New home sales rose in fourthquarter of 12007

Staff report

The Sales and Marketing Council of the Builders Association of Northern Nevada announced that fourth-quarter 2007 new home sales in Northern Nevada were up 3 percent over the same period in 2006.

Similar to the previous quarters in 2007, the South Suburban communities reported the most sales in the region at 40 percent of the total. Northwest Reno had 12 percent of total sales followed closely by Sparks with 11 percent of sales.

SMC began collecting sales data from its members in the second quarter 2006 so there is no year-end comparison. However, each of the second through fourth quarters 2007 showed an increase in sales over the same periods in 2006.

In January, The Builders hosted more than 500 people at "Forecast 2008 & Beyond," where industry leaders announced their housing market and economy predictions for 2008. U.S. Bank economist John Mitchell declared the recent housing boom an "international phenomenon." He said It was a history-making chapter in the construction business and he feels the housing market will grow again in 2008.

Wayne Capurro and Amy Lessinger from the Reno/Sparks Association of Realtors completed the presentations with their resale overview with the good news that "the bell curve is flattening." From January 2003 to January 2006 the median home price rose 100 percent. Current prices are around the 2004 levels.

Currently there is an abundance of inventory, low prices and historically low interest rates making now a great time to buy, they said. Most experts agree that inventory will begin to deplete soon and as that happens prices will begin to rise again.

The Builders Sales and Marketing Council collects traffic and sales data weekly from member builders representing more than 100 communities.

in Northern Nevada.