The Redmond spokesman., April 26, 2022, Page 11, Image 11

its upward momentum.
In summation: It’s up, up, up — for both wages and costs.
Th e theory off ers no ideas how to slow the spiral down, Runberg said. Th e Federal Reserve will
continue to raise interest rates, which increases the cost of borrowing in order to help tamp down
demand. But that’s risky, said Runberg, and raises rates too quickly on a fast-growing economy can
send it into a downward spiral that can have damaging long-lasting eff ects.
Low inventory, rising cost of homes
One of the major dangers to the long-term Redmond economy is the ability of local wage earn-
ers to aff ord housing.
By March 2022, the median single-family home price in Redmond reached a record $520,000,
according to the Beacon Report, which is produced by the Beacon Appraisal Group to track sin-
gle-family home prices in Central Oregon.
In all markets, the number of days on the market were less than two weeks, with homes in Sis-
ters averaging two days before being sold. Low inventories are tied to demand, Donnie Montagner
said.
“Th is is how robust the market is,” Montagner said. “Th e only way to temper that is rising inter-
est rates and raising the inventory levels. Th e inventory is a key part of this. As long as we’re hover-
ing around a half-month’s supply the price trajectory will continue to go up.”
In Redmond, the $520,000 median single-family sales price is $37,000 higher than it was in Feb-
ruary. A year ago, the median sales price of a single-family home in Redmond was $373,000.
In March, there were 64 Redmond single-family homes that sold using a conventional mortgage
and 21 with cash, according to the report.
An increase in interest rates for conventional mortgages can help tamp down demand, but it can
also signifi cantly increase prices for consumers.
A $500,000 home purchased at interest rate of 2.75 percent would have a monthly mortgage
payment of $2,307. Th at same home bought just six months later, when its cost rose to $550,000
and the interest rate rose to 5 percent, would have a monthly mortgage of $3,172. Th at’s a 33 per-
cent increase — much faster than wages are rising.
“Th at’s quickly pricing a lot of households out of the market,” Runberg said.
Mosaic Medical
Construction crews started installing the roof on the northeast corner of the new health and
wellness campus in Madras. The campus is expected to open in April and will house Jeff erson
County Public Health and Mosaic Medical.
JOE A. LOCHNER INSURANCE
AGENCY, INC.
123 SW 5th Street, Redmond
541-548-6023 • 541-548-6024 Fax
Agent Joe Lochner and staff are very grateful to their customers for making the
last 24 years of this State Farm Agency a great success.
Joe, Demi, Barbara, and Kim at this Redmond State Farm Insurance Agency
together bring over 50 years of insurance experience and look forward to
providing the “Good Neighbor” service that Central Oregon customers have
come to expect. They welcome you to their friendly, professional office to
assist you with your insurance needs.
This State Farm Agency offers a variety of insurance services to include
coverage for your Auto, Home, Business, Health, Medicare Supplement and
Life insurance needs.
Office hours are 9:00 a.m. to 5:00 p.m. Monday through Friday, and Saturdays
and evenings by appointment. Customers can contact State Farm 24 hours a
day, 7 days a week to access policy information or turn in a claim. Clients can
also log on to www.statefarm.com for Internet access.
REDMOND PROFILES | APRIL 2022 | 5