Oregon Public Broadcasting

This week, Oregon was ranked fifth in the nation for its percentage of foreclosured homes.

OPB's Ethan Lindsey reports from Bend, the epicenter of the state’s collapse.

The number of home defaults in Bend doubled from 2007 to 2008.

A default begins the foreclosure process.

And things aren’t getting any better.

So far this month, Deschutes County records show an average of more than 10 homes plunging into default every single day.

And the median price of a home in Bend fell almost 20 percent last year.

Sheree MacRitchie: “It’s just supply and demand. We have a bigger supply, so prices have had to come down, quite a bit.”

Sheree MacRitchie is a realtor in Bend, and the president-elect of the Central Oregon Association of Realtors.

RealtyTrac, an industry service, says 1 of every 357 homes in Oregon is in some stage of foreclosure.

Sheree MacRitchie: “You’re going to laugh at this, I know, but there’s a lot of different energy that comes out of that home. I know that sounds very woo-woo.”

Some other realtors say they sometimes see a vicious cycle, with one foreclosed home dropping the price of all other sales in the neighborhood.