MARCH 8, 2007

Renaissance Homes Has Best Month Ever

With 48 homes sold and gross sales of $30 million in February,Lake Oswego's Renaissance Homes has announced its best sales month in the history of the 23-year-old company.

February's sales figures are a 15 percent increase in homes sold and a 20 percent increase in dollar volume over February of 2006, a year when the firm sold 301 homes, double its 2005 figure. Renaissance's old record was $23 million in March of 2006.

This February's figures follow $15 million in gross sales and 26 homes sold in January at the firm's 13 neighborhoods in the metropolitan area and Bend.

After a slowdown toward the end of 2006, traffic at Renaissance neighborhoods has been uniformly strong the last two months, which Renaissance President Randy Sebastian attributed to "a strong Oregon job market that continues to bring new people into the area. One week, five of seven sales at our Clark County neighborhoods were from people moving into the area from other states."

As with other builders, the end of 2006 housing market fall off left Renaissance with unsold inventory, an unusual position for a firm which normally pre-sells homes or has them pre-sold prior to completion.

"That turned out to be a blessing in disguise because when the market exploded in January, we had homes ready for people. This pickup has gone a long way toward eliminating our backlog of homes to be sold," Sebastian said.

Sales were strong across the board, although two recently opened neighborhoods, Rosemont Pointe in West Linn and PacificCrossing in Forest Grove contributed 18 homes to the total.

"Even if you take out the new neighborhood sales, we still would have had a record February," said Renaissance Sales Vice President Kim Whitman, who pointed out that the firm sold 10 homes in Bend during the month.

A special February promotion giving a Mercedes Smart Car with select move-in ready homes appeared to be most successful in Bend, where four of the Smart Car homes were sold. The Smart Car promotion emphasized Sebastian's commitment to green building, since it averages more than 50 miles to the gallon and has emissions similar to the Toyota hybrid Prius. During the month, eight homes were sold with Smart Cars overall.

"When we started the Smart Car promotion, our goal was to create a buzz that would generate traffic and that would sell cars," Whitman said. "Well, traffic was up 300 percent in February and we couldn't get cars for all our locations because the dealer was selling them so fast."

Although he's not ready to declare the national housing slowdown completely over, Sebastian said persistent local stories about housing are troubling.

"I've talked to other builders and most are saying the same thing. Sales so far this year have been very good and, in Portland, there has been a 12 percent average price appreciation over the last 12 months. Those things argue that the Portland market has pretty much avoided the problems which plagued builders elsewhere," Sebastian said.

Although existing houses are taking longer to sell, according to the multiple listing service, the average market time in December of last year was the same as December 2005 and Renaissance homes were selling for an average sales price of $600,000, up from $571,000 last March, said Whitman.

"Our buyers understand that their home represents a wonderful place to live with lasting value and a good return on investment," said Sebastian.

Renaissance Homes is one of the metropolitan area's largest homebuilders. Besides West Linn, Forest Grove and Bend, the firm has neighborhoods underway in Sherwood, Happy Valley, Wilsonville, Beaverton, Vancouver, Camas, southwest Portland and on the Oregon Golf Association golf course at Tukwila.



Renaissance Homes

16771 Boones Ferry Road
Lake Oswego, Oregon 97035
Voice: 503-636-5600
Fax: 503-635-8400
Emergency Service: 503-496-0711 or 866-567-6225