, and
there’s been a recent spike in the cost of
other construction items, including con-
crete and paint. Lumber was nearly three
times its typical price at the peak of the
increase but during the past year prices
have steadily fallen back to a more normal
price point.
One major question looming over
the housing market moving into 2022 is
whether supply chain shortages will con-
tinue to impact homebuilders.
For John Howard of John J. Howard
County expresses
confi dence in project
Chambers said doing most of
the work in the winter with snow
cover and frozen ground would
reduce damage done by crews.
The goals of the project,
according to Union County Com-
missioner Paul Anderes, is to
improve forest health, promote
See, MERA/Page A5
Alex Wittwer/The Observer
A sign marks a home for sale in La Grande on Friday, Nov. 26, 2021. Real estate agents are hoping for
a more balanced market coming into 2022, as opposed to the erratic seller’s market that made short
work of the housing inventory.
& Associates Real Estate in La Grande,
infl ation rates are the biggest thing buyers
should keep an eye on in the coming year.
“The infl ation makes me a little ner-
vous going into next year,” he said. “The
cost of goods — and so many supplies are
limited — could impact the market a bit.”
Labor shortages and infl ation increases
play a major role, but it is uncertain what
the outlook is moving forward, with
increases in infl ation caused from sup-
ply-chain setbacks leading to increases in
mortgage rates.
“If the interest gets up to four-and-
a-half, pushing 5%, that’s going to put
a damper on the market,” Howard said.
“Hopefully the supply will be increased
and that will ease the infl ation.”
Increasing infl ation and mortgage
interest rates — the average interest on
a 30-year fi xed mortgage rate currently
stands around 3% — could stem the fl ow
of motivated buyers and bring down
asking prices.
Heightened infl ation rates have a large
impact on the cost of average 30-year
fi xed mortgages, with the average interest
on a 30-year fi xed mortgage rate standing
around 3%. A continued increase could
play a big role in the future of the housing
market, as heightened monthly payments
could stem the fl ow of motivated buyers
and bring down asking prices.
Buyers outnumber sellers
“It’s something that I haven’t quite
wrapped my head around — the prices,”
said Holly Walker of RE/MAX in La
Grande. “I would have never imagined
when I started this business 26 years ago
that I would see this level of interest.”
The high demand from buyers drove
signifi cant hikes in asking prices this year.
Buyers have faced bidding wars and have
often overpaid for listings over the past
year, as they sought to take advantage of
the low interest rates.
According to Federal Reserve Eco-
nomic Data, the median listing price in
La Grande reached an all-time high of
$385,000 in May. From December 2020
to February 2021, the median listing price
in La Grande jumped from $232,450 to
$339,000. That median price has lev-
eled out since, coming in at $285,000 in
October. Across the country, the median
price of a new house sold increased from
$344,400 in September 2020 to $408,800
in September 2021.
“During the summer and spring there
was a lot of competitiveness for proper-
ties,” Howard said. “Some people paid
over value, but they just wanted that par-
ticular house and were willing to go over
and above other buyers.”
Walker, Howard and Goodman all
noted the competitive nature of the
housing market has been noticeable
locally during the last year, with the ratio
of buyers to sellers at times resulting in
bidding wars. Howard noted that this
could cool off a bit in the coming year,
which has started to take form this fall.
“That part is starting to pull back.
See, Housing/Page A5
Chief responds to downtown business concerns
By DAVIS CARBAUGH
The Observer
LA GRANDE — La Grande
city offi cials are looking at ways to
address issues of crime and home-
lessness in the downtown area.
Police Chief Gary Bell issued a
letter to downtown merchants and
community partners on Monday,
Nov. 29, pointing out key issues
and how the police department
is working to improve the area.
The letter came after the situation
was discussed at the November
city council meeting, prompting
an ongoing discussion with local
input.
“Our hope is that this may
serve to reassure you and your
employees that we do hear you
and that you have my personal
commitment, and that of the city
of La Grande and the La Grande
Police Department, to do all we
can within our resource limita-
tions to provide for the safety and
felt security within our downtown
and our community,” Bell wrote
in the letter.
At the La Grande City Council
meeting on Nov. 3, Councilor
John Bozarth raised the issue of
loitering at Max Square.
“It’s an eyesore for the com-
munity,” he said at the time.
“There’s been a lot of problems
there.”
The issues
Bell’s letter is in response to
the discussion that ensued after
Bozarth’s comments, as well as a
memo of concern from a number
of downtown businesses and res-
idents who reported occurrences
WEATHER
INDEX
Classified ......B2
Comics ...........B5
Crossword ....B2
Dear Abby ....B6
TUESDAY
See, Letter/Page A5
Horoscope ....B2
Lottery ...........A2
Obituaries .....A3
Opinion .........A4
Outdoors ......B1
Sports ............A7
Sudoku ..........B5
Weather ........B6
Alex Wittwer/The Observer
Dakota Walker, who grew up in Union and graduated in 1996, is among a hand-
ful of transients who often stay at Max Square in La Grande during the day when
shelters are unavailable. City council member John Bozarth raised the issue of
loitering in Max Square in a council meeting on Wednesday, Nov. 3, 2021, calling
the situation an “eyesore for the community.” The comments sparked a discussion
that led to Police Chief Gary Bell penning a letter regarding the issue.
Full forecast on the back of B section
Tonight
Sunday
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38/29
Rain and snow
Colder
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Issue 142
2 sections, 14 pages
La Grande, Oregon
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