HomeMy WebLinkAboutCity Council Packet 04-16-2002 BOEAgenda
City of Plymouth
Board of Appeal and Equalization
Tuesday, April 16, 2002
8:00 p.m.
Council Chambers
1. Call to Order
2. City Assessor's Report
3. Public Comments
4. Adj ourn
2002
APPEAL &
EQUALIZATION
CITY OF PLYMOUTH
April 16, 2002
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: April 16, 2002
TO: Plymouth Board of Review
FROM: Nancy Bye, City Assessor
SUBJECT: 2002 LOCAL BOARD OF APPEAL & EQUILAZATION
The following report explains the statistical measurement and general information the
assessing staff -utilizes in determining values for the annual, January 2 Assessment. This will
hopefully make your job as a member of the Board of Appeal & Equalization easier to
understand.
The purpose of the Local Board of Appeal & Equalization is to hear testimony from property
owners on their objections to the Assessor's 2002 estimated market value or property
classification. This may be done in three ways: (1) in person, (2) in writing, or (3) by the
property owner's representative.
The Board of Appeal & Equalization is not empowered to adjust taxes, but only deal with the
2002 estimated market value or classification questions.
At the conclusion of the meeting the Board of Appeal & Equalization will recess, and will
reconvene on April 30, 2002 at 7:00 p.m. Decisions on all appeals will be made at that time
based on staff reports and information submitted.
Please read through the information and feel free to contact me with any questions or
comments you may have before the Board convenes.
Nancy Bye
Extension #5351
E-mail NBye@ci.plymouth.mn.us
TABLE OF CONTENTS
DESCRIPTION
LOCAL BOARD OF APPEAL & EQUALIZATION AUTHORITY
2002 BOARD OF APPEAL & EQUALIZATION SUMMARY
INTRODUCTION TO THE 2002 ASSESSMENT
INTRODUCTION TO PLYMOUTH ASSESSING DMSION
2002 ASSESSMENT STATISTICS
2002 SALES RATIO STUDY
DISTRIBUTION OF MARKET VALUE
SINGLE FAMILY HOUSING BREAKDOWN
2002 ASSESSMENT SALES STATISTICS
RESIDENTIAL VALUE DISTRIBUTION
APPEAL PROCESS
LAKESHORE STUDY
ADDENDUM
PAGE#
1
2
4
8
9
12
13
15
16
17
19
20
21
LOCAL BOARD OF APPEAL & EQUALZATION AUTHORITY
Minnesota Statutes, Section 274.01, provides that the council of each city shall be or shall
appoint a Board of Appeal & Equalization. The Plymouth City Charter requires that the
City Council act as the Board of Appeal & Equalization.
Assessments of property are made to provide the means for the measuring of the relative
share of each taxpayer in meeting the costs of local government. It is the duty of the Assessor
to assess all real and personal property except that which is exempt or taxable under some
special method of taxation. If the burden of local government is to be fairly and justly shared
among the owners of all property of value, it is necessary that all taxable property be listed on
the tax rolls and that all assessments be made accordingly.
The authority of the local board extends over the individual assessments of real and personal
property. The board does not have the power to increase or decrease by percentage all of the
assessments in the district of a given class of property. The County Board of Equalization
makes changes in aggregate assessments by classes.
Although the local board has the authority to increase or reduce individual assessments, the
total of such adjustments must not reduce the aggregate assessment made by the Assessor by
more than one percent of aggregate. If the total of such assessments does lower the aggregate
assessment made by the Assessor by more than one percent, none of the adjustments will be
allowed. This limitation does not apply, however, to the correction of clerical errors or to the
removal of duplicate assessments.
In reviewing the individual assessments, the board May find instances of under valuation.
Before the Board can raise the market value of property, it must notify the owner. The law
does not prescribe any particular form of notice except that the person whose property is to be
increased in assessment must be notified of the intent of the board to make the increase. The
Local Board of Review & Equalization assures the property owner an opportunity to contest
the valuation that has been placed on his/her property or to contest or protest any other matter
relating to the taxability of his/her property except the tax. The board is required to review
the matter and make any corrections that it deems just.
A new piece of legislation was added in the 1999 legislative session and affects the Local
Board of Appeal & Equalization.
Effective May 26, 1999 for taxes payable in 2000 and thereafter:
Chapter 243, Article 5, Section 24
Allows property owners to refuse to allow an assessor to inspect their property. The
refusal must be verbal or in writing. The assessor may then estimate a property's value
by making assumptions believed appropriate concerning the property's finish and
condition. If the assessor is refused entry, the local board of review may not adjust the
market value or classification in a way that would benefit the property.
2002 BOARD OF APPEAL & EQUALIZATION SUMMARY
The majority of properties in the City of Plymouth saw changes in their estimated marketvalue. The value changes range from general citywide increases to substantial increases due
to locational market activity. Average percentage increases in valuation are as follows:
Provertv Type
Residential
Residential Lakeshore
Condominiums
Townhomes
Apartments
Commercial/Industrial
Value Percent Change
11%
12.2%
13.9%
14.1%
10.2%
0%
Exceptions to the above market value changes would include new construction, quartile
areas, reappraisals, and/or other market adjustments.
The condominium and townhouse market continues to be a rapidly appreciating market. This
is based on the aging baby boomers and the demand for maintenance free living.
On March 15, 2002 estimated market value notices were mailed to all Plymouth property..
owners.
State law provides that the assessment shall be an annual assessment with all property in the
taxing jurisdiction re -valued to its market value every January 2°d. The City of Plymouth
continued to have a high quantity of building permits for new construction and remodeling
projects. This does not include the 5,299 quartile parcels that had to be reviewed and re-
appraised.
The Legislature in its 1993 session passed a law imposing a limit on how much an assessor's
estimate of market value is permitted to increase from one year to the next for taxation.
Under the law, assessors are required to continue to estimate the market value of all
properties. However, the law requires the use of a limited market value for purposes of
determining property tax bills. Approximately 18,480 of the 22,863 parcels in the City
qualify for a limited value. These properties are taxed on their limited market value, not their
estimated value. $391,121,300 of estimated market value is not being taxed due to the
limited taxation law. The Limited Law is gradually being phased out over the next several
years and is scheduled to sunset in 2007.
With the ongoing conversion of our computerized system for property appraisal, certain
workloads shifted. A computerized mass appraisal system requires extensive time verifying
the accuracy of the converted data as well as sketching to scale each property into the new
system. Our computerization of the assessing function of Plymouth continues to be one of
the most progressive and sophisticated systems that exists in the State of Minnesota. The
excellence and quality of the 2002 assessment is a direct result of this computerization.
2
The assessment just completed for 2002 represents many hours of staff research and time.
We feel confident the 2002 assessment is fair and well equalized throughout the City of
Plymouth.
Respectfully submitted
Assessing Department Staff
3
INTRODUCTION TO THE 2002 ASSESSMENT
The 2002 Assessment affects all property owners in the City of Plymouth. As required by
current state law, the Assessor is required to reassess all property each year.
State Statute reads: "All real property subject to taxation shall be listed and assessed every
year with reference to its value on January 2 preceding the assessment." This has been done
and the owners of property in Plymouth have been notified of any change. Minnesota State
Statute 273.11 reads: "All property shall be valued at its market value. It further states that
in estimating and determining such value the Assessor shall not "doth a lower or different
standard of value because the same is to serve as a basis for taxation nor shall he adopt as a
criterion of value the price for which such property would sell or in the aggregate with all the
property in the town or district but he shall value each article or descnption of propertY_b1+
itself, and at such sum or price as he believes the same to be fairly worth in money." The
statute says all property shall be valued at market value. This means that no factors other
than market (such as economics, personalities or politics) shall affect the Assessor's value
and the subsequent action by the Board of Appeal & Equalization.
Market value has been defined many different ways. Simply stated, it is "the highest price
estimated in terms of cash which a property will bring if exposed for sale on the open market
by a seller who is willing but not obligated to sell, allowing a reasonable time to find a
purchaser who is willing but not obligated to buy, both with knowledge of all the uses to
which it is adapted and for which it is capable of being used."
The real estate tax is an ad valorem tax which is based on the value of property and not on the
ability of the property owner to pay. The values placed on all real estate in Plymouth are
based on the amount of land and the improvements upon the land, while no consideration is
given to who owns the land.
The 2002 Assessment (not the 2002 taxes) reflects an increase of 11 % overall valuation over
the 2001. assessment (including new construction, quartile adjustments, and/or market
adjustments). This can be demonstrated as follows:
2001 TOTAL CITY VALUE
2002 TOTAL CITY VALUE
REI,IMINAIt
2002
PERCENTAGE
691879584,000 6985193789300
Total Value Increase: 66397949300 11%
Value of New Construction: 94,113000 2%
Appreciation of Existing Property: 5699681p300 9%
4
1
tl°; E
L' J
La
Li
LAi
2002 ASSESSMENT INTRODUCTION
During this past year, our staff has concentrated on collecting data on field property cards.
Once collected the data was entered into and calculated by the computer system. The output
is then analyzed for accuracy and parity.
Those areas of the city that equal 25% of all existing properties have been physically
reviewed during 2001 and represent over 5,750 parcels, excluding 2,256 building permits.
This is commonly referred to as the "Quartile". In the areas of re -inspection, new items that
previously were not on our records were added, or where applicable, deleted. 67% of all
homes reviewed were internally inspected. A preliminary sales study was analyzed, prior to
placing a final value on each property inspected.
Plymouth's preliminary residential median ratio entering the 2002 assessment was 85.6%.
Hennepin County determines this ratio. They compare the January 2, 2001 estimated market
values to sales occurring from October 1, 2000 through September 30, 2001. The average
residential increase for the January 2, 2002 assessment was 11%. This was determined by
comparing the January 2, 2002 estimated market values to the same sales, thus establishing
the 2002 estimated market values at a median sales ratio of 95.8 and a mean ratio of 95.6
with a coefficient of dispersion of 5.5. In accordance with the results of this sales study,
certain areas of the city, certain styles, and certain sizes of houses were adjusted in value,
either lower or higher than the prior year value, to more properly reflect actual market values.
This past year the appreciation on existing homes was again in the double digits.
The average 2001 mean sale price of existing housing stock in the City was $284,000, this
does not include townhouses or condos. This is extracted from the Hennepin County Ratio
Study of all arms -length transactions involving single family homes.
Lakeshore in Plymouth was adjusted according to the sale activity on each individual lake.
The average lakeshore property received an increase of approximately 12%. The average sale
price of existing lakeshore property in 2001 was $454,100.
Various townhouse and condominium complexes were adjusted according to market activity
as well as studied to determine if the number of bedrooms per unit affected the sales prices.
The average increase to the townhouses and condominiums was approximately 14%. The
sale activity of condominiums and townhouses remained brisk in 2001. The average sale
price of condominiums was $133,700. The average townhouse sale price was $185,200.
2
Commercial and industrial property values varied in growth or decline depending upon
the property type and usage. Overall, this property group experienced a minus aggregate
growth of .1%. Sales of smaller owner occupied type properties supported growth while
factors for larger multi -tenant properties showed signs of softness. Smaller single users
were able to take advantage of lower interest rates. However, the lack of supply pushed
the values upward. Multi -tenant office buildings started. to experience increasing
vacancies and weakening rents. This resulted in decreasing property values.
Manufacturing and larger single user warehousing properties also experienced softness in
the marketplace. The industrial market was considered to be flat in 2001. Hotel and
motel properties experienced big losses in their 0 quarter revenues. Reduced profit
margins played a significant impact on the property values for the 2002 assessment.
Apartment property for the 2002 assessment increased an average of 10.2% from 2001 to
2002. The factors contributing to the increases were market activity, increases in rents and
low vacancy rates of 4.5%..
The value we place on the property is accomplished only after we have conducted thorough
studies in the market place. Costs of replacement are checked with builders in the area, as
well as cost manuals that are available, which are put together by experts in the field of
building and appraising. Sales of property are constantly analyzed to see what is happening.
in the market place. The, assessors/appraisers do not create value; they only measure its
movements.
Assessing property values equitably is partly science, partly judgment, partly communication
skills, and largely a mystery to many property owners. Add to that the fact that property
construction, financing and ownership are more complex today than ever before and the task
becomes more difficult.
Training cannot tell us how to find the "perfect" value of a property, but training can
consistently produce the same estimate of value for identical property by different assessors.
That, after all, is a working definition of equalization.
The following pages contain information that hopefully will inform you and make your job as
a member of the Board of Appeal & Equalization a more productive one.
VA
Plymouth Assessing Department
City Assessor
Nancy D. Bye CAE
Senior Appraiser Commercial Appraiser
Jan Olsson RES Earl Zen CAE
Appraiser Appraiser Appraiser
Mike Henderson CMA Joan McCormick CMA Paul Kingsbury CMA
Part-time
Appraiser
Vacant
Assessment
Technician
Cindy Bowman
8
Accounting
Clerk
Joyce Kirkham
2002 ASSESSMENT STATISTICS
Total City Parcel Count (01-02-01) 22,760
Total City Parcel Count (01-02-02) 22,863
Parcel Count Per Appraiser 2002 Assessment 5,299
Assessor's Industry Standard per Appraiser 5,000
2001 Total Estimated Market Value $6,187,584,000
2002 Total Estimated Market Value (Preliminary) $6,857,378,300
2000 to 2001 Total City Valuation Growth +14%
2001 to 2002 Total City Valuation Growth +11%
2000 Total Building Permits 2,438
2001 Total Building Permits 2,256
1999 Plymouth's Average Home Sale Price _ 231,300
2000 Plymouth's Average Home Sale Price 243,300
2001 Plymouth's Average Home Sale Price 284,000
Does not include townhouses or condos)
2001 "Median" Sales Ratio (Assessment Level) 94.9%
2002 "Median" Sales Ratio (Assessment Level) 95.8%
The target ratio set by Hennepin County 95.5%
2002 Hennepin County Median Sales Ratio 95.4%
2001 Coefficient of Dispersion (Assessment Accuracy) 7.1%
2002 Coefficient of Dispersion (Assessment Accuracy) 5.5%
2000 Approximate Number of Sales (including new construction) 2,200
2001 Approximate Number of Sales (including new construction) 1,800
N
I'ap.)
ciri of
Plymouth, MN
This represents a compilation of information and
data from city, county, state and other sources that has
not been field verified. Information should be field
verified and compared with origianl source documents.
1,346,900 NOT TAXED
130 PARCELS
N
W+E
S
eel. Ja'
t j
r'
71
s'
I'ap.)
ciri of
Plymouth, MN
This represents a compilation of information and
data from city, county, state and other sources that has
not been field verified. Information should be field
verified and compared with origianl source documents.
1,346,900 NOT TAXED
130 PARCELS
N
W+E
S
2002 SALES RATIO STUDY
Equalizing is done today through the process of sales studies. These studies compare the
Assessor's value with that same property's actual sale price. This comparison gives us ratio
indicators that are recognized by the County and the State Commissioner of Revenue. The
ratio indicators must reach acceptable levels or they will trigger corrective action for general
across-the-board adjustments by the County Assessor or the Commissioner of Revenue.
These general corrections are essentially a "shotgun blast" type correction that affects the
adequate and inadequate values alike, and although they correct equalization across
jurisdiction lines, they do just the opposite within a jurisdiction by increasing inequity. In
Plymouth, this type of correction was received on Industrial properties for the 1998
assessment (-5% to building value). Fortunately this has never been done to residential
properties.
The 2002 sales study recently completed by our staff and Hennepin County places our
overall median ratio at 95.8%.
The Commissioner of Revenue and the Hennepin County Assessor have mandated that any
jurisdiction falling below a 90.0% plateau will be forced into corrective action, and then
everyone suffers. _
Our coefficient of dispersion in this year's study is 5.5%. This is comparable to other
jurisdictions of our size in Hennepin County. (Anything under 10 is considered excellent.)
This is a direct result of our computerization of the appraisal process and demonstrates our
ability to administer fair and equalized valuations at both ends of the value spectrum.
Our price -related differential is currently at 100.221. This shows our ability to treat higher
priced homes as equally as the lower priced homes. 100 is consideredep rfect.
12
Distribution of Estimated Market Value
by Property Type 2002
6%
22 0
72%
13
ESTIMATED MARKET VALUE
Percentage 2002 2001
Residential 72% 4,948,188,600 4,366,507,700
Commercial/Industrial 22% 1,503,043,300 1,466,380,800
Apartments 6% 400,146.400 354,695,500
TOTAL EMV 6,851,378,300 6,187,584,000
13
2002 RESIDENTIAL PROPERTY VALUES
Total Estimated Market Values According to Assessor Records
Market Value Ranges
Cityof$100,000 and under
100,001 to $200,000
Plymouth, MN 200,001 to $300,000
300,001 to $400,000
N
400,001 to $500,000
This represents a compilation of information and
W Edatafromcity, county, state and other sources that has
not been field verified. Information should be field
500,001 to $700,000
Over $700,000
verified and compared with origianl source documents. S
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: February 5, 2002
TO: Assessing Staff
FROM: Nancy Bye, City Assessor
SUBJECT: SINGLE FAMILY LIVING UNIT COUNT BREAKDOWN
TOTAL CITY)
The following is a listing of the type and the number of living units for each that is on the
tax rolls for assessment year January 2, 2002.
2002 ASMT 2001 ASMT
TYPE OF DWELLING OF UNITS OF UNITS
Apartment Units 5,766 5,641
Single Family Homes 15,178 15,147
Duplex 36 36
Condominiums 2,281 2,281
Townhomes 2,638 2,593
Permalease 42 44
Mobile Homes 62 59
Farm Houses 21 22
Seasonal Res. (Cabins) 7 7
Co -Op Units 210 133
TOTAL LIVING UNITS: 26,241 25,953
2002 Assessment represents an increase of 288 living units over January 2, 2001.
Total number of homesteads (1/2/02) 20,011
15
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: February 01, 2002
TO: Nancy Bye, City Assessor
FROM: Jan Olsson, Senior Appraiser
SUBJECT: ASSESSMENT - HENNEPIN COUNTY STUDY
SALES STATISTICS
OVERALL SALES RATIO
2002 Estimated Market Values were used on all sales)
STYLE OF SALES AVG. SALE PRICE MEAN RATIO
Ramblers 112 260,400 938
Splits 177 235,000 950
Two Stories 229 316,000 943
Rambler - Cluster
Homes 17 255,900 985
Splits - Cluster
Homes 65 204,200 968
Two Stories - Cluster
Homes 70 278,400 971
Condominiums 238 133,700 957
Townhomes 155 185,200 969
TOTAL 1063
The above figures are based on the sale of existing homes that meet the state criteria for arm's length
transactions.
Approximate Number Homes Sold (Including New Construction) 1,800
Average Sale Price of Single Family Homes $284,000
cc: Appraisal Staff
1%1
Plymouth Residential Property Value
Distribution 2001
VALUE PERCENT OF HOMES
UNDER $100,000 6.02 1,127
100,001 TO $200,000 47.02 8,797
200,001 TO $300,000 31.77 5,944
300,0001 TO $400,000 10.41 1,947
400,001 TO $500,000 3.50 655
500,001 TO $700,000 1.12 209
OVER $700,000 0.16 29
TOTAL 100.00 18,708
DOES NOT INCLUDE MOBILE HOMES OR CO-OPS.
17
50-
045403530Z
45-
40-
35-
30-
z
W
j 25
Wa
20-
01510515-
10-
5
0
U MER $100,001 $200,001 $300,0001 $400,001 $500,001 OVER
100,000 TO TO TO TO TO $700,000
200,000 $300,000 $400,000 $500,000 $700,000
VALUE
17
Plymouth Residential Property Value
Distribution 2002
VALUE PERCENT OF HOMES
UNDER $100,000 2.57 490
100,001 TO $200,000 39.90 7,615
200,001 TO $300,000 35.71 6,814
300,0001 TO $400,000 14.59 2,784
400,001 TO $500,000 5.08 969
500,001 TO $700,000 1.91 366
OVER $700,000 0.24 46
TOTAL 100.00 19,084
DOES NOT INCLUDE MOBILE HOMES OR CO-OPS.
18
0-
35-
353025z30-
25-
zW
20
W
a
15-
5105010-
5-
0-1
UPD9t $100,001 $200,001 $300,0001 $400,001 $500,001 OVER
100,000 M M M M M $700,000
200,000 $300,000 $400,000 $500,OOo $700,000
VALUE
18
MARKET VALUE APPEAL PROCESS
NOTICE OF MARKET VALUE
ABATEMENT PROCESS
DISCUSS WITH ASSESSOR'S OFFICEI I (ADMINISTRATIVE
REVIEW)
LOCAL BOARD OF APPEAL & EQUALIZATION
DENY APPEAL
COUNTY BOARD
OF EQUALIZATION
CHANGE
VALUE
APPROVE APPEAL
DENY APPEAL
STATE TAX COURT
19
2002 RESIDENTIAL LAKE SHORE SALES STUDY
2001 SALES)
NUMBER NAME 1 YEAR AVERAGE AVERAGE
OF OF OF LOT SALE
PARCELS LAKE SALES VALUE PRICE
116 Bass 3
37 Gleason 2
48 Hadley 3
33 Lost 3
139 Medicine 4
43 Mooney 3
53 Parkers 2
8 Pike 0
59 Schmidt 0
536 20
Parcels Sales
146,000 TO
285,000
102,000 TO
285,000
135,000 TO
395,000
100,000 TO
120,000
135,000 TO
226,000
135,000 TO
320,000
97,000 TO
200,000
90,000 TO
116,000
135,000 TO
220,000
765,800
326,500
478,000
236,700
285,000
715,700
249,500
0
0
Hennepin County Sales Study of all Residential Lake Shore Sales in Plymouth for the 2002
Assessment included:
TOTAL SALES: 8 MEAN RATIO: 85.5 Preliminary Ratio
AFTER ADJUSTMENTS MEAN RATIO: 98.9
Lakeshore properties were given a city wide average increase, then attention was paid to the
location of the lakes, the similarity of the lakes, and the market activity in the last year in the
various neighborhoods surrounding each lake to determine if further adjustments were
necessary.
20
ADDENDUM
21
Minnesota home prices up I I percent for year - 2001-11-30 - CityBusincss: The Business Journal of the Twin Cities
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Breaking News
November 30, 2001
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Minnesota home prices up 11 percent for year
Prices for houses in Minnesota rose 11 percent from a year ago. That ranks the state fifth on a national
list of home appreciation.
The list is compiled quarterly by the Office of Federal Housing Enterprise Oversight (OFHEO) and is
based on data from the federal mortgage -backing organizations commonly known as Fannie May and
Freddie Mac.
House prices rose fastest in the District of Columbia (up 16.2 percent from a year ago) and slowest in
Nebraska (4.4 percent).
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California was second, with house appreciation of 12.5 percent. However, OFHEO noted that prices Hot -1 eadst
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for homes in Silicon Valley actually dropped slightly over the last year. In San Francisco prices stayed busiinesses,
on new
level. Both numbers are a marked change from the heyday of booming technology companies. homeowners
The national average for house appreciation was 8.4 percent over the year.
Copyright 2001 American City Business Journals Inc.
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12/3/01
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combined issues for May -
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November -December.
Minneapolis Area
Association of REALTORS`,
5750 Lincoln Drive,
Minneapolis, MN 55436
Telephone: 952.933.9020
Fax: 952.933.9021
Office hours:
8:00 a.m. to 4:30 p.m.,
Monday through Friday,
except holidays.
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POSTMASTER: Send
jaddress change to:
The REALTOR".
P.O. Box 9570,
Minneapolis, MN 55440-9570
Minneapolis Area
1 Association of REALTORS'
Budd Batterson, GRI
President
Joanne Smaby, CSA, CBR,
GRI, CRS
President-elect
Ann Brockhouse, GRI,
CRS -
Secretary
Lynn Leegard, GRI
I Treasurer
Mark D. Allen
Chief Executive Officer
Affordable Housing
continued from page 1
proactive agenda to address affordable
housing issues. Effective housing strate-
gies necessitate empowering REAL-
TORSa' at the local level to be common
sense advocates on affordable housing
concerns.
Economic slowdown left behind by
strong housing market ...
Economic growth stalls ...
Like many contemporary economists
Freddie Mac reports the economy will
slow to one percent growth for the first
half of the year before bouncing back to
almost three percent growth in the third
and fourth quarters. This seems to be
supported by the Consumer Confidence
Index (CCI), which after five months of
free fall continues to hover in the 100 -
110 range. The index reached its high at
142.5 in September 2000. NAR's re-
search department is projecting the CCI
to stay fairly level for the next few
months.
Housing market marches on ...
NAR has revised its 2001 existing home
sales by increasing its projections 3.8
percent to an annualized 5.13 million
units. While most of the rest of the
economy has slowed, the real estate
market has remained strong due to
historically low rates and continued
strength in the job market.
Wt -1) page: nhplsrcaltor.com
marcn
2001 .
Single Family Residential
Number of new listings'. 6,127
Number of closed sales :3,053
Closed sales $580,309,569
Average sales price.: ; $190,265
Median sales
so...................................
7o-----
le XX
Source: Source: us Bureau of Census
The greater Twin City market continues
to outperform the national market in
existing home sales. As indicated in the
chart below, March pending sales were
up 1.4 percent, new listings processed
were up 4.1 percent and the median
sales price for a single family were up
11,100 for a 12.7 percent increase over
March 2000.
Freddie Mac expects single-family
housing starts to remain on a 1.6
million -unit course for the immediate
future. These projections are supported
by a recently released report from theBuildersAssociationoftheTwinCities
that indicates 2001 is lagging about
twenty percent behind 1999 and 2000
permit and unit numbers but well ahead
of numbers prior to 1998.
Sources: The Real Estate Outlook, NAR, Wall Street
Journal, Investors Business Daily, Builders Association of
the Twin Cities
Year to Date
rya .
2001 ,2000.:;.. a change
change ::.:
All Property Types
5.37:
2.757 10.74
462,104,431 25.58
167,611 13.52
3,033 1 + 9.07
Pending at month-end
All Property Types
13,935
6,720NumberofnewUsti.ngs 6.0.97 I ' + 4.i2
Number of closed sales 3,308; 3,033 1 + 9.07
Pending at month-end 4,639 1, 4,576 + 1.38
Total listings at month-end 13,964 12.5191 +11.54
15,548 13,935 11.58
7,585. 6,917 1 9.66
1,423,442,038 51,152,212,278 ' 23.54
187,641 1 $166,553 12.66
159,995'.,1 140,5001 13.88
17,909 " I 16,336 I 9.63
8,301 7.686 8.00
Residential onlysingle family, condo. townhouse. Ivirmhor". All property type-' single family. condo. townhouse, twrnhome. duplex. moRome. larms4lobhy farm. mvestmnnf and lots°acreagebile
Based on dales from Itic Regional Multiple Listing Service — -- -- —
The 1tE:1LT01V Nlah /.little 2001
Our Mission:
Creating
Economic
Value For -
Our Clients
In This Issue:
Parking Costs in`
Metro Areas
Show Double
Digit Growth
North American
Parking Rates
Outlook For
Land Values
Towle's
Downtown
Experience Earns:
Premier Leasing .;
Assignment
Three ADC
Properties
Available in
Shakopee
COLLIERS
TOWLE
Outlook For Land Values
The Colliers Towle Appraisal team
predicts that land values for single-family
residential properties will climb while
commercial/industrial land will remain stable or
even decline over the next 12 to 24 months.
The combination of interest rate cuts, tax cuts
for apartment owners, and the housing shortage
in the metro area has translated into much
higher demand.
Land sales just outside the MUSA line are
abundant, and prices are increasing significantly.
Historically, homebuilders would pay up to 201/6
of the home sale price for land Today, metro
suburban pricing is in the 25-30016 range!
Values in multifamily housing will mark big
gains, according to Rodger Skare, MAI. Given
the strong demand for apartments, some
suburbs are approving land use changes from
commercial/industrial to multi -family for
new apartment development
Since January, Colliers Towle's Appraisal team
has appraised over 75 properties, representing a
total value of $340 million and 4.9 million square
feet of space.
Tow1&s Downtown et,enoe
Earns Premier Assignment
Northstar Center, Minneapolis
TrizecHahn Corporation has chosen
Colliers Towle Real Estate to lease its Northstar
Center office property in downtown
Minneapolis. The mixed-use development
includes 813,000 sq. h of office, retail and
storage space. It is attached to the Crowne
Plaza Hotel, the 1,000 -car Northstar parking
ramp, and has four skyway connections.
The Colliers Towle leasing team includes
Larry Chevalier, SIOR; Jeff Hart; and
Tina Feisthamel. According to Chevalier,
a,
With the ongoing renovations of the food
court and common areas, and all the nearby
amenities, it presents an excellent opportunity
for a company with the desire to be located
in the heart of the Minneapolis CBD at an
exceptional value. It's a tremendous property
in a Class A location."
Three ADC Properties
Available in Shakopee
Colliers Towle is exclusively representing
ADC in the marketing of three of its five
facilities in the Valley Green Business Park
located in Shakopee, Minnesota ADC plans
to consolidate its manufacturing/distribution
operations into two owned facilities.
A 490,000 sq ft
manufacturing
facility that sits on
6021 Broadband Blvd. a 106 -acre site at
6021 Broadband Blvd is for sale. The shell
building and surrounding land offers a unique
opportunity for a space user to acquire a campus -
type setting, and to custom -finish the interior.
r" • Available for
sublease at 1087
Park Place is an
1087 Park Place . office/distribution
warehouse of 120,000 sq. ft. that
is 100% leased (but vacated) by ADC.
C • Also available
for sublease,
530112thAve Fast
530112th Ave. East (106,000 sq. ft)
is in the Valley Oaks Business Centex
The Colliers Towle corporate real estate team
includes Raymond Reese, CCIM, SIOR,
who' has worked on ADC real estate
acquisitions and dispositions for over 20 years;
Jeff Patterson, MCA; and Chris Pendroy.
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The '
Published monthly except
combined issues for May -
June, July -August and
November -December.
Minneapolis Area
Association of REALTORS',
5750 Lincoln Drive,
Minneapolis, MN 55436
Telephone: 952.933.9020
Fax: 952.933.9021
Office hours:
8:00 a.m. to 4:30 p.m.,
Monday through Friday,
except holidays.
Subscription rate: Membei
12 a year paid with dues.
Others: $30 a year.
USPS 351160
ISSN 1054-9684
Periodicals postage paid at
Minneapolis, Minnesota and
additional mailing offices.
POSTMASTER: Send
address change to:
The REALTOR•,
P.O. Box 9570,
Minneapolis, MN 55440-9570
Minneapolis Area
Association of REALTORSs
Joanne Smaby, CSA, CBR,
GRI, CRS
President'
Todd Grill, GRI, CRS,
CRB, ABR
President-elect
Deb Greene, GRI, CRS,
ABR
Treasurer
Lynn Leegard, GRI
Secretary
Mark D. Allen
Chief Executive Officer
MINNLAPOLIS
wA•u•n. s
REALTORS
aahonmwafla-
Did September 11 attack on America result in attack
on Twin City real estate sales?
Home sales up in fourth-quarter
The answer is a resounding NO! There
were 2,978 pending residential sales in
November, up 22.8 percent from 2,424
pending sales in November 2000. This is
the largest number of November pending
sales on record for the 13 county Metro-
politan real estate market. 719 pending
sales were posted the first week of Decem-
ber. Weekly pending sales of 700 to 800
units are more typical for the months of
September and October.
Year-to-date sales near record high
Twin City year-to-date pending sales
through November is at 43,964 units, a
9.7 percent increase over the 40,073 sold
through the first eleven months last year.
The average price of a closed home sale in
2001 is $201,658, a 10.9 percent increase
over the $181,836 average during the first
11 months of 2000. The year-to-date
average closed home sale has dropped
slightly from the October 2001 high of
201,764..
The Twin City 2001 residential market
appears to remain on pace to finish the
year with the second or third highest real
estate sales total in history. The record
year of 1998 finished with highest total
residential unit sales.
Where do we go from here
Housing affordability continues to be the
buzzword in many American housing
markets. The November affordability
index stands at 135.4 in the Twin City
area. This means the typical Midwest
household has 135.4 percent of the
income necessary to purchase the me-
dian price Twin City home. Nationwide
the NAR affordability index stands at
148.8. The affordability index has
remained high due to flattening real
estate prices combined with declining
interest rates.
The decline in the Consumer Confidence
Index moderated dropping only 3 points
to 82.2 in November. The first 8 months
of 2001 the Index ranged between 110-
120. According to NAR, "Consumer
confidence has fallen for five consecutive
months and is now at its lowest level
since 1993. In the 1991 recession,
consumer confidence declined to a trough
of 55 over an 11 month period."
Sources: The Real Estate Outlook, NAR, Wall Street
Journal, Meyers Group
2 - The REALTOR* • January 2002
JW&J \dJ JVI 1,V 1v'J\./11 1,VI 4% SIP 114/IJltill i%
Mutual rands .. , ......D7 facility in Singapore. Tum to D3 '
v.startribune.com/business * StarTn'bune Wednesday, January 16, 2002 • Sectio!
BANKS
S. Bancorp
hares rise on
slid results
nk's performance is
bilizing, analysts say
e DePass
IribuneStaffWriter
er a tumultuous year of constant earnings
ices, U.S. Bancorp on Tuesday released its
straightforward earnings report since its
2r with Firstar Corp. II months ago.
e are not seeing the kind of ugly numbers
ve saw in the last few quarters" at the bank,
nalyst Jon Arfstrom with Dain Rauscher.
he quarter was devoid of major surprises,"
d analyst Ben Crabtree with Advantus
gement Capital. "I think management this
nade an effort to make it more transparent
n the past.... It was an OK quarter."
e results were in line with analysts' esti-
and U.S. Bancorp's shares Closed Tues-
20.70, up 35 cents. The stock's 52-week
s $25 a share.
urth-quarter operating earnings dropped 5
nt to $785.2 million, or 40 cents a share,
a year ago, as expenses grew faster than
me. Full -year operating earnings fell 18
nt to $2.5 billion.
Ital non-interest expense for the quarter
by 11.6 percent to $156.1 million before
er and restructuring charges.
urth-quarter net income, which includes
ecurring items, fell 10 percent to $695.4
In, or 36 cents a share, from a year ago.
Home sales set record
Record year for Realtors
Twin Cities -area Realtors set records in 2001
for the number of closed sales and the', ;
annual median sale price. The sales closed
figure was 3.7 percent higher than the
previous record In 1998, while the median
sale price rose 11.8 percent from 2000
Number of > Median price
closed sales Inthousands
18t) $170.
50,000 _...... 49,603
49,000-160
48,060 -47,838_. ...$124.9
140 _..___ •-
47,000 —
46,000 '120
45,000 1 100,
98 99100 ;01 " ` 98 99100 '011''.
SoW= RegbnW MLS of mviesota kr-
Transactions top98 mark
By Neal Gendler
Star Tribune Staff Writer
Lifted by a tide of high de-
mand and low interest rates,
Twin Cities -area home sales
set a new record last year, and
indications suggest this year
will be a little better, area
Realtors said Tuesday.
Last year, 49,603 sales of
single-family homes, town-
houses and condominiums
were closed in the 13 -county
metropolitan area, up about 4
percent from both 47,580 in
2000 and 47,836 in 1998, the
previous record.
Values also set a record:
The median price in 2001 was
170,000, 12 percent higher
than 2000's $152,000.
The record. was an-
nounced at a news confer-
ence in the St. Paul Science
Museum featuring the presi-
dents of the four metro -area
Realtor associations, St. Paul
Mayor Randy Kelly and Met-
ropolitan Council Chairman
Ted Mondale.
Despite the rising median
price, which was only
136,900 in 1999, "the 2000
census shows us that we have
the highest rate of home own-
ership in the nation," Mon -
dale said. -
HOMES continues on D2
Very tight rental market.
Dow lndnd
CLOSE 9,92
up32.73
IIAJ
C1 2,00
upio.i7
VOLUME -1.1
ME
582,
up 3.59
VOUAM is
SW 500
CLOSE i,id
up 7.78
A,u. ... Rnudl 10
CLOSE 485
up 1.99
Bloombeq
Tribune 1(
CLOSE 117
up 0.01
Gold
CLOSE 284
down 215
iwlaralam.
Oil7CLCLOSE 18:
w 0.02
WeaTismaw
tw . Mtn
34M T -0O
31r.Tu
101r.Tim
30F.T-bm
Pd=*b
say
S is
hey
the
uti-
as S
gest
002
that
Be -
any
tax -
dual
in -
long
the
US' -
that
can
pany
1 the
nent
gher
for
oyer-
etire-
these
oyee
rbara
Mill-
ing to
busi-
credit
A lre-
n't al -
500
c first
n sai d
114.5 cents in 1001 to 36.9
cents this year, Weltman said,
And self-employed people.
can now deduct 70 percent of
their health insurance costs,
up from 60 percent. one desired change that
didn't occur is an increase in
what's known as the Section
179 deduction. This deduc-
tion, named for an Internal
Revenue Code provision, al-
lows a small company to de-
duct the cost of equipment
bought and put into service
during the calendar year.
The deduction remains at
24,000 in 2002. Weltman
said it's possible that Con-
gress might pass an increase
this year, but cautioned busi-
nesses against counting on
one.
Besides the changes in tax
code provisions, the IRS has
undertaken a policy shift af-
fecting S corporations. -
In an S corporation, the
company's earnings are not
taxed, but are instead "passed
through" to shareholders,
who list the income on their
individual returns.
Some S corporation own-
ers have sought to lower their
employment tax bills by tak-
ing minimal salaries andtreatingtherestoftheirin-
come from the company as
pass-through earnings.
0 Tax officials, well aware of
this practice, are trying to end
it.
U1011811, MU, I'M'V ,.uu Huu,o
of $154 million on Tie sale of se-
curities. Those gains were par,
tially offset by a $37 million netlossinventurecapitalInvest-
ments and $100 million worth
of integration, acquisition and
other non-recurring charges.
Expenses, excluding inter-
est costs, rose 7 percent to
3A5 billion In the quarter. An-
growdt was exceptlonal. "Core
revenue growth that was up 16
percent year over year and up 6 .
percent from the third gparter
fs pretty remarkable." Average deposits grew 16
percent to $176 billion from
fourth-quarter 2000. Average
loans grew 7 percent to $167
billion during the quarter, with
HOMES from Di
Minneapolis, st. Paul to lobby
L gi'slature on dousing issues
We do have a serious
shortage in affordable rental
housing," Mondale said, not-
ing that this is one of the tight-
est availability rates in the na-
tion." The rental vacancy rate
has ranged from 1.5 to 2.5 per-
cent during the Past Year -
That tightness as well as
continuing population growth,
relatively low Interest rates and
a relatively strong local econo-
my lead Realtors to expect 2002000, home sales to surpass
said Joanne Smaby., president
of the Minneapolis Area Asso-
ciation of Realtors, the area's
largest association.
expectedShesaidvaluesareexp
to rise 10 percent, and. the Na-
tional Association of Rbaltors
NAR) "sees interest rates re-
maining low, which will be a
key to the housing climate."
She said she was quoted rates
of 6.75 p%rcent Tuesday. Na-
to $1.Y0 DIR1011,
Wells Feirgo wtote off $1
million in derivative -linked as-
sets belonging to bankrupt en-
ergy trader Enron Corp. during
the quarter. The bank made no
loans to Enron, officials said.
Wells Fargo also suffered a $21
million hit to quarterly earn-
ings due to the recent devalua-
tionally, 5.25 million home
sales set a record, and NAR ex-
pects 2002 to finish around
5.23 million, down a half -per-
cent.
Mayor Kelly said that "in the
course of the next year or two,
we will be adding about 2,000
housing units in St. Paul -"He
has pledged to add 5,000 hous-
ing units during his four-year
term. Even with the shortage,
Kelly said, St. Paul has themost -affordable rental housing
of any major U.S. city, with
only 27.6 percent of renterhouseholdsexceedingthe de-
sired maximum payment of 30
percent of income for rent.
Minneapolis and St. Paul
will jointly lobby the Legisla-
ture on housing issues this
year, Kelly said. "We are going
to be advancing a very aggres-
sive housing agenda. -He i
suggesting a constitutions
Mer.Me.
The IRS will enforce the
shift by more closelySmall
redit is
policy
scrutinizing how S corpora -
s with tions allocate salaries and
es. pass-through income.
U1011811, MU, I'M'V ,.uu Huu,o
of $154 million on Tie sale of se-
curities. Those gains were par,
tially offset by a $37 million netlossinventurecapitalInvest-
ments and $100 million worth
of integration, acquisition and
other non-recurring charges.
Expenses, excluding inter-
est costs, rose 7 percent to
3A5 billion In the quarter. An-
growdt was exceptlonal. "Core
revenue growth that was up 16
percent year over year and up 6 .
percent from the third gparter
fs pretty remarkable." Average deposits grew 16
percent to $176 billion from
fourth-quarter 2000. Average
loans grew 7 percent to $167
billion during the quarter, with
HOMES from Di
Minneapolis, st. Paul to lobby
L gi'slature on dousing issues
We do have a serious
shortage in affordable rental
housing," Mondale said, not-
ing that this is one of the tight-
est availability rates in the na-
tion." The rental vacancy rate
has ranged from 1.5 to 2.5 per-
cent during the Past Year -
That tightness as well as
continuing population growth,
relatively low Interest rates and
a relatively strong local econo-
my lead Realtors to expect 2002000, home sales to surpass
said Joanne Smaby., president
of the Minneapolis Area Asso-
ciation of Realtors, the area's
largest association.
expectedShesaidvaluesareexp
to rise 10 percent, and. the Na-
tional Association of Rbaltors
NAR) "sees interest rates re-
maining low, which will be a
key to the housing climate."
She said she was quoted rates
of 6.75 p%rcent Tuesday. Na-
to $1.Y0 DIR1011,
Wells Feirgo wtote off $1
million in derivative -linked as-
sets belonging to bankrupt en-
ergy trader Enron Corp. during
the quarter. The bank made no
loans to Enron, officials said.
Wells Fargo also suffered a $21
million hit to quarterly earn-
ings due to the recent devalua-
tionally, 5.25 million home
sales set a record, and NAR ex-
pects 2002 to finish around
5.23 million, down a half -per-
cent.
Mayor Kelly said that "in the
course of the next year or two,
we will be adding about 2,000
housing units in St. Paul -"He
has pledged to add 5,000 hous-
ing units during his four-year
term. Even with the shortage,
Kelly said, St. Paul has themost -affordable rental housing
of any major U.S. city, with
only 27.6 percent of renterhouseholdsexceedingthede-
sired maximum payment of 30
percent of income for rent.
Minneapolis and St. Paul
will jointly lobby the Legisla-
ture on housing issues this
year, Kelly said. "We are going
to be advancing a very aggres-
sive housing agenda. -He i
suggesting a constitutions
Mer.Me. 519,2U1.US18,25.0 12.5
Np„Llne, 1,690.0 8,843.0 13.0
Ineane 3,423.0 4,026.0 -15.0
Net/an 3,409.0 4,009.0 -15.0
Ears/share 1,91 2.33 15.5
Figureshma memptforeaminpPer
ahem
amendment on this fall's ballot
that would allow the state to
use its bonding authority to
build housing.
Smaby praised American
resilience, pointing out that
home -sale activity dipped only
slightly after Sept. 11 and thenrecovered. She said that Min-
neapolis had the state's largest
number of sales, 5,193, and
that the city's median price
rose 18 percent, to $149,900
from•$127,500 in 2000. In sales
by county, Hennepin's 17,932
led the state, and median price
rose 1,3 percent to $173,500. North Metro Realtors Asso-
ciation president Jim Cormier
said 5,348 Anoka County sales
closed in 2001, up 5 percent
from 5,105 in 2000. The median
price was $164,900, up 14 per-
cent from $144,900 in 2000.
Southern Twin Cities Asso-
ciation of Realtors president
Todd Jorgensen said Dakota
County sales of 6,393 were up 8
percent from 5,942 in 00,
and the median priceof
179,000 was p 10 percent
s from$162,000.
1 In Ramsey County 6,488
closed sales were 2 percent
ahead of 6,367 in 2000, said
Ron Cylkowski, president of
the St Paul Area Association of
Realtors. Median price was
154,900, up •15 percent from
135,000 in 2000.
Although sales were down
12 percent in St. Paul, the me-
dian price rose 17 percent, to
139,900.
This year's sales started at a
pace Realtors consider normal,
unlike the two previous years,
when an inventory shortage
led to several months of price
raising bidding wars, especially
for entry-level homes. This
year, inventory is up substan-
tially. At the end of November, the most recent month for
which data were available,
18,495 listings were on the
market, a 34.5 percent increase
from 13,755 the previous No-
vember. In December, 29735
new listings were added to the
market, 624 more than the
2,111 added in December 2000.-
Neal
000:
Neal Gendler is at
ngendler@swrtribune-COM
reOlganlZatlOII plan
creditors have of being
cue served if Stockwalk is
iilliam Kampf said last
anon plan, filed Tues-
uptcy Court in Minne-
r precarious the Golden
financial outlook has
ads to rebuild its busi-
out to both sharehold-
of whom are longtime
odkwalk stock would get
3tockwalk's shares were
the Nasdaq Stock Mar-
3st week; they hit their
t two years ago.
mD2
uU market was Itift
utheran
nod will
Thrivent
Ixitheran Brotherhood
utherans plans to adopt
Financial for Lutherans
yofficials saidTuesday.
sd from 850 possibilities
who worked with out -
red -and -gold heart logo
rand in NewYork
to emphasize the word
mpany's goal for its 3
ers, CEO Bruce Nichol-
keffectlan. i.
ron't become final until
proval this spring. The
iroved by the states in
business.
d (LB) and Aid Associa-
shocked the insurance
nnouncing the merger,
i billion in assets. Merg-
rare among nonprofit
s, and AAL and LB were
lions for Lutherans.
T:
Lutheran market
Home sales are usually -slow during the fourth quarter, but that wasn't the oase In the Twin Cities. The area's
median sale price recorded the second -fastest rate of increase In the nation last quarter, according to a report.
Metro -area home prices soared more than
22 percent last quarter from a year earlier.
By Neal Gendler
Star 7)lbune Stafj`'Writer
Twin Cities -area home prices
in the fourth quarter rose 22.3
percent over a year earlier, the
second -fastest rate of increase in
the nation, according to a report
Tuesday by the National Associa-
tion of Realtors (NAR).
For the quarter, the median
home price for the 13 -county
Twin Cities area was $172,800, the
report said. For the year, the mar-
ket's median price — half the
homes selling for more, half for
less — was $170,000, up 12 per-
cent from $152,000 in 2000.
In the Twin Cities area, sales
normally are slow in the last quar-
ter, said Joanne Smaby, president
of the Minneapolis Area Associa-
tion of Realtors. She said 2001 was
different for two reasons: Interest
rates dropped after the Sept. 11
attacks and housing inventory
improved.
Budd Batterson, association
president in 2001, has said inven-
tory was building for much of the
year, but the growth drew scant at-
tention until a summer slowdown.
HOMES continues on D3:
Median existing -home prices
rose 6.2 percent nationally.
COMM'UNICATIQNS'
Fueling the home
market
Home prices rose in the fourth
quarter, as cid the number of
sales transactions and home
listings.
Pendingsales reported
2000 2001
Oct 49,200• 58,000
Nov. 50,700 58,900
Dec. 46,700 56,900
New listings
2000 2001
Oct 59,400 81,000
Nov. 63,300 80,300
Dec. 55,700 72,200
Source: Regional Multiple Listing
Service of Minnesota Inc.
ifinnik dimes rn n 'tAlAnIxemnarl eiaFonnnrl olainvad n rndi int
4;
al
Tn TARvl.
in San Francisco Bay area
At the -end of:.December, omisL
alrea
listings were on -the . That's happening
15,375
market, compared within
end of 2000. thgnven if
TwiCitiesnaory s u
11,259 atthe
Said Smaby, "It was very we 're still having multiple o
fers on good properties andunusualthatthelastquarter
that we would have increased 200,000," said Smaby, .
Edina Realty agent. Lowsalesandincreasedinvento-
ry. Those don't happen si= . terest .
eOt
le into
tes
lieemartractPPmultaneouslyinthelast
of a normal market:" she said. Tuesday's rate
wquarter
Mark Allen, Minneapolis- Edina Realty Mortgage
ben.
area association CEO, said
the fourth quarter of
x.875 percent for themaz)C 30 -year fixed-rate to
that
2001; measuring the criteria with zero points and a 1 p
fee.:
fromweekto week- with the
exception of the
cent origination
Some analysts said ti
possible
weeks of Thanksgiving and
Christmas - we exceeded
the gains in housing h
been fueled by increased b
pending sales of any previous
fourth so the demand
rowing,, resulting in a p
bubble at is i jeopardy
quarter,
was there." Sales pending are bursting• Debt n ho
to 46.8 percent ofthoseforwhichpurchase
agreements have been signed
rose
value in 2001, up from 40
33
but which have not yet closed. cent in the 1980s and
in the 1970s, actorForthemetroarea, the re-
port used data from Anoka,
cent
to Morgan Stanley Dean
Carver, Chisago, Dakota,
Goodhue, Hennepin, Ram-
ter &Co.
The. San Francisco
sey, Rice, Scott, Sherburne, Wright
area wassthe
in the
most
ntry o bplace
Washington and
counties in Minnesota and St.. single-family home, wi
price of $463,
Croix County in Wisconsin. median
h v ra a rice in the
dy
f-
er
an
m-
at-
ket,
at
as
ch-
an
er
were'unavailable'for com-
mentTuesday.
General Mills subsidiary
Pet Inc. also announced a
cash tender offer for $91.5;:
million of its 6.5 'perceutf
notes due next year. The of-
fer will expire Feb. 22.
Ann MerriU
at
ave
or=
rice
of
nes
their i
per- i
per- Iding
Wit- IBay
nsive
uy a j
th a
900.
T e a e g p Bay
Area 9-11 1.3 percent from a
year earlier, the seventh -big-
gest decline in the study. The
second -most expensive place
to buy a home was Orange
County, California, where the
median price rose 12 percent
to $360,900, followed by the
Boston area, where the aver-
age price rose 6.3 percent to
350,400.
We expect the typical
home price to rise at a little
slower pace this year - up
about 4.5 percent, Martin
Edwards Jr., NAR president,
said in the group's report.
Smaby said that at her of-
fice in Edina, she's noticed
that "a majority of our sales in
the last week have been un-
der $200,000. That's where
the market is." She could only
surmise that "first-time buy-
ers could be concerned about
appreciation and trying to
buy before prices go beyond
their reach."
Bloomberg News contrib-
uted to this report.
Neal Gendler is at
ngetidler@startiibitne.com
Biggest gains out East
Nationally, the median ex-
isting -home price rose 6.2percent, to $148;000 for the
quarter, from $139,300. a year
earlier, NAR said. NAR based
its results on a survey of 120
metropolitan areas.
The greatest percentage in-
crease for the quarter was
New York's Nassau and Suf-
folk counties, east of NewYork
City, which rose 23 percent to
269,900. Following the Twin
Cities area were New Jersey's
Monmouth and Ocean coun-
ties, at 21 percent, and Wash-
ington, at 20 percent.
Home prices have held up
in the first U.S. recession in a
decade, with the inventory of
homes available in the quar-
ter equivalent to 4'h -month
supply, compared with the
six-month inventory that sig-
nals a balanced market, NAR
said. "The shortage of homes
for sale means that buyers are
competing with each other
and driving up prices," said
Lawrence Yuri, an NAR econ-
Computer Network
offering detailed .
Computer Network
Technology Corporation's
planned offering of.$125
million in convertible sub-
ordinated notes is expected
to include a coupon of be-
tween 2.75 and 3.25 percent,
according to people familiar
with the private placement
The five-year notes, ex-
pected to be priced late to-
day via Bear Stearns, are
also expected to include a
conversion premium of 20
to 24 percent, sources said. -
Computer Network's
stock must appreciate by 175
percent from the conversion
price during the first three
years for the company to
call, or buyback, the bonds.
The Plymouth -based
company plans to use the
proceeds for general work
ing capital purposes, in-
cluding potential additional
acquisitions.
Doiv Jones News Service
tr>v Rpp: • '2000%deo
Revenue $2,666.9 $4,045.5 -04.1
worn 1 2,546.2 130.0 -
Eatn/dlare _011 0.01
12 months
Revenas $16,079.8$14,584.6 +3.4
Cin 1 4,843.6 504A -
Eam/share-
Figures In thousands exceptfor eamings per
share.
Entegris Inc., Chaska,
and Dainippon Ink and
Chemicals, Japan, said
they have a new patent
licensing agreement.
Under the agreement,
Dainippon will be li-
censed to make, use and
sell integrated circuit
trays, which employ En-
tegris' patented design.
The trays are used to pro-
tect and transport inte-
grated circuits for the
semiconductor industry.
Glacier Technology Inc.,
pINmouth, said it has an
exclusive agreement tc
sell industrial fan, blowel
and ventilation product
made by Penn Ventila
tion and Bayley -Lau In
dustries.
Re
IM
Es
1.
Rc
in
El
Fr
sf
Aetriurn Inc.,
AVA Makes electromechanical hart-
dGnge i
4th,quarterFY2001,12/31
2001 2000%dmg.
Revemrs $3,764.0$13,830.0-72.8
ops. Ret --17.574.0 -
hmme* -4,358.0-17,574.0 -
Eam/ems* 0.47 1.85 -
12 months
Revenue $20,014.0$46,052.0 -56.5
Income* -10,669.0-22,529.0 -
Earn/dinar-* 1.13 2.38 -
F%ures in tta hands except for earnings per
share.
Fourth quarter 2001, the company incurred
restnxturingcharges of $677,000 along with
additional accruals for future rentals related to
idle facilities and a charge of $2.7 million for
excess inventories• The net loss reflects these
unusual charges. Fourth-quarter 2000 lrf
dudes $1.2 million of inventory write own
and restructurhg charges related primary to
the close of the comparys San Diego facility
and a valuation allowance of about $16.9 ml -
bon against deferred tax assets. The valuation
allowance is a noncash charge that does not
affectcashilow.
Ir
p
c
Curative Health Services
CURE) Provides disease management
services and specialty pharmacy ser-
vices.
4th quarter FY2001,12/31
2001 2000 %chng.
Revenue $20.4 $15.0 +36.1
Income -18.9 2.7 -
Earn/share 2.58 -0.34 -
12 months
Revoree $81.7 $77.7 +5.0
Mreome 18.2 1 -
Eem/dWe 2.54 -0.01
Figures in millions exoeptfor earnings per
share.
The REA LTO
Published monthly except
combined issues for May.
June, July -August and
November -December.
Minneapolis Area
Association of REALTORS',
5750 Lincoln Drive,
Minneapolis, MN 55436
Telephone: 952.933.9020
Fax: 952.933.9021
Office hours:
8:00 a.m. to 4:30 p.m.,
Monday through Friday,
except holidays.
Subscription rate: Members:
12 a year paid with dues.
Others: $30 a year.
USPS 351160
ISSN 1054-9684
Periodicals postage paid at
Minneapolis, Minnesota and
additional mailing offices.
POSTMASTER: Send
address change to:
The REALTOR',
P.O. Box 9570,
Minneapolis, MN 55440-9570
Minneapolis Area
Association of REALTORS•
Joanne Smaby, CBR, CRS,
CSA, GRI
President
Todd Grill, ABR, CRB,
CRS, GRI
President-elect
Deb Greene, ABR, CRS,
GRI
Treasurer
Lynn Leegard, GRI
Secretary
Mark D. Allen
Chief Executive Officer
2.
MINNEAPOLIS
u...—nT
REALTORS
fg8hsuvAX"U"
2001 Year-end Market Report - January 15, 2002
press conference
At the January 15 press conference MAAR focused media attention on the
following talking points.
Why real estate ownership?
The right to own property -
Homeownership" - is one of the corner-
stones of American culture and
economy.
Homeownership in America has
reached an all time high, and the
Midwest is leading the country in this
area. Currently just over 70% of Mid-
west households own their own home.
REALTORS's believe that there has
been an increased focus in "hearth and
home" over the past few years. This may
be especially true after the September
11 attack on America.
The September 11 attack had little if
any effect on the Twin Cities residential
real estate. Any measureable effect was
very brief and lasted less than one
week.
Historically, homeownership has proven
itself to be one of the most secure and
profitable investments. In regards to
the recession, this has most definitely
been proven true over the past two
years.
Real estate has been one of the few
sectors that have been insulated from
the current recession. Historically,
Twin Cities residential real estate
values have survived recessionary
times.
Market conditions
While fourth-quarter buyer activity has
been at a record high, the increase of
the number of properties for sale has
created a more balanced market.
REALTORS® are projecting a 10%
increase in home prices in 2002. The
Twin Cities will most likely experience
a hot spring market, with multiple
offers on homes for sale.
Now is a great time to purchase a
home as prices begin their upward
climb most often early in the year. By
purchasing now, buyers may avoid
looming real estate price increase. In
2002, REALTORS® are projecting a
10% increase in home prices.
Because the current market is very
active and strong, now is a great time
2001 Market Activity
continued on page 14
2 • The REALTOR'° • February 2002