MAY 10, 2007

Renaissance Homes’ First Quarter ‘07 Sales Sizzle to Company Record

Lake Oswego-based Renaissance Homes has just completed the best quarter in the history of the 23-year-old company, according to its president Randy Sebastian.

During the first three months of 2007, Renassance Homes sold 117 homes worth $67 million, an average sales price of $573,000. This eclipsed the old company record set during the first quarter of 2006–100 homes worth $55 million.

“We’re feeling pretty good about our sales so far this year because we did better than the same period last year, which was at the height of the hottest sales market I’ve ever seen,” said Sebastian, whose firm sold 307 homes in 2006.

Renaissance sales were strong throughout the metropolitan area and “we even met our projections in Bend, where the market has been a little slower to recover than here,” said Renaissance Sales Vice President Kim Whitman.

Following a state-wide slowdown in sales last fall, activity, particularly in the Portland area, began to pick up in December. Heightened activity spilled over into January to the point that Renaissance neighborhoods in Happy Valley, Wilsonville, Sherwood and Beaverton are nearly sold out.

February 2007 was a record sales month for the company with 48 homes sold. January saw 27 sales for the company. There were 41 in March. While these figures represent sales rather than “closings”, Renaissance officials are confident their record will hold.

Portland’s west side has been particularly strong. By early May, Whitman said there were only three still available in the firm’s Richen Park in Sherwood, one home still to sell in Wilsonville’s Canyon Creeek and two at Renaissance Pointe in Beaverton.

Renaissance racked up 20 sales in Bend during the first quarter, “which met projections that we thought might have been a little optimistic since the cold winter weather there generally causes sales to slow way down.”
Even with the strong first quarter, Renaissance hasn’t increased its Bend prices because the market “remains a bit soft” there, compared to Portland, Whitman said.

Renaissance recently opened new neighorhoods in Forest Grove and West Linn which were strong contributors to the record first quarter, along with a pair of adjacent townhome neighborhoods in Vancouver. The firm’s Peterkort Woods townhome neighborhood off Barnes Road in Southwest Portland also continued strong sales during the period.

“We recently opened two special neighborhoods on this side of the river. Pacific Crossing in Forest Grove and Rosemont Pointe in West Linn. Sales have been brisk at both,” Whitman said.

He described the 300–home Pacific Crossing as having a “beautiful setting in a charming community. We knew sales there would be good because Forest Grove is a college town and a remaining piece of nostalgic Americana.” A particularly good price for the land also has allowed Renaissance to offer base prices on some more popular models significantly below comparable homes in its other neighborhoods.

Rosemont Pointe is a more sophisticated setting with some views. Prices range from $689,900 to $1,029,900. Many buyers at Rosemont Pointe have been familiar with Renaissance homes and Whitman said “many have lived in one of our homes before and they were anxious to see the next level.”

The Lakes and Hiddenbrook, two townhome neighborhoods in Vancouver’s Fisher’s Landing, recently opened and also have shown early strength, he said.

Although Whitman thinks many large builders in the metropolitan area are doing better than their national counterparts, he said Renaissance finish details and its use of green building practices could be part of the explanation for its particularly strong start this year.

“I know some other large builders don’t feel that their buyers are willing to pay for green building. Because this is the Pacific Northwest, we enthusiastically embraced ‘green’ building practices and systems several years ago, including use of the Rain Screen siding system which we use in the damp western Oregon climate. We’ve even appointed a director of building science and will be adding some new ‘green’ features in the near future. I think this has struck a responsive chord with many of our buyers,” Whitman said.



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