There’s good news in the latest housing market forecast for 2011 from the National Association of Realtors (NAR). After dipping 4.8% last year, sales of existing homes are predicted to grow 7.9%  this year, to 5.3 million. The gain for 2012 is forecast to be a little less, up 4.5%, to 5.53 million. The existing home median price went up 0.3% in 2010, a nice recovery from the 12.9% price drop of 2009. For 2011, the NAR sees it rising 0.5%, to $173,000, then another 2.4%, to $177,900, in 2012.

New home sales are forecast to come back more briskly, up 17.7% in 2011, following their 15.5% drop in 2010. The 2012 projection is for a strong 51.1% sales gain, to 565,000 homes. The median price for new homes, which gained 2.2% last year, should go up another 1.8% in 2011, to $224,700, then 1.9% in 2012, to $229,000. The NAR’s chief economist says this rebound in home sales does depend on an improvement in the jobs market. Affordability also matters and in Q4 of 2010 housing was the most affordable on record, according to NAR numbers going back to 1971. The NAR feels the current situation of low home prices along with low interest rates should continue.

During October 2009, the report showed Washoe County had 553 sales of existing single-family homes, an increase of 59 percent from October 2008 and a 10 percent increase from September 2009. The report listed the median sales price for an existing single family residence in Washoe County in October 2009 at $180,000, a 22 percent decrease from last year and a slight 3 percent decrease from the previous month. All sales numbers are for existing “stick built single family dwellings” only and do not include condominium, townhome, manufactured, modular or new home sales. The median sales price of existing condominium/townhomes in Washoe County in October 2009 was $64,950, down 46 percent from October 2008.

In October 2009, Reno (including North Valleys) had 398 sales of existing single family homes, an increase of 72 percent from last year and a 20 percent increase from September 2009. The median sales price in Reno for an existing single family residence in October 2009 was $185,622, a decrease of 23 percent from October 2008 and a 5 percent decrease from the previous month. All sales numbers are for existing “stick built single family dwellings” only and do not include condominium, townhome, manufactured, modular or new home sales. The existing condominium/townhome median sales price for October 2009 in Reno was $61,500, down 44 percent from last year.

Sparks (including Spanish Springs) experienced 150 sales of existing single family homes in October 2009, an increase of 29 percent from October 2008 and 10 percent decrease from the previous month. The Sparks’ median sales price for an existing single family residence in October 2009 was $165,000, a 23 percent drop from last year and a slight 3 percent decrease from September 2009. All sales numbers are for existing “stick built single family dwellings” only and do not include condominium, townhome, manufactured, modular or new home sales. The existing condominium/townhome median sales price for October 2009 in Sparks was $67,425, down 42 percent from last year.

The October 2009 report indicated that Fernley had 62 sales of existing single family homes, an increase of 77 percent from last year and a 63 percent increase from September 2009. The median sales price in Fernley for an existing single family residence in October 2009 was $115,000, a decrease of 23 percent from October 2008 and a 33.5 percent increase from last month. All sales numbers are for existing “stick built single family dwellings” only and do not include condominium, townhome, manufactured, modular or new home sales.

“This large increase in year-over-year existing home sales is phenomenal and is an indication of how slow and flat the market was last year,” said Kris Layman, 2009 President of Reno/Sparks Association of REALTORSR and sales associate at RE/MAX Realty Affiliates. “One of the reasons for the boost is the first time homebuyer tax credit and we are excited about the recent extension and expansion of the program. We are now hopeful that the extended period of the credit will allow banks to deliver on the high volume of pending short sales, where a large pool of buyers and sellers have been patiently waiting for third party negotiations.”

The Reno/Sparks Association of REALTORS® is an organization providing services to its members to ensure their success as real estate professionals, as well as protecting and promoting the consumer’s dream of homeownership. For more information visit www.rsar.net.