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SUMMARY HISTORY PEAKS & TROUGHS FORECASTS

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The growth of prior years has come to an abrupt end and resulted in the largest yearly price drop on record (in both nominal & real terms). This comes despite local job gains and historically low mortgage rates as price growth could not sustain prior levels due to poor affordability. Consequently, nominal and real prices should be expected to decline towards the historic level of mortgage debt servicing cost.

SEE PRIOR RENO PEAKS & TROUGHS Next >

Year	Nominal Price History	Nominal Price Growth	Real Price History	Real Price Growth	Reno Mortgage-Debt-to-Income Ratio	National Mortgage-Debt-to-Income Ratio
2001	$172,500	7.0%	$195,400	4.2%	19.4%	17.8%
2002	$186,900	8.3%	$206,300	5.6%	19.3%	17.5%
2003	$213,700	14.3%	$231,700	12.3%	21.4%	18.3%
2004	$278,600	30.4%	$294,900	27.3%	26.7%	19.6%
2005	$341,300	22.5%	$351,600	19.2%	33.3%	22.6%
2006	$332,900	-2.4%	$332,900	-5.3%	30.9%	21.7%

RENO, NEVADA - Q3:2006