As a commercial real estate broker in Bend, OR, I can say that the commercial market is still strong as ever here. We're seeing cap rates hovering around 6-6.25% and anything that's a quality investment is gone within a few days.

The residential market has taken a bit of a softening but not as bad as the rest of the Country. Median home prices in Q2 were up 7% and Q3 is up another 3%(+/-). However, listings went up over 300% in the past four months and sales are at 25% of what they were this time last year (you do the math, there's a LOT of houses sitting around but the prices are staying strong). I am assuming we're going to see a correction like everywhere else, but I don't expect much of a price drop.

As an investment, I'd stay away from buying a home for the next 5-6 months. Let everything settle down and see where it goes and start writing offers in Jan/Feb '07. Now if you're looking for commercial property, send me a PM if you have any questions!