Housing market expected to Rebound in 2008

The National Association of Realtors expects that existing home sales will rise to nearly 6.4 million in 2008, which is up 6.1 million from the 2007 estimate. As for new homes, sales are projected to be at 865,000 homes sold in 2007, and 878,000 sold in 2008. More than 1.4 million housing starts, which include multifamily units, are expected this year and in 2008, which is down from 1.8 million in 2006.

All in all, existing-home prices are expected to gain 1.8 percent to a median of $222,700 in 2008 after this year’s decline of 1.4 percent to $218,800. The median of new home prices should rise 2.2 percent to $245,400 next year after this years 2.6 percent drop to $240,100. “Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” said Lawrence Yen, NAR senior economist in a release. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets. But with profit margins coming under pressure, homebuilders will limit new construction well into 2008.”

With these estimates, the market can still be viewed as very buyer friendly until next year when prices begin to increase as projected. However, with banks tightening up on who they are willing to qualify, it will continue to become harder and harder for buyers to qualify for financing.

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Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630
Or visit my website at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521



Source of information: The Reno Gazette Journal

High Rise Condominium projects now on Hold

Not even two years ago, it seemed as though you would hear about a new condo project every week in Reno, NV. Now that market has begun to slow, some developers are putting a hold on their construction. However, I don’t think this comes as a surprise to many people. With today’s market and economic climate, fewer buyers are able to find financing, and therefore current inventory seems to just sit on the market. So holding off on construction seems like the sensible move. In combination with new market trends, construction costs are on the rise as well. Just in the last few years, construction costs have risen from around $225 per S.F. to $425 per S.F. for downtown high rise construction.

Although it may sound like terrible news for developers who now must put their projects like the Arterra which is planned for the NW corner of Liberty and Sierra, and the Waterfront Towers on the SE corner of Island and Sierra, it is in fact somewhat of a blessing in disguise. Had they planned on breaking ground earlier, they could have found themselves in an even slower market, with even greater construction cost. “Unlike the development of single-family housing where you can phase construction, vertical development is a zero sum game,” said Fernando Leal, developer of the Montage. “Either you build the whole building or you don’t.” Project that have already started construction in downtown Reno and the surrounding area, have no choice but to continue until it’s finished.

Developers who broke ground early got lucky. Such projects as the Montage, the Belvedere Towers, Riverwalk Towers, and the Palladio are already seeing their buyers moving in, and are well on their way to selling out. Plus they avoided most of the price increase for construction.

However, there is still hope that there is strong enough interest for downtown living, that will give existing structure projects, like the Comstock conversion a good chance of success. Plus, the slow market for condos is still better than that of single family homes. The amount of unsold inventory among condos in Reno and Sparks Nevada is actually decreasing, whereas single family homes are not.

Related Posts
Home Sales Up Prices Down
Market Expected to Rebound
Quick Statistics

Should you have any questions or need further information, please don't hesitate to contact me,(775) 220-1630
Or visit my website at www.SellingNorthernNV.com




Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521