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HomeMy WebLinkAbout2011-04-11 BOARD OF REVIEW0 0 I- 0 0 3oarcL of A ppe.avb a ,apr�,la, 2011 TABLE OF CONTENTS SECTION 1 BOARD OF APPEAL AND EQUALIZATION - GENERAL 1. Letter of Transmittal ......................................................... ............................... 1 2. Board of Appeal and Equalization Rules and Procedures ......... ............................... 2 r 3. Local Board Meeting/Duties of the Local Board ...................... ............................... 4 SECTION 2 ASSESS MENTIAPPRAISAL INFORMATION 4. Edina 2011 Assessment Summary ..................................... ............................... 10 5. Sample Real Estate Valuation Notice .......................:.......... ............................... 16 6. Estimating Market Values ....................................................... ............................... 18 7.. Historical Changes in Market Value .................................... ............................... 21 8. Residential Assessment ................................................... ............................... 25 9. Apartment and CommercialAndustrial Assessment ................ ............................... 40 10. 2011 Assessment Calendar .............................................. ............................... 42 SECTION 3 PROPERTY TAX INFORMATION 12. Simplified Chart of Property Tax Process ............................. ............................... 43 13. Property Tax Refunds and Programs .................................. ............................... 44 14. Market Value Exclusion on Homesteads of Disabled Veterans ....... ............................... 45 15. Property Taxation 101 ..................................................... ............................... 16. Property Tax Statement 101 ................................................... ............................... 51 SECTION 4 MISCELLANEOUS INFORMATION 18. Sale and Resale Analysis Summa . ....................... 55 19. 2010 Residential Real Estate Activity Report ........................ ............................... 58 20. "Joint Advisory- Foreclosures and the Assessment Process" ........................................... 76 24. Hennepin County Foreclosures 2007 through 2010 ..................... ............................... 84 23. " Home Prices Up: Appraisals are Down" .................. ............................... 85 24. "Minnesota Home Sales Rise" ................................................ ............................... 87 24. "The Slow Comeback" .......... ............................... ................ 89 pp I p- DATE: April 4, 2011 City of Edina TO: Edina Board of Appeal and Equalization Members Edina City Council Members FROM: Robert C. Wilson, City Assessor Beginning March 10, 2011 approximately 20,000 valuation notices were mailed to Edina property owners. Since this time, the assessing department has responded to over 230 calls from owners with questions and concerns regarding their new valuation notice. The review process is a key aspect of the mass appraisal system. Over the last three weeks, the assessing staff has reviewed the valuations on over 110 properties. When there is evidence that a property has been overvalued, its market value has been adjusted. These reviews have resulted in changes to approximately 47% of the properties. In the instances where the appraiser and property owner cannot come to a mutual agreement on valuation, the Board of Appeal and Equalization is one of several avenues for the owner to make an appeal. The following material has been prepared for the Board's meeting on Monday April 11, 2011. The Edina Assessing Department consists of Liz Lopez, Assessing Technician; Mitzi Wicklund, Assessing Technician; Adrienne Garcia, Appraiser; Bev Moos, Appraiser; Rick Nelson, Appraiser and Bob Wilson, City Assessor. At the initial meeting, Board members will hear testimony from property owners and assessing staff will be available to provide information and answer questions. No decisions will be made during this meeting. The assessing staff will prepare property review reports and provide copies to Board members prior to the April 25th reconvened meeting, when the Board will make their final decisions. It has been the policy of the Board to sustain the assessor's valuations on commercial, apartment and industrial properties, and on all appeal applications received after the April 1 st deadline. This allows the property owner to present their case to the County Board of Appeal and Equalization for their consideration. City Hall 4801 WEST 50TH STREET EDINA, MINNESOTA, 55424 -1394 www.cityofedina.com 952 - 927 -8861 FAX 952 - 826 -0390 TTY 952 - 826 -0379 City of Edina BOARD OF APPEAL AND EQUALIZATION RULES AND PROCEDURES . 1. GENERAL The following rules and procedures shall govern the Board of Appeal and Equalization in the exercise of the authority and responsibilities granted to it pursuant to Chapter 274 of the Minnesota. Statutes. 2. MEETINGS a) The board shall conduct annual meetings and hearings in accordance with Minnesota Statutes, Section 274.01, subd. 1, and make preliminary determinations of property classification and assessment matters. The board meetings shall be conducted in the City Council Chamber of the City Hall. The' City Clerk shall give published and posted notice of the meetings at least ten (10) days in advance thereof. b) All meetings of the board shall be considered open meetings and shall be conducted in accordance with the provisions of the Minnesota Open Meeting Law (Minnesota Statutes, Section 471.705). c) The board shall elect a Chairperson who shall preside at all_ Board meetings, and shall have duties and responsibilities specifically prescribed by any applicable laws and regulations. d) There must be at least one member at each meeting, who has attended an appeals and equalization course required by M.S. 274.014,, within the last four years. e) Board meetings shall be conducted in accordance with Robert's Rules of Order. f) Three (3) members of the„ board must be present for a quorum to exist in order to conduct board reviews. Formal action may be taken by a majority of those members present at a meeting. g) Board meetings, shall be attended by the city assessor, and /or a designated city staff member, and a recording secretary. The board may also request the advice of the city attorney on legal issues which arise. 2 Local Board Meeting Who must attend the meeting Per Minnesota Statutes, Section 274.01, subdivision 1, paragraph a, the town board of a town or the council or other governing body of a city is the Local Board of Appeal and Equalization, except in the following situations: • Cities whose,charters provide for a board of equalization; • Cities or towns that have transferred their local board duties to the county (see Chapter 5);, • Cities with Special Boards of Appeal and Equalization appointed by the governing body (see Chapter 5); or • Cities or towns whose local board duties have been transferred due to noncompliance with the training requirements. When a Local Board of Appeal and Equalization convenes, a majority of the members (quorum) must be in attendance in order for any valid action to be taken (see Chapter 4 for more information about quorum requirements). ..The -local assessor is required by law to be present with his/her assessment books and papers. The local assessor is required to take part in the proceedings to support his values or recommend a change, but the local assessor has no vote. He/she should be prepared to explain how the value was determined, and in doing so, the assessor should be able to describe the characteristics of the property, such as: location and neighborhood; public or private restrictions on the property; building type and size; quality of construction; age' of the structure; physical condition of the structure; total number of rooms and total number of bedrooms and bathrooms; and market conditions, etc. The local assessor should be knowledgeable about the local real estate market and the property in the area. While it isn't the goal of the assessor to influence the board, the assessor should provide factual information to support the value and classification or to support a recommended change to a subject property. The local assessor also should be able to explain how the property classification was determined. In addition to the local assessor, the county assessor or one of his/her assistants is required to attend. The board should ask the local and/or county assessors to present any tables that have been prepared, making comparisons of the current assessments, in the district Either the local or county assessor is required to have maps and tables relating particularly to agricultural land values for the guidance ofthe Local Board of Appeal and Equalization. The local board should be prepared to ask the local and county assessors questions, and assessors should be prepared to answer questions and provide infonmaton that will assist the board in its deliberations. Meeting dates. and times for the local board The meeting.date and time for the Local Board of Appeal and Equalization is set by the county assessor. The county assessor must provide written notice of the date and time to the city or town clerk by February 15 of each year. The clerk shall publish and post notice of the meeting at least 10 days before the date of the meeting. The Local Board of Appeal and Equalization meeting must be held between April l and May 31 of each year (unless the provisions of a charter provide otherwise)..The local board must conduct its business and adjourn within 20 days of the date stated in the published notice. Upon request, the Department of Revenue (at its discretion) may grant extensions beyond the 20- day time period. No changes may be made by the local board after adjourning. The county assessor also may not make any changes in valuation or classification that are intended to correct errors in judgment by the county assessor after the local board has adjourned. However, the county assessor may make changes that are clerical in nature or changes that extend homestead treatment until . the tax extension date for that assessment year. A list of all the changes made' by the local board must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during-this period in those cities or towns that hold a local board must be sent to the county board no later than December 31 of the assessment year. El I Role of the local board in the assessment process Duties of the local board The local board is to determine whether all of the taxable property in,the town . or city.has.been properly valued and classified. All property is to be valued at its market value, and all property is to be classified according to use. It is assumed that the assessor has properly valued and classified all the property in the jurisdiction. The burden of proof rests with the property owner who must present factual evidence to disprove the assessor's value or classification. The complaints and objections of property owners - appealing individual assessments for the current year should be considered very carefully by the board. An appeal may be made in person, by letter, or through a representative of the owner. Written objections should be filed with the city or town clerk prior to the meeting of the Local Board of Appeal and Equalization and must be presented to the board for consideration while it is in session. The board must hear all complaints and examine all letters. Such assessments must be reviewed in detail, and the board has the authority to make corrections as it deems to be just The board may recess from day to day until all cases have been heard. The board should look for property or improvements that are not on the tax rolls. When property or improvements are missing from the tax rolls, an unfair burden falls. upon the owners of all property that has been assessed. If the board finds any property or improvements that are not on the tax I rolls, the board should place it on the assessment list along with its market value, and correct the assessment so that each tract or lot of real property and each article, parcel or class of personal property is entered on the assessment list at its market value. Changes Within 10 days of local board meeting Since the Notice of Valuation and Classification must be mailed to taxpayers at least 10 days prior to the meeting of the Local Board of Appeal and Equalization, the assessor should not make changes to the valuation or classification of a property within that 10 -day window without bringing the change to the local board for action. After receiving the notice, the property owner can contact the assessor to discuss questions or concerns. The assessor can make changes to the valuation or classification without bringing the change to the local board if a new notice is mailed to the property owner at least 10 days prior to the local board meeting. Oftentimes, the assessor will continue to review properties within 10 days of the local board meeting. However, if the assessor makes a change, that change should be brought to the local board for action. If the property owner agrees with the change, he/she does not need to personally appeal to the board. Instead, the assessor should present such changes to be voted on by the board. 6 What the board can do Reduce the value of a properly. The local board may reduce the value of a property if the facts show that the property is assessed at a value that is higher than its market value. All property is to be valued at its market value. It is assumed that the assessor has properly valued the property. The burden of proof rests with the property owner who must present factual evidence to disprove the assessor's value. Increase the value of a property. The local board may increase the value of a property if the facts show that the property is assessed at a value that is lower than its market value. The board also must base the decision to increase the market value on facts. All property is to be valued at its market value. It is, assumed that the assessor has properly valued the property. The board must rely on factual evidence to disprove the assessor's value. Before the board raises the market value of a property, it must notify the owner. The law doesn't 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'owner must be notified either in writing or orally.. He/she should be given a time to appear before the local board. After the hearing, the local board should make any corrections that it deems just. Add properties to the assessment list If the board finds that any real or personal property has not been entered onto the assessment list, the board shall place it on the assessment list along with its market value, and correct the assessment so that each tract,and lot of real property and all personal property is entered on the assessment list at its market value. Role of the local board in the assessment process Duties: Local and County Boards Local,Board of Appeal and Equalization Ensures, individual assessments within the jurisdiction are properly valued and classified. County Board of Appeal and Equalization Ensures equalization among individual assessments, between classes and. from jurisdiction to jurisdiction. a , What can local and /or county boards do? V ❑ Increase or decrease value individual property. - - - - -- ✓ Yes __ --._._ ,,,,__._._.__.._._....__.. ✓ Yes —.__. C3. .. - -� -- -- . -- - - Add properties to the assessment list. - - - -- — - ✓Yes No ❑ — - - -- Add improvements to the assessment list. ✓ Yes .._._._- __._...�....__.......�. ✓ Yes _Yes... O .. ...............__.._..-----.... �-........__..__........_........_....,.__....._........... Increase or decrease value for an entire property class. - - _ o - ... ...... ,,..__ ❑ - -- -.. __ .. - - - -- - - -..._ .. _... __ .... .. Change the classification of a property_ �__.._. _._ ✓Yes -- /Yes - - - -- -- What local and county boards cannot do: • Cannot change prior year assessments. • Cannot reduce aggregate assessment by more than 1 percent. ❑ Cannot exempt property. ❑ Cannot make change benefiting owner who. refuses entry by assessor.* ' %finnesota Statutes, Section 274.01, subdivision 1, paragraph b :states d a! the local board may not make an individual market value adjustment or classification change that ivould benefi( the property in cases where the owner or other person hawing control over the pl.oPu ry will not perMW the assessor to inspect the pr openy and the inter -ior of aty buildings or structures. The county board is not staftaorin)precluded, from making a change based on the property owner's refusal to allow the assessor access to view the property. 11m+ c'i�er simply becacse the statute does not explicitly preclude the county board from malting such a change, it is strongly recommended Hutt die cotr {nty board not grant any reduction in value until the property mvner has allowed the assessor access to V�eia the pr oper(y. It seems obvious that for an assessor to make a fair and knowledgeable value estimate, 11 she nnust first be aI /rna ed to view tine entire propel y. Until such access is granted; the county board should not grant a value reductiar. Recommendations for local board members Become familiar with sales information prior to local board meeting Most local board members aren't necessarily aware of current trends in the real estate market or trained in the field of appraisal. Therefore, advance preparation is essential to making informed, fair decisions on the appeals heard by the local board. 8 The county assessor (or the local or city assessor in some instances) should provide information on the real estate market in advance of the local board meeting. If this information isn't provided, the local board should request that the assessor provide the infonnation at least one week prior to the meeting so board members have time to review it. Role of the local board in the assessment process 2 SUMMARY The 2011 property assessment has been completed, and property owners received a Notice of Estimated Market Value in early March. The 2011 property assessment applies to property taxes payable in 2012 and reflects sales between October 2009 and September 2010. Key points of the 2011 property assessment include: N i O .1A The total estimated market value for Edina in 2011 is $9.23 billion, a decrease of approximately $181 million, or 1.9 percent less than the $9.44 billion total in 2010. Approximately 80 percent of the total market value comes from single family property, while 20 percent comes from commercial, industrial, and apartment properties. 10.00 9.0( 8.0( 7.0( 6.0( 5.01 4.01 3.01 2.0 1.0 2001 2002 2003 2004 2005 2006 zuui cvvo f.VVU Assessment Year • Average 2011 market value changes are listed below for the major property classifications: Single family residential -2.7% Doubles 0% Zero -Lot Lines -5.0% Townhomes -3.9% Condominiums -5.5% Commercial -1.4% Industrial 0% Apartments 0% 10 In a recent reversal from the previous year, commercial values have held more of their value than residential properties. The impact of this trend will be to shift back some of the property tax burden to commercial properties from residential. For 2011, most single - family residential properties received statistical adjustments of 0 percent to -10 percent. This is the fourth year of a decrease in residential valuations. These adjustments are based on the specific characteristics of the property, its location, and comparisons to actual selling prices. This approach results in similar market value adjustments for like properties throughout the city. Comparisons with other cities for 2010 indicate an average decrease of 3.0 percent for southwestern suburban cities. Edina's decrease of 2.7 percent for single - family homes is in the middle of the range for neighboring communities. Distribution of the 2011 percentage changes in value by residential property type: Single Family _3% 7% 3% 21% \ 32% 11 a Increase ■No Change [I Decrease -1 to -3% O Decrease -4 to -6% ■Decrease -7 to -10% E) Decrease > -10% 2011 Assessment Condominiums 1% 44 4% 40% Townhomes 1% 12 El Increase ■No Change oDecrease -1 to -3% 0 Decrease -4 to -6% ■Decrease -7 to -10% oDecrease > -10% olncrease ®No Change o Decrease -1 to -6% o Decrease -7 to -10% ■Decrease > -10% The accuracy and equity of the property assessment are evaluated through two statistical measures: the sales ratio and the coefficient of dispersion (COD). The sales ratio is the assessor's estimated market value divided by the actual selling price. For 2011, Edina's overall sales ratio is 95.7 percent, indicating a very accurate assessment. The COD measures how far the assessor's market values deviate from the median ratio. For 2011, the COD is 6.4 which demonstrates an equitable assessment. Adjustment to Sales Ratio Relative to Hennepin County Target - The standard that assessors use to measure the accuracy of the assessment is the change in sales ratio for the state mandated sales study period of October 2009 through September 2010, not the annual change in the median sale price of properties. For the 2011 assessment, the ratios for sales that occurred between October 2009 and September 2010 were as follows: Single- family residential 97.8% Doubles 84.8% Zero -lot lines 99.5% Townhouses 98.1% Condominiums 102.3% The target ratio defined for each property type by Hennepin County is 95 percent. As a result, it was necessary for staff to respond by decreasing most residential values for 2011. Changes to townhouse and condo properties were made by analyzing sales from each individual complex. Value changes for single - family properties were made based on a variety of factors, including location, style, quality class, and price point. The appeals process is an important part of the annual property assessment. Residents having questions about their 2011 Notice of Estimated Market Value are urged to contact the assessing department. This allows staff to discuss the property characteristics and, where needed, conduct an on -site review. Property owners must complete an application by April 1, 2011, to appeal their value to the Local Board of Appeal and Equalization, which convenes April 11, 2011. 13 2005 2006 2007 2008 2009 2010 2010 SALES RATIO 95.6 96.1 95.0 96.0 95.5 95.7 95.7 COD 7.6 7.2 6.8 5.7 5.8 6.1 6.4 Adjustment to Sales Ratio Relative to Hennepin County Target - The standard that assessors use to measure the accuracy of the assessment is the change in sales ratio for the state mandated sales study period of October 2009 through September 2010, not the annual change in the median sale price of properties. For the 2011 assessment, the ratios for sales that occurred between October 2009 and September 2010 were as follows: Single- family residential 97.8% Doubles 84.8% Zero -lot lines 99.5% Townhouses 98.1% Condominiums 102.3% The target ratio defined for each property type by Hennepin County is 95 percent. As a result, it was necessary for staff to respond by decreasing most residential values for 2011. Changes to townhouse and condo properties were made by analyzing sales from each individual complex. Value changes for single - family properties were made based on a variety of factors, including location, style, quality class, and price point. The appeals process is an important part of the annual property assessment. Residents having questions about their 2011 Notice of Estimated Market Value are urged to contact the assessing department. This allows staff to discuss the property characteristics and, where needed, conduct an on -site review. Property owners must complete an application by April 1, 2011, to appeal their value to the Local Board of Appeal and Equalization, which convenes April 11, 2011. 13 The Residential Real Estate Market - The Minneapolis Area Association of Realtors (MAAR) reported that the median sales price in Edina was $339,000 in 2010, an increase of 4 percent from the 2009 median of $325,000. These sales include single - family, doubles, zero lot - lines, condominiums and townhomes. Number of Sales by Sales Price 0 d 200 CO 150 0 d 100 M E 50 Z 0 Less than $200,000 to 400,000 to $60u,uuu to greater inan $199,999 $399,999 $599,999 $999,999 $1,000,000 a2009 o2010 Edina had the lowest percentage of lender- mediated sales in the county at 13 percent. Lender mediated sales include foreclosures and short sales. Short sales occur when the lender allows the property to be sold for less than the outstanding mortgage balance. Some cities have shown a significant decline in housing values and have been greatly impacted by the high volume of foreclosures. MAAR data for Brooklyn Park for instance, indicates that 56 percent of the sales were lender mediated. (see page 15 ) 14 Changes in Median Sales Price by Area 2009 to 2010 All Sales Lender - Mediated Sales d . le -famil condos and townhomes ,,,�,C' sm 2010 Change Median Change 01 of #Sales from Sale from ll 2009 Price 2009 Sales Bloomington 285 -20% $158,000 0% 39% East Bloomington 509 -6% $206,950 -2% 27% West Brooklyn 439 -35% $110,000 +22% 54% Center Brooklyn 1,137 -26% $141,000 4% 56% Park Eden Prairie 661 -15% $265,000 6% 28% Edina 646 0% $339,000 4% 13% Golden 195 -24% $235,000 7% 26% Valle Hopkins 180 -8% $150,350 -9% 46% Maple 934 -8% $250,000 14% 25% Grove Minnetonka 558 -12% $265,000 10% 23% New Hoe 181 -20% $148,450 -6% 40% Plymouth 774 -8% $249,000 -2% 40% Richfield 355 -36% $160,000 -3% 36% St. Louis 505 -25% $213,703 0% 20% Park Source: Regional Multiple Listing Service 15 City of Edina_ , Minnesota 4801 West 50'' Street - Edina, MN 55424 -1394 ■ (952) 826 -0365 o FAX: (952) 826 -0389 ■TTY: (952) 826 -0379 2011 Notice of Valuation and Classification For taxes payable in 2012 — This is NOT a bill Property Identification Number: 18- 028 -24 -31 -0000 Property Location: 1234 Oaklawn Avenue Joe Smith 1234 Oaklawn Avenue Edina, MN 55424-1924 This form,isto notify you of the market value and classification of,your property.for assessment year 2011. The property taxes you pay in 2012 (nexiyear) will be based on this valuation and.classification. The prior year data has been included for comparison purposes. Assessment Year 2010 Assessment Year 2011 (For Taxes Payable in 2011 j) (For Taxes Payable in 2012) Property Classification: RESIDENTIAL RESIDENTIAL HOMESTEAD HOMESTEAD Estimated Market Value: Value of New Improvements: This Old House Exclusion: Veterans Market Value Exclu Taxable Market Value: Est. Market Value Deferred: IMPORTANT INFORMATION - Appealing the Value or Classification of Your Property $383,000 $363,000 000 $363;000 1 Appeal Option -1: Informal Appeal — Contact Your Assessor If you have questions or disagree with the classification or estimated market value for your property for 2011, please contact your assessors office first to discuss your concerns. Often your issues can be resolved at this level. You may contact the Edina Assessor's Office at (952) 826-0365. Properly information can be viewed at the assessor's office between 8:00 and 4:30 Monday through Friday. Appeal Option 2: Formal Appeal - Boards of Appeal and Equalization Step #1 — City. of Edina Board of Appeal and. Equalization.' If you believe your value or classification is incorrect, you may bring your case to the Local Board of Appeal and Equalization. You may appear in, person, by letter, or' be represented by an authorized agent. Please call your Assessor's Office first, an application is necessary: A. is required that you first attend the Local Board prior to attending the County Board of Appeal. The Board convenes at 5:30 PM on Monday,. April 11, 2011 in the :Council Chambers, City Hall, 4801 West 50th Street, Edina, MN 55424. If wish to make an appeal before the Local Board an application is reguired no later than Friday, April 1, 2011. Step #2 - Hennepin County Board of Appeal and Equalization The CountybBo ird of Appeal and Equalization begins omJune 13, 2011, at the Hennepin County Government Center, 300 S Sixth St., Minneapolis,-:MN 55487. Application is required no.later than May 25, 2011. To appear before the County Board you must have_ appeared before the City of Edina Board of Appeal and Equalization. You must call in advance to get on the agenda: Phone: (612)348 -7050 or [TTY (612) 348 -3461 Teletype]. Appeal Option 3 — Minnesota Tax Court Depending on the type of appeal, you may take your case to either the Small Claims Division or the Regular Division of Tax Court. You have until April 30, 2012 to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your 2011 valuation and classification. For information on the Tax Court, contact the Minnesota Tax Court: Phone: 651 - 296 -2806 [TTY Relay (800) 627 -3529 Teletype] Web site: http: / /www.taxcOurt.state.mn -us For additional information concerning property's valuation or classification, you can access the Hennepin County website at: http•/ /www.hennepin.us/ Property classification information can also be accessed through the Department of Revenue website at: http,//www.taxes.state.mn.us/taxes/ 16 911 o e ���, City of Edina �J( )0 4801 West 50�" Street • �• Edina, MN 55424 -1394 IMPORTANT: Property Tax Information Valuation Notice Joe Smith 1234 Oaklawn Avenue Edina, MN 55424 -1924 IMPORTANT INFORMATION AND DEFINITIONS This, form. is to notify you- of the. market value and classification of your property for assessment year 2011. The property taxes you will pay in 2012 (next year) will be based on this valuation and classification. If you believe your valuation and property class are correct, it is not necessary to contact the assessor or attend the meeting listed on this notice. If the property information is not correct, you disagree with values, or you have other questions about this notice, please contact your assessor to discuss any questions or concerns. Often your issues can be resolved at this level. If your questions or concerns are not resolved, more formal appeal options important information about the formal appeal process. are available. Please read the back of this notice for Property Classification The statutory classification that has been assigned to your property based upon your use of the property. A change in classification of your property,can have a significant impact on the real estate tax payable. Please compare the 2010 and 2011 classifications listed on the other side of this statement. Estimated Market Value This value is what the assessor estimates your property would likely sell for on the open market. Value of New Improvements This is the assessor's estimate of the value of new or previously unassessed improvements you have made to your property. This OId,House Exclusion This program expired with the 2003 assessment. However, property may still be receiving the value exclusion under this program. Qualifying properties with improvements that increased the estimated market value by $5,000 or more were eligible to have some of the value deferred for a maximum of 10 years. After this time, the deferred value is phased in. Disabled Veterans Homestead Market Value Exclusion Qualifying disabled veterans may be eligible for a. valuation exclusion on their homestead property. Taxable Market Value This is the value that your property taxes are actually based on, after all reductions, exclusions, exemptions and deferrals. Your 2011 Value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes.in 2012. Market Value Deferred -Green Acres and Open space Only applies to agricultural and open space property that is facing increasing values due to development pressures not related to the agricultural or open space value-'of the' land. This value is determined by looking at what comparable agricultural or open space land is selling for in areas where there is not development pressure,,The taxes on the higher value are deferred until the property is sold or no longer qualifies for the program. Market Value Deferred-;Plat beferment For land that has been recently platted (divided into individual lots) but not yet improved with a structure, the increased market value due to platting is phased in over time. If construction begins,° or if a lot is sold before expiration of the phase in period, the lot will be assessed at full market value in the next assessment. 17 ESTIMATING MARKET VALUES The purpose of the assessment process is to make an accurate estimate of the market value of each parcel of property, every year. Doing so requires current information about the properties being assessed, and about the local real estate market. The Edina Assessing Office maintains a record of every property in the City, including its size, location, physical characteristics, and condition. This record is updated whenever new information becomes available — as the result of the five -year reappraisal, or when improvements are made to the property, or when the property owner requests a physical review. This information is computerized, allowing statistical comparisons of properties by type and location. It is important to know that assessors must out of necessity use a mass appraisal process for valuing residential property, and the mass appraisal process is different from the individual appraisal system used by banks, mortgage companies and others. The mass appraisal system used in Edina involves the comparison of properties with actual residential market sales from the same neighborhood and throughout the city. New houses, additions,. and remodeling are valued based on their individual characteristics and the current costs of. construction. Having the local assessment system operate effectively requires as much information about the local real estate market as possible. The Assessing Office makes a record of all property sales, using the Certificate of Real Estate Value (or CRV) filed at Hennepin County for each property sale. This. information is augmented with regular sales information obtained from the Multiple Listing Service (MLS) and other'sources. The Assessing, staff also examines multiple sales - properties that have sold more than once over a period of a few:years. Aftertaking into account any physical changes that may have occurred, the , Assessor is able to determine what is happening to the real estate market over that period of time. In ,all cases, the sales information collected by the Assessing Office is closely scrutinized. Evidence suggesting a forced sale, foreclosure, a sale to a relative, or anything but an arms - length transaction results in the sales information being discarded. This is important, because the real estate sales information constitutes the data -base for the statistical comparisons necessary to make the property assessment. 18 The accuracy of the Assessing Department's estimated market values is measured by the sales ratio, which is simply the Assessor's estimated market value divided by the actual selling price. For example, a house having its estimated market value assessed at $270,000 and an actual selling price of $300,000 gives a sales ratio of 90.0. For cities in Hennepin County, the accepted range for the median sales ratio measurement is 90 to 105. In other words, the median (or midpoint) of the sales ratios for all properties sold should fall within 90 to 105. A sales ratio of slightly less than 100 is desirable in order to avoid having a great many properties valued at more than their actual market value. If the median sales ratio were at 100, as shown at the left below, it would mean that half the properties were assessed at less than market value and half were higher, with too many over the actual market value. On the other hand, as shown at the right below, a sales ratio of 95.0 means half the properties are below by 9t e o /Assessoalat market mo a thavalue, n actual market higher, value. a relative low number are valued Therefore, the acceptable range is 90 to 105, with a target of 95.0. Edina's 2011 assessment results in a sales ratio of 95.7. SALES RATIO: MEDIAN 100 95 97.5 102.5 105 HALF THE VALUES ARE OVER 100% 19 MEDIAN 95.0 90 92.5 97.5 100 FEW VALUES ARE OVER 100% A measure of the equity of the property assessment is the coefficient of dispersion, which measures the average deviation or dispersion from the midpoint, or median. The more closely the Assessor's values are grouped around the midpoint, the more equitable the assessment. This is true because relatively few properties have been valued too high, or too low, compared to actual selling prices. For the annual property assessment, a coefficient of dispersion of less than 15 is deemed acceptable and less than 10 is of 6.4. considered excellent. Edina's 2011 assessment reflects a coefficient of dispersion COEFFICIENT OF DISPERSION: MEDIAN 95.0 VALUES ARE DISPERSED FROM MEDIAN (HIGH COEFFICIENT) MEDIAN 95.0 NE VALUES ARE GROUPED CLOSE TO MEDIAN (LOW COEFFICIENT) The review process is a key aspect of the mass appraisal system. Because some properties receive statistic -based adjustments to market value, the review allows the assessing staff the opportunity to individually examine certain properties. Where there is evidence a property has been overvalued or valued inequitably, its market value can be readjusted to an appropriate amount. A property owner who is not satisfied with the assessing staffs review may make an appeal to the Local Board of Appeal and Equalization, which meets on April 11, or make an appeal directly to state tax court. HISTORICAL CHANGES IN MARKET VALUE Edina has typically experienced steady growth in the market value of real property in the community since the mid 19901s. This has occurred through the construction of new single - family, multi - family and commercial properties as well as the appreciation of existing properties. The chart below shows the amount of market value change from year to year, and the proportions of the change attributable to new construction and appreciation. As indicated, the city's 2011 assessment is the third year the total market value for the city has declined. The value decrease is negated somewhat by new construction and improvements which amounts to $64,768,100 for the 2011 assessment. The improvement amount for single - family properties was $38,686,400 or 60% of the total new construction. CITY OF EDINA GROWTH 1997 -2011 21 MARKET VALUE NEW CONSTRUCTION VALUE INCREASE TOTAL GROWTH YEAR 1997 $4,257,192,500 $4,526,862,400 $4,904,869,300 $5,457,802,200 $6,230,194,800 $7,081,684,800 $7,487,906,000 $8,073,198,900 $8,693,3451900 $9,598,697,600 $9,984,799,500 $10,101,311,700 $10,054,504,600 $9,446,343,100 $9,239,541,600 0.8% 1.1% 1.5% 1.5% 1.4% 0.7% 1.0% 1.0% 0.7% 1.1% 1.3% 1.7% 1.9% 0.7% 0.7% 4.1% 4.4% 6.9% 9.9% 12.8% 13.0% 4.8% 6.8% 8.0% 9.3% 2.3% -0.3% -2.0% -5.7% -2.6% 4.9% 5.5% 8.4% 11.4% 14.2% 13.7% 5.8% 7.8% 8.7% 10.4% 3.6% 1.4% -0.1% -5.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 21 The first graph (p. 23) compares the annual change in property type growth over the past ten years for apartment, commercial, industrial and residential properties in Edina. The second chart (p.23) compares market values and tax capacities by property class. Although residential property accounts ,for. 80% of market value, the property tax is based on tax capacity, and for 2011 residential property is 70% of the total tax capacity. Commercial /industrial and apartment properties make up 20% of market value and approximately 30% of the total tax capacity. The third chart (p.24) illustrates the changes in tax capacity by property class over the past ten years. Changes made by the Legislature starting in 2001, to the classification system, have resulted in property tax shifts. Commercial, industrial, and apartment properties received significant reductions in their class rates which have resulted in residential properties picking up a greater share of the property tax burden.. This changed in 2007, when the growth in commercial properties exceeded the residential growth and the tax burden shifted back slightly toward commercial properties. In 2009 and 2010 there was a slight shift back to residential properties and for 2011, the shift is back to commercial. The fourth chart (p.24), compares the changes in total market value and total tax capacity for the city, over the past ten years. The total growth in market value is up 48 percent and the tax capacity is up 54 percent. 22 CITY OF EDINA PROPERTY TYPE GROWTH tAPAR� "r "T rn�A�AFRCIAI INDUSTRIAL — RESIDENTIAL 25.0 20.0 15.0 w U 10.0 2 U F- Z 5.0 w U a 0.0 -5.0 -10.0 15.( 2001 2002 2003 2004 2005 20uti zuui YEAR CITY OF EDINA Market Values vs. Tax Capacities by Property Class 2011 Commercial/ Industrial 16% $1,469 Apartments Residential 4% 80% $365 $7,403 2011 Commercial/ Industrial 26% $29 Apartments Residential 4% 70% $4 $78 2011 Total Market Value: 2011 Total Million Capacity: $9,237 Million Values in Millions of Dollars 23 CITY OF EDINA TAX CAPACITY BY PROPERTY CLASS 2001 -2011 80.00% 60.00% Percentage of Total Tax 40.00% Capacity 20.00% 0.00% 2001 2003 2005 2007 2009 2011 Assessment Year ❑ Residential ❑ Comm /Ind ❑ Apts I GROWTH IN TOTAL MARKET VALUE vs. TOTAL TAX CAPACITY 2001 -2011 $12A00 $10.000 $8,000 c $6.000 $4,000 $2,000 $0 a o �o� °oti °o l��,'L°oh I? I°° 1P If, Io° If, 1P Assessment Year Total Increase in Market Value 48% 24 $140 $120 $100 a c $80 i $60 M $40 $20 $0 yo° yo° yo° ,yob e�o+ e le 4, ,yo no Assessment Year Total Increase in Tax Capacity 54% RESIDENTIAL ASSESSMENT Edina Single- Family Residential Sales 2002 -2010 — which indicates the median and average sales price for the last nine years EDINA SINGLE - FAMILY RESIDENTIAL SALES BY CALENDAR YEAR The median sale price (the point where half the homes sell for more and half for less) for single- family homes that sold in 2010 is $429,040. This is a increase of 10% from the median sale price in 2009 of $389,950. Edina Single - Family Houses 2003 -2009- compares the growth in the average and median sale price with the estimated market value over the past seven years. The 2010 median estimated market value is $403,100. EDINA SINGLE FAMILY HOUSES $700,000 $600,000 w $500,000 ,p1_. —+— Ave SP 63$400,000 Median SP 1t- a $300,000 Median EMV w $200,000 J N $100,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 YEAR 25 MEDIAN AVERAGE # OF SALES YEAR 2003 $360,000 $389,900 $468,968 605 _ 2004 $498,701 583 2005 2006 $425,000 $510,987 492 $469,000 $568,985 474 2007 $437,250 $595,622 414 2008 $450,080 $558,005 363 2009 $389,950 $494,851 317 2010 $429,040 $524,942 292 The median sale price (the point where half the homes sell for more and half for less) for single- family homes that sold in 2010 is $429,040. This is a increase of 10% from the median sale price in 2009 of $389,950. Edina Single - Family Houses 2003 -2009- compares the growth in the average and median sale price with the estimated market value over the past seven years. The 2010 median estimated market value is $403,100. EDINA SINGLE FAMILY HOUSES $700,000 $600,000 w $500,000 ,p1_. —+— Ave SP 63$400,000 Median SP 1t- a $300,000 Median EMV w $200,000 J N $100,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 YEAR 25 RESIDENTIAL ASSESSMENT (continued) For the 2011 assessment, 312 residential sales which occurred between October 2009 and September 2010 were analyzed both for market trends as well as the assessment ratio (assessor's value divided by sale price) on the sales. For 2011, most residential properties received statistical adjustments from 0 to -10 %. These adjustments are based on the specific characteristics of the property, its location, and comparisons to actual selling prices. This approach results in similar market value adjustments for like properties throughout the city. Distribution of the changes in market value from 2010 to 2011 for Edina's 12,500 single - family homes: _ , 22 Single Family oa_ 55% The following pages include: 5% ■ Increase ■ No Change ❑ Decrease -1 to -3% o Decrease 4 to -6% ■ Decrease -7 to -10% ■ Decrease > -10% 1. District Maps —which shows Edina's 41 geographic districts 2. Qualifying Single Family Residential Sales from January 2010 to December 2010 -which shows individual sales by District 26 NW Districts All Other Parcels 21 22 23 O24 25 ' 30 - 31 O 33 ® 34 - 35 - 35 37 _ 42 t S Districts All Other 15 ® 15 17 =18 19 - 20 O 26 27 C 28 ® 29 38 M 39 = 40 Residential Parcels by District city of Edina Assessing Department 27 NE Districts = All Other Parcels ® 01 02 O 03 M 04 05 06 - 07 I_J 08 09 10 11 12 - 13 14 Northwest Assessing Area 11 Northeast Assessing Area t� -_ W a�,C O It FA v Mud IMM :'11111■. ■ �IIWCC-a�,����� -- 22 Northeast Districts mask highway All other Parcels 01 t�(J 02 03 04 05 - 06 - 07 08 ® 09 10 11 O 12 ® 13 14 m a CD C LL LL 29 City of Edina Assessing Department South Assessing Area UW MIM City of Edina Assessing Department 0000 South Districts All Other Parcels 15 16 17 18 19 20 26 N 27 28 M 29 =38 39 MM 40 City of Edina Assessing Department 0000 City of Edina Qualifying Sales by District for Calendar Year 2010 District Address Sale Date Sale Price Morninpside 03 3 Edina Ct 06/24/2010 $ 01 4024 Kipling Ave 04/28/2010 $ 225,000 01 4244 Scott Ter 07/30/2010 $ 319,150 01 4047 Sunnyside Rd 10/26/2010 $ 3581500 01 4208 Scott Ter 06/28/2010 $ 362,000 01 4166 Monterey Ave 05/2012010 $ 365,500 01 4330 42nd St W 05/06/2010 $ 370,000 01 4360 Oakdale Ave 09/24/2010 $ 411,000 01 4013 Lynn Ave 10/27/2010 1 424,800 01 4414 Curve Ave 08/30/2010 $ 430,000 01 4416 Curve Ave 09/08/2010 $ 449,900 01 4021 44th St W 09/24/2010 $ 450,000 01 4750 44th St W 06/08/2010 $ 462,500 01 4212 Grimes Ave 05/03/2010 $ 470,800 01 4008 Grimes Ave 03/05/2010 $ 586,000 01 4213 Lynn Ave 11/01/2010 $ 592,000 01 4307 Morningside Rd 12/20/2010 - $ .655,000 01 4100 Lynn Ave 03/31/2010 $ . 875,000 White Oaks 02 4713 Meadow Rd 12/10/2010 $ 580,000 02 4005 48th St W 06/16/2010 $ 610,000 02 4717 Townes Rd 07/23/2010 $ 1,030,000 02 4703 Townes Rd 12/03/2010 $ 2,450,000 Country Club 03 4600 Casco Ave 09/07/2010 $ 522,000 03 3 Edina Ct 06/24/2010 $ 670,000 03 4507 Arden Ave 03/17/2010 $ 712,500 03 4600 Bruce Ave 01/28/2010 $ 739,500 03 2 Edina Ct 11/12/2010 $ 765,000 03 4617 Arden Ave 65/07/2010 $ 767,500 03 4617 Casco Ave 09/01/2010 $ 925,000 03 46.115 Arden Ave 08/06/2010 $ 960,000 03 4506 Moorland Ave 06/30/2010 $ 1,065,000 03 4504 Drexel Ave 1173072010 $ 1,120,000 03 4507 Drexel Ave 08/30/2010 $ 1,190,895 03 4612. Drexel Ave 10/28/2010 $ 1,349,000 03 4615 Browndale Ave 10/27/2010 $ 1,360,000 03 4604 Edina Blvd 09/30/2010 $ 1,500,000 03 4626 Drexel Ave 10/22/2010 $ 1,575,000 03 4504 Edina Blvd 10/29/2010 $ 1,750,000 Sunnyslope 04 4909 Sunnyslope Rd E 11/11/2010 $ 1,288,500 04 4905 Sunnyslope Rd E 08/27/2010 $ 1,600,000 31 32 City of Edina Qualifying Sales by District for Calendar Year 2010 District Address Sale Date Sale Price Indianola /Juanita 5108 Halifax Ave 12/15/2010 $ 442,000 05 05 5032 Halifax Ave 08/31/2010 $ 615,000 . Brucewood 5001. Bruce Ave 07/0112010 $ 605,000 06 06 .5007 Arden Ave 10/20/2010 $ $ 720,000 970,000 06 5229 Minnehaha Blvd 07/01/2010 $ 1,065,000 06 5018 Arden Ave 06/14/2010 07/30/2010 $ 1,095,000 06 5109 Wooddale Ave 08/23/2010 $ 1,750,000 06. 443152ndStW Golf Terrace 4510 Lakeview Dr 06/24/20,10 $ 875,000 07 N 58th Sher /So Har Pk 5432 France Ave S 07/30/2010 $ 252,350 08 4600 Tower St 06/14/2010 $ 355,000 08` 4616 Concord Ter 09/16/2010 $ 355,000 08 4505 Woodland Rd W 09/29/2010 $ 382,500 08 08 5613 St Andrews Ave 06/08/2010 $ $ 390,000 403,000 08 5628 Kellogg PI 02/19/ 2010 05/25/2010 $ 415,000 pg 5613 Wooddale Ave 07/09/2010 $ 465,000 pg 5700 Fairfax Ave 02/25/2010 $ 503,115 08 5217 Kellogg Ave 5509 Oaklawn Ave 08/16/2010 $ 575,000 08 4608 Oak Dr 10/22/2010 $ 593,000 08 5421 Kellogg Ave 12/17/2010 $ 658,000 08 4604 Oak Dr 12/03/2010 $ 675,000 pg pg 5512 Concord Ave 06/29/2010 $ $ 765,000 800,000 08 5520 Halifax La 08/11/2010 10/22/2010 $ 900,000 08 5501.Kellogg Ave 4507 56th St W 08/12/2010 $ 1,100,000 08 5420 Park PI 04/27/2010 $ 1,520,000 08 WoodlandlMoodcrest 73 Woodland. Cir 07/30/2010 $ 500,000 09 65 Woodland Cir 11/08/2010 $ 510,000 09 77 Woodland Cir 03/03/2010 $ 565,000 09 82 Woodland Cir 07/30/2010 $ 770,000 09 E France No 60th 5836 Abbott Ave S 04/29/2010 $ 185,000 10 5800 York Ave S 08/18/2010 $ 186,600 10. 5608 Zenith Ave S 08/24/2010 $ 190,000 10 5528,Xerxes Ave S 10108/2010 $ 214,500 10 5801 Chowen Ave S 08/13/2010 $ 224,000 10 5732 York Ave S 06/11/2010 $ 227,900 10 6628 Xerxes Ave S 02/05/2010 $ 229,664 10 5824 York Ave S 08/27/2010 $ 235,000 10 5432 Xerxes Ave S 09124/2010 $ 236,000 .10 5721 Drew Ave S 09/30/2010 $ 268,000 10 3324 56th St W 07/30/2010 $ 270,000 10 5705 Chowen Ave S 08/10/2010 $ 276,935 10 5804 Chowen Ave S 06/28/2010 $ 278,000 10 5621 Chowen Ave S 04/05/2010 $ 280,000 10 5900 Zenith Ave S 05/2612010 $ 290,000 10 5833 Ewing Ave S 05/25/2010 $ 329,900 10 5608 Beard Ave S 05/24%2010 $ 332,000 10 5700 Ewing Ave S 05/14/2010 $ 332,500 10 10 3725 54th St W 0811912010 $ $ 427,500 725,000 10 5505 Ewing Cir 07/01/2010 03/02/2010 $ 859,000 10 5617 Chowen Ave S 32 District E France So 60th 11 11 11 11 Halifax/Grimes 12 12 12 12 12 S 58th /Fairfax Area 13 13 13 13 13 13 - 13 13 13 So Jr High /Concord 14 14 14 14 14 14 14 14 14 14 14 14 14 Parnell /Ryan 15 15 15 Lake Cornelia 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Oscar Roberts 17 17 17 City of Edina Qualifying Sales by District for Calendar Year 2010 Address Sale Date Sale Price 6009 Ewing.Ave S 6001 Beard Ave S 6133 Beard PI 6000 Drew Ave S 3901 Grimes La 3924 58th St W 3904 60th St W, 5808 France Ave S 5921 Grimes Ave 5944 Kellogg Ave 5833 Concord Ave 6028 Kellogg Ave,. 5840 Oaklawn Ave 5921 Concord Ave 5816 St Johns Ave 5821 Oaklawn Ave 5928 Kellogg Ave 6120 Oaklawn Ave 6028 St Johns Ave 4704 Virginia La 6216 Parnell Ave 6216 Ashcroft La 6004 Virginia Ave 6012 Fairfax Ave 6233 Parnell Ave 6217 St Johns Ave 6225 Parnell Ave 6105 Ashcroft Ave 6304 Halifax Ave 6301 Halifax Ave 4709 School Rd 6516 Parnell Ave 6517 Parnell Ave 6401 Sherwood Ave 4220 70th St W 4704 70th St W 6908 Creston Rd 4725 Upper Ter 4709 Upper Ter 4709 Upper Ter 6632 Southcrest Dr 6612 West Shore Dr 4701 Dunberry La 6637 Southcrest Dr 4817 Dunberry La 6832 Oaklawn Ave 6700 Southcrest Dr 6916 Dawson La 6701 Southcrest Dr 7120 Heatherton Tr 7012 Bristol Blvd 7221 Cornelia Dr 10122/2010 06/24/2010 12/30/2010 06/14/2010 09/01/2010 12/15/2010 09/30/2010 06/02/2010 03/02/2010 04/29/2010 10/27/2010 06/30/2010 11/23/2010 08/27/2010 12/29/2010 04/09/2010 07/02/2010 06/28/2010 09/17/2010 12/29/2010 08/11/2010 05/20/2010 04/14/2010 08/25/2010 04/29/2010 04/16/2010 03/01/2010 02/18/2010 06/11/2010 02/24/2010 08/09/2010 06/29/2010 09/23/2010 03/19/2010 01/13/2010 08/26/2010 07/27/2010 08/20/2010 07/29/2010 11/18/2010 05/28/2010 08/05/2010 04/12/2010 05/27/2010 01/06/2010 07/28/2010 12/08/2010 03/31/2010 01/29/2010 03/26/2010 06/02/2010 04/26/2010 33 $ 284,900 $ 338,500 $ 380,000 $ 433,000 $ 196,425 $ 235,000 $ 236,613 $ 310,400 $ 437,500 $ 210,000 $ 215,000 $ 225052 $ 282,500 $ 285,000 $ 309,900 $ 320,000 $ 320,500 $ 360,000 $ 260,000 $ 264,650 $ 270,000 $ 290,000 $ 294,500 $ 295,000 $ 296,335 $ 328,500 $ 331,500 $ 349,500 $ 349,900 $ 360,000 $ 370,000 $ 326,800 $ 537,500 $ 680,000 $ 250,900 $ 305,500 $ 309;000 $ 445,000 $ 472,000 $ 475,000 $ 488,000 $ 522,500 $ 530',000 $ 547,000 $ 550,000 $ 560,000 $ 560,000 $ 617,000 $ 630,000 $ 295,700 $ 322,000 $ 410,000 District So 70th /Lake Edina 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 Brookview Heights 19 19 19 19 19 19 19 Wilryan So Xtown 20 20 20 '20 20 20 20 Richmond /Birchcrest 21 21 21 21 21 21 21 21 21 21 21 21 21 21 Brookside 22 22 22 22 22 22 22 22 22 22 22 City of Edina Qualifying Sales by District for Calendar Year 2010 Address 4517 70th St W 4504 Andover Rd 4437 Dunham Dr 7217 Monardo La 7108 West Shore Dr 4432 Ellsworth Dr 4416 Dunham Dr. 7317 Oaklawn Ave 4916 Poppy La 4413 Fondell Dr 7204 West Shore Dr 4409 Gilford Dr 4412 Dunham Dr 7305 Oaklawn Ave 7305 West Shore Dr 4905 Poppy La 7433 West Shore Dr 4904 Poppy La Sale Date Sale Price 09/27/2010 $ 176,000 11/19/2010 $ 310,000 12/16/2010 $ 315,250 03/03/2010 $ 325,000 09/24/2010 $ 325,000 09/24/2010 $ 420,000 10/26/2010 $ 420,000 10/01/2010 $ 434,200 07/27/2010 $ 435,000 06/23/2010 $ 440,000 10/29/2010 $ 465,000 04/09/2010 $ 482,500 06/28/2010 $ 487,700 07/29/2010 $ 490,000 08/0212010 $ 499,900 12/16/2010 $ 578,000 07/15/2010 $ 645,000 12/10/2010 $ 650,000 5208 Meadow Ridge 05/04/2010 $ 310,880 5108 Meadow Ridge 10/22/2010 $ 312,000 5149 Abercrombie Dr 06/18/2010 $ 314,750 5113 Danens Dr 06/30/2010 $ 322,500 5108 Danens Dr 04/29/2010 $ 322,500 5137 Danens Dr 04/16/2010 $ 327,000 5160 Abercrombie Dr 09/10/2010 $ 329,900 6428 Josephine Ave 01/22/2010 $ 272,540 6524 Wilryan Ave 08/30/2010 $ 285,000 6428 Wilryan Ave 08/31/2010 $ 291,000 6432 Wilryan Ave 01/29/2010 $ 330,000 6413 Mildred Ave 09/22/2010 $ 331,750 6525 Wilryan Ave 05/11/2010 $ 332,220 6501 Josephine Ave 04/15/2010 $ 345,000 5036 Richmond Dr 05/07/2010 $ 234,900 5821 Tingdale Ave 12/10/2010 $ 238,000 5721 Hansen Rd 08/04/2010 $ 256,000 5129 Valley View Rd 08/26/2010 $ 274,500 5208 62nd St 09/28/2010 $ 324,250 .W 5225 Birchcrest Dr 09/16/2010 $ 325,000 5828 Eastview Dr 10/29/2010 $ 339,000 5100 Benton Ave 03/16/2010 $ 347,900 5321 Birchcrest Dr 05/27/2010 $ 362,000 5301 Windsor Ave 02/05/2010 $ 362,500 5013 Yvonne Ter 12/08/2010 $ 365,000 6009 Tingdale Ave 06/25/2010 $ 383,000 5716 Code Ave 06/24/2010 $ 405,000 5021 Windsor Ave 06/21/2010 $ 479,500 4509 Vandervork Ave 08/26/2010 $ 246,000 4504 Vandervork Ave 09/17/2010 $ 259,000 4833 Westbrook La 11!19/2010 $ 261,500 5028 Bedford Ave 06/25/2010 $ 279,900 5025 Hankerson Ave 06/01/2010 $ 293,000 5036 William Ave 03/29/2010 $ 300,000 4512 Vandervork Ave 01/08/2010 $ 321,500 5001 Oxford Ave 04/01/2010 $ 330,000 Oxford Ave 05/07/2010 $ 352,500 .5109 4812 Rutledge Ave 02/25/2010 $ 360,000 5108 Oxford Ave 07/23/2010 $ 427,700 34 District 22 22 City of Edina Qualifying Sales by District for Calendar Year 2010 Address Sale Date Sale Price 4817 Rutledge Ave 11/15/2010 $ 605,000 4521 Rutledge Ave 09/28/2010 $ 762,000 35 District Rolling Green 23 23 23 Highland 24 24 24 24 24 24 24 24 24 24 24 24 Countryside 25 25 25 25 25 25 25 25 25 25 25 25 Creek Valley /Limerick 26 26 26 26 26 26 26 26 26 26 26 26 Kemmrich /Shannon 28 28 28 28 28 '28 28 28 28 Dewey Hill 29 29 29 29 Mendelsohn 30 30 30 City of Edina Qualifying Sales by District for Calendar Year 2010 Address 4877 Rolling Green Pkwy 4801 Rolling Green Pkwy 4704 Merilane 5608 Highwood Dr 5408 Highwood Dr W 5513 Mirror Lakes Dr 5608 Heather La 5513 Merritt.Cir 5528 Glengarry Pkwy 6113 Saxony Rd 5408 Mirror Lakes Dr 5524 Mirror Lakes Dr 5721 Blake Rd 5304 Ayrshire Blvd 5260 Lochloy Dr 5805 Tracy Ave 5725 Olinger Rd 5909 Tracy Ave 5516 Countryside Rd 5829 Grove St 5909 Amy Dr 5621 Johnson Dr 5410 Grove St 5924 Olinger Blvd 6321 Valley View Rd 5824 61 st St W 5512 Hunter St 5420 Creek View La 5820 Creek Valley Rd 6608 Galway Dr 6000 Chapel Dr 6220 Balder La 6616 Gleason Ter 6605 Gleason Rd 6604 Scandia Rd 6920 Hillside La 5616 Mcguire Rd 6605 Cahill Rd 5512 Mcguire Rd 5725 Kemrich Dr 7113 Fleetwood Dr 7101 Fleetwood Dr 7209 Gleason Rd 7001 Lanham La. 7205 Shannon Dr 5801 Kemrich Dr 7221 Fleetwood Dr 7515 Hyde Park Dr 7760 Shaughnessy Rd 7705 Stonewood Ct 7600 Delaney Blvd 7611 Stonewood Ct 501 Arthur St 404 Griffit St 6620 Waterman Ave Sale Date Sale Price 12/01/2010 $ 1,925,000 12/17/2010 $ 2,570,000 05/24/2010 $ 2,825,000 06/10/2010 $ 285,000 11/0112010 $ 330,000 08/26/2010 $ 420,000 08/18/2010 $ 430,000 09/30/2010 $ 449,900 06/15/2010 $ 478,500 07/19/2010 $ '560,000 05/21/2010 $ 560,560 11/12/2010 $ 597,500 01/29/2010 $ 620,800 06/10/2010 $ 683,000 01/05/2010 $ 698,262 12/14/2010 $ 216,000 03/01/2010 $ 280,600 10/25/2010 $ 285,000 04/09/2010 $ 387,000 04/29/2010 $ 422,500 03/17/2010 $ 425,000 07/29/2010 $ 470,000 03/24/2010 $ 470,000 12/10/2010 $ 475,000 10/08/2010 $ 475,300 05/10/2010 $ 705,500 08/03/2010 $ 1,155,000 04/23/2010 275,965 04120/2010 365,000 06/15/2010 369,900 06/24/2010 370,000 05/26%2010 440,000 04/13/2010 09/13/2010 08/19/2010 06/24/2010 06/16/2010 05/27/2010 03/31/2010 05/28/2010 07/09/2010 11/05/2010 07/23/2010 10/21 /2010 07/14/2010 407,000 09/30/2010 412,500 475,000_ 480, 000 481,500 489,080 513,000 430,000 460,150 475,000 475,000 479,500 515,000 525,000 537,500 750,000 09/30/2010 $ 275,500 12/22/2010 $ 540,000 06/1512010 $ 755,000 07/21/2010 $ 770,000 07/28/2010 $ 259,900 04/16/2010 $ 333,000 04/15/2010 $ 379,000 36 District 30 City of Edina Qualifying Sales by District for Calendar Year 2010 Address Sale Date Sale Price 308 John St 12/21/2016 $ 408,000 37 Q 38 i City of Edina Qualifying Sales by District for Calendar Year 2010 District Address Sale Date Sale Price Mals Heights 414 Jefferson Ave 11/30/2010 $ 178,000 31 31 318 Monroe Ave S 01/08/2010 $ 185,900 3i 308 Monroe Ave S 02/26/2010 $ 186,000 31 323 Monroe Ave S 08/16/2010 $ 211,000 31 423 Van Buren Ave 10/04/2010 $ 218,025 31 6601.Belmore La 10 115/2010 $ 292,500 Malibu 33 5412 Malibu Dr 05/27/2010 $ 366,000 Park Knolls Newer 5222 Green Farms Rd 10/29/2010 $ 536,000 34, 34 5216 Blake Rd 04/15/2010 $ 544,500 34 5.180 Malibu Dr 10/21/2010 $ . 575,000 34 5231 Green Farms Rd 11/11/2010 $ 600,000 34 5234 Green Farms Rd 07/01/2010 $ 695,000 34 5215 Ridge Rd . 10/29/2010 $ 855,000 Park Knolls Older 62 12 Idylwood La 10/09/2010 $ 683,000 35 3 5 5717 Schaefer Rd 11/19/2010 $ 885,000 35 6241 Knoll Dr 07/30/2010 $ 1,110,000 Artic Way/Tamarac 5928 Tamarac Ave 11/22/2010 $ 428,079 37 37 6021 View La 08/19/2010 $ 507,000 37- 6029 Killarney La 06130/2010 $ $ 571,500 585,000 37 6134 Arctic Way 06/15/2010 03/24/2010 $ 613,900 37 6101 Sherman Cir Indian Hills " 6513 Cherokee Tr 06117/2010 $ 663,750 38 38 6728 Indian Hills Rd 06/17/2010 $ 714,000 38 6743 Brendan Ct 05/21/2010 $ 1,500,000 Sioux Trail 6701 Indian Hills Rd 01/29/2010 $ 417,150 39 3g 6821 Paiute Dr 01/22/2010 $ 424,000 39 6841 Sally La 6841 08/27/2010 $ $ 455,900 575,000 39 Valley View Rd 11/10/2010 $ 607,500 39 6740 Indian Way West 05/13/2010 Braemar 40 6900 Gleason Rd 07/20/2010 $ 410,000 40 6920 Gleason Rd 06/16/2010 $ 449,900 40 6309 Loch Moor Dr 06/25/2010 $ 553,000 40 6124 Scotia Dr. 03/26/2010 $ $ 691,600 730,000 40 7019 Valley View Rd 08/03/2010 38 COMPARISONS WITH OTHER CITIES The assessing department has contacted other southwest suburban communities to determine the overall adjustment they have made to the market values of existing residential properties for their 2011 assessment. These amounts do not include increases in value due to new construction. The reported adjustments are as follows: 39 2006 PERCENT CHANGE 2007 PERCENT CHANGE 2008 PERCENT CHANGE 2009 PERCENT CHANGE 2010 PERCENT CHANGE 2011 PERCENT CHANGE CITY Bloomington 7.1 1.9 -2.9 -5.5 -5.6 -3.6 6.2 3.2 -0.9 -4.7 -6.1 -3.4 Eden Prairie Edina 10.9 1.3 -1.1 -1.9 -5.1 -2.7 M 8.6 2.8 -2.9 -5.0 -5.4 -3.5 Minnetonka 7.8 2.2 -1.8 -4.3 -6.4 -2.3 Plymouth 7.6 2.2 -2.6 -4.6 -5.8 -2.4 St. Louis Park 6.5 2.6 -0.7 -2.3 -4.6 -2.5 Average 7.9 2.4 -1.9 -4.0 -5.7 -3.0 39 APARTMENT AND COMMERCIAL /INDUSTRIAL ASSESSMENT The assessment for apartment, commercial, and industrial properties is subject to the same general standard as the residential property assessment. That is, there is a target sales ratio of 90 - 105% set for commercial properties (including apartments and industrial property). A significant difficulty encountered with local sales ratio studies for commercial /industrial and apartment property is there are usually relatively few property sales. For example, although there are 375 commercial /industrial parcels in the city, Edina typically has had fewer than 1.0 commercial /industrial property sales in any single year. In order to avoid this difficulty, countywide samples of comparable commercial property sales are used to help determine appropriate adjustment of market values. These studies show the following results: COMMERICAL /INDUSTRIAL Jurisdiction Assessment Sales Sales Ratio Coefficient of Dispersion Year 2011 4 98.5 3.1 Edina 2010 4 104.0 10.6 2009 3 75.3 9.0 2011 67 98:0 14.3 Hennepin 2010 90 98.0 11.3 County 2009 130 94.8 12.5 APARTMENTS 2011 1 99.1 - -- Edina 2010 3 100.5 7.1 2009 1 91.9 - -- 2011 10 97.5 5.9 Hennepin 2010 19 100.5 6.1 County 2009 30 98.0 9.1 40 APARTMENT AND COMMERICIAL/INDUSTRIAL ASSESSMENT (continued) This last two years have been challenging for the real estate industry. The markets are struggling to recover from the recession and are hindered by the continued high unemployment rate and limited financing options. In addition, the relatively small number of sales transactions has made it difficult for assessors and appraisers to have benchmarks in estimating market values. CITY COMMERCIAL INDUSTRIAL APARTMENT Bloomington -0.1% +0.8% +0.9% Eden Prairie -1.6% -1.8% +1.7% Maple Grove -2.1% -8.7% -9.0% Edina -1.4% 0% 0% Minnetonka +0.2% -2.0% +2.7% Plymouth +0.5% -0.7% -0.4% St. Louis Park +0.6% -0.9% +0.7% Tax Court As anticipated, a significant number of tax court petitions have been filed over the past two years. There were 115 petitions filed for the pay 2009 taxes and 147 filed on the taxes payable in 2010. Over the past seven years, over $5 billion in market value has been appealed through petitions filed with the Minnesota Tax Court. These petitions require a substantial amount of time and resources to resolve. 41 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $693,367,900 $600,000,000 $400,000,000 $200,000,000 City of Edina Value Under Petition $254,627,600 2004 2005 $607,051,600 $494,700,000 $489,701,300 r 2006 2007 2008 2011 ASSESSMENT CALENDAR $1,380,555,500 $1,203,211,900 2009 2010 DATE ACTION March 1 County Auditor's target date for mailing 2011 property tax statements. March 7 City Assessor's target date for mailing 2011 value notices. April 1 Last day for property owners to file an appeal to appear at the Local Board. April 11 Local Board of Appeal and Equalization. April 25 Reconvened meeting for Local Board of Appeal April 30 Last day for property owners to file State Tax Court petitions regarding the 2010 assessment. May 25 Last day for property owners to file an appeal to appear at the County Board of Appeal and Equalization June 13 Hennepin County Board of Appeal and Equalization. 42 SIMPLIFIED CHART OF PROPERTY TAX PROCESS Determines what property is taxed, and by what 1 _procedures -- 1 ASSESSOR lists all ta_xa_ble property A 1 estimates value of 1 t =sp.roperty -- j sends valuation notices I _ to_property owners — I 1 property owners can 1 !appeal their assessment) sends Ti r 7a F assessment j I roll to Hennepin County STATE LEGISLATURE determines levy limits 1 —� and bud et procedures, IF 1 CITY COUNCIL CITY MANAGER R I review , , budgets and 1 I sends proposed , R —proposed tax rate to council 1 holds truth -in- taxation I meetings _ _ _ _ , sets tax levy and sends I I to Count I L------ �-- - - - - -J HENNEPIN COUNTY j - - - - - - - pplies tax rate to assessed I values and sends out 1 I_ — — resultinq tax bills — _ 43 PROPERTY TAX REFUNDS AND PROGRAMS Propertv Tax Refunds Available The regular property tax refund provides relief to property owners who meet certain guidelines. For 2010, homeowners whose adjusted gross incomes are les's than. $99,240 and renters Less than $53,540 are eligible for the program. Homeowners nay receive a refund of up to $2,350;,- renters are eligible for up to $1,520. The special refund program offers relief to property owners, regardless of income, whose taxes in 2011 go up more than 12 percent and at least $100. The state will refund 60 percent of any amounts paid beyond those limits, up to a maximum of $1,000. For more information on property tax refunds, contact the Minnesota Department of Revenue at 651- 296 -3781 (TTY users, call 711 for MN relay). Senior Citizens Property Tax Deferral This program allows people 65 years of age or older whose household incomes are °$60,000 or less, to defer a portion of their homestead property taxes. The deferred tax is a loan from the state. While in this program, you will pay no more than 3 percent of your household income toward your property taxes and the state will pay the rest. You or your heirs will need to repay the deferred amount before you can transfer title of the property. A property may. qualify even if there are unpaid special assessments or property taxes; penalties or interest. For more information, call the Department of Revenue at 651 556 -6088 (TTY users, call 71.1 for MN relay). 44 MARKET VALUE EXCLUSION ON HOMESTEADS OF DISABLED VETERANS This program, enacted in 2008, provides an annual market value exclusion of up to $300,000 on homestead property of a qualifying disabled veteran. To qualify, a veteran must have been honorably discharged from the United States armed forces and be certified by the Veterans Administration as having a service- connected disability. Qualifying veterans with a 70 percent disability rating or higher are eligible for a market value exclusion of $150,000. Veterans who are totally (100 percent) and permanently disabled are eligible for a market value exclusion of $300,000. Applications are available in the assessor's office and must be made by July 1 to qualify for the exclusion on the current year's market value for taxes payable the following year. Veterans with a disability rating of 70 percent or higher will need to reapply annually. Veterans who are totally and permanently disabled do not need to reapply after initial approval. For taxes payable in 2011 (2010 assessment), 41 parcels will qualify for the market value exclusion. The total excluded market value is $9,000,000. Chi �4 ]AGUE oe jyJINAIESOTA CITIES CONNECTING & INNOVATING SINCE 1913 Property Taxation 101 This guide is intended to describe the basics of Minnesota's property tax system. This system collected more than $6.8 billion in 2008 to help fund the services of schools, counties, cities, townships, and special districts and the state general fund. One of the challenges of trying to understand this system is the complex array of terms involved. As new terms are introduced in this guide, they are shown in italics. A glossary at the end of the guide has short definitions of these terms. Assessment and classification The property tax system is a continuous cycle, but it effectively begins with the estimation of property market values by local assessors. Assessors attempt to determine the approximate selling price of each parcel of property based on the current market conditions. Along with the market value determination, a property class is ascribed to each parcel of property based on the use of the property. For example, property that is owner- occupied as a personal residence is classified as a residential homestead. The "use.class" is important because the Minnesota system, in effect, assigns a weight to each class of property. Generally, properties that are associated with income production (e.g. commercial and industrial properties) have a higher classification weight than other properties. The property classification system defines the tax capacity of each parcel as a percentage of each parcel's market value. For example, a $75,000 home which is classified as a residential homestead has a class rate of 1.0 percent and therefore has a tax capacity of $75,000 x .01 or $750. (A sample of the class rates are included in table A.) 145 UNIVERSITY AVE. WEST ST. PAUL, MN 35103 -1044 46 [parcel market value] * [class rate] _ [parcel tax capacity] The next step in calculating the tax burden for a parcel involves the determination of each local unit of government's property tax levy. The city, county, school district and any special property taxing authorities must establish their levy by December 28 of the year preceding the year in which the levy will be paid by taxpayers. The property tax levy is set after the consideration of all other revenues including state aids such as LGA. [city budget] - [all non - property tax revenues] = [city levy] For cities within the seven - county Twin Cities metropolitan and on the iron range, the levies are reduced by an amount of property tax revenue derived from the metropolitan and range area fiscal disparities programs (see Fiscal Disparities 101 for more information). pHomL (651) 281 -1200 EAx (651) 781 -1299 To1.1. r-REr, (800) 923 -1112 WEE= wwW -WCDRG Local tax rates Local governments do not directly set a tax rate. Instead, the tax rate is a function of the levy and the total tax base. To compute the local tax rate, a county must determine the total tax capacity to be used for spreading the levies. The total tax capacity is computed by first aggregating the tax capacities of all parcels within the city. Several adjustments to this total must be made because not all tax capacity is available for general tax purposes. The result of this calculation produces taxable tax capacity. Taxable tax capacity is used'to determine the local tax rates. [city levy] / [taxable tax capacity] ='[city tax rate] The city tax rate is computed by dividing the city levy (minus the fiscal disparities distribution levy, if applicable) by the taxable tax capacity: Under the current property tax system, the tax rate is expressed as a percentage. For example, the average 2008 city tax capacity rate is approximately 36.29 percent. Dramatic changes to the tax system in 2001 increased the average city rate significantly in 2002. This same calculation is completed for the county based on the county's levy and tax base, the school district and all special taxing authorities. The sum of the tax rates for all taxing authorities that levy against a single property produces the total local tax rate. This total local tax rate is then used to "'determine the overall tax burden for each parcel of property. Parcel tax calculations The property tax bill for each parcel of property is determined by multiplying the parcel's tax capacity by the total local tax rate. The. tax statement for each individual parcel itemizes the taxes for the county, municipality, school district, and any special taxing authorities. [parcel tax capacity] * [total local tax rate] _ [tax capacity tax bill] To complicate the tax calculations, voter - approved referenda levies are applied to the market value of each parcel, not tax capacity. As a result, each identically valued parcel, regardless of the property's use, pays the same amount of referenda taxes (with the exception of certain agricultural and seasonal recreational properties, which are exempted from referenda taxes). In 2008, three counties, 50 cities and 335 school districts levied market value -based levies. These communities must have a separate calculation for a market value referenda levy by the total taxable market value of each community. 47 [parcel market value] * [market value tax rate] = [market value tax bill] [tax capacity tax bill] + [market value tax bill] = [total tax bill] State property tax New to the tax system in 2002 was a state property tax on all commercial, industrial, seasonal recreational, and utility real property. In 2008, this new tax raised $655 million statewide; the proceeds are deposited in the state general fund. Prior to 2002, the state last collected a property tax in 1968. Property tax credits Several tax credits for various types of properties are'available in, certain instances. These amounts are subtrated from the overall taxes for each parcel to determine the net tax bill for the individual owner. Minnesota also provides additional property tax relief directly to individual homeowners, cabin owners, and renters through the circuit breaker and the targeting refund programs. Property tax intricacies The technical details of computing property taxes mask many other intricacies of the property tax system. Many communities over the past several years have experienced situations where individual property taxes rise much faster than the increase in the levies that are certified by local units of government. The most common factor that results in an increase in an individual parcel's tax is the change in the parcel's estimated market value. Without any change in local levies, a 'property owner can experience a tax increase due, almost exclusively to any valuation increase. The Legislature frequently changes the classification system. Changes to the classification system can shift property tax burdens from one type of property to another. Table A demonstrates some of the changes the Legislature has made to class rates since 1997. Commercial, industrial, and apartment properties received significant reductions in their class rates. This shifts tax burden to other classes of property that did not receive class rate reductions. In an effort to minimize the effect of these shifts, the legislature reduced school levies across the state and created the Market Value Homestead Credit. This credit reduces property taxes for homesteads by 0.4 percent of the homestead's market value up to�a maximum $304 dollars. As part of the credit program, the state has reimbursed cities for the amount by which the credits reduce cities' tax receipts. The . Legislature made significant reductions to the reimbursement amounts for cities in 2003 and 2004 and later extended those reductions to 2005 and 2006. The reimbursements were restored for 2007. Economic factors that may affect broad classes of property can also influence. the . overall tax changes for individual parcels of property. For example, in the early 1990s the metropolitan area experienced major declines in the valuation for commercial and industrial properties. These valuation declines - shifted taxes from property classified as commercial and industrial to all other types of property. Valuation declines also may have accentuated the levy changes by local units of government. A 2002 law change exempted agricultural and cabin property from voter - approved referenda levies. In some jurisdictions where these types of property are a significant part of the tax base, this change shifted taxes onto other classes of property. Legislative changes in state aid programs can also affect the revenue needed to be raised from the property tax. In 2002 the legislature eliminated HACA and increased the other major aid program, LGA, by $140 million. In 2003, the Legislature reduced 2003 LGA by about $120 million and 2004 LGA by about $150 million. In 2005, however, the Legislature added about $48 million to the LGA program for 2006 and beyond, $4 million of which is directed to cities under 5000 via a per capita aid base. Levy limits also impact local levy decisions. During the 2003, session, cities that had been previously covered by levy limits lost any unused levy authority. There were no levy limits in place for 2008 but the Legislature did pass new levy limits for cities over 2500 for taxes payable in 2009, 2010, and 2011. This discussion is only a general overview of the current Minnesota property tax system. Over time, the .system has become more . complex and difficult for taxpayers to understand. Unfortunately, local officials must frequently explain how the system works and take the blame for the complicated features of the system. Local officials, however, can only control local levy decisions. They have no direct ability to modify the overall structure of the tax system and are at the mercy of the Minnesota Legislature. 48 Glossary of 'berms Circuit breaker - A state -paid property tax refund program for homeowners who have property taxes out of proportion with their income. A similar program is also available to renters. Class rates - The percent of market value set by state law that establishes the property's tax capacity subject to the property, tax. See Table A for a sample list of class rates. Fiscal disparities programs - Local units of government in the Twin Cities metropolitan area and on the iron range participate in property tax base sharing programs. Under these two programs, a portion of the growth in commercial and industrial property value of each city and township is contributed to a tax base sharing pool. Each city and township then receives a distribution of property value from the pool based on market value and population in each city. Homestead and agricultural credit aid (HACA) - A $200 million property tax relief program that was eliminated in 2001. Local government aid (LGA) - A state government revenue sharing program for cities and townships that is intended to prpvide an alternative to the property tax. The formulae for distributing the aid payments were changed for 2004 and beyond: Transition mechanisms built into the new LGA law, mean that it will be several years before all cities are_fully "on" the new formula. LGA is distributed using different formulae for cities over 2;500 and cities under 2,500. Large city formula factors are: pre -1940 housing percentage, population decline over last decade, accidents per capita, average household size, metro or non-metro, and adjusted net tax capacity per capita. Small city formula factors are: pre -1940 housing percentage,, population decline over last decade, commercial /industrial property percentage, and population. The 2006 Legislature implemented a new $6 per capita aid base for cities under 5000. Local tax rate - The. rate used to compute taxes for each parcel of property. Local tax rate is computed by dividing the certified levy (after reduction_for fiscal disparities distribution levy and disparity reduction) by the taxable tax capacity. 49 Market value - An assessor's estimate of what property would be worth on the open market if sold. The market -value is set on January 2 of the year before taxes are payable. Market value homestead credit - This credit offsets a portion of each homestead's property tax burden equal to .4 percent of the homestead's market value up to a maximum credit of $304. Property class - The classification assigned to each parcel of property based on the use of, the property. For example, owner- occupied residential property is classified as homestead. Property tax levy - The tax imposed by a local unit of government. The tax is established on or around December 28 of the year preceding the year the levy will be paid by taxpayers. Targeting refund - a state paid property tax refund for homeowners whose property taxes have increased by more than 12 percent. A similar program is available to cabin owners. Tax capacity - The valuation of property based on market value and statutory class rates. The property tax for each parcel is based on its tax capacity. Total tax capacity - The amount computed Truth -in- Taxation - The "taxation and by first totaling the tax capacities of all notification law" which requires local parcels of property within a city. governments to set estimated levies, inform Adjustments for fiscal disparities, tax taxpayers about the impacts, and hold a increment and a portion of the powerline separate hearing to take taxpayer input. value are made to this total since not all tax , capacity is available for general tax purposes. 1 Cll/lV [7. vaua.s •..a..v.� Property Class Taxes Local Taxes State Tax Payable Payable 2007 Pa able 2008 2008 Residential Homestead: <$76,000' 1.0% 1.0% No state tax $76,000 - $500,0.00 1.0 1.0 ?$500,000 1.25 1.25 Non- homestead Residential: Single unit: <$76,000' 1.0 1.0 No state tax $76,0004500,000 1.0 1.0 >$500,000 1.25 1.25 2 -3 unit buildings 1.25 1.25 Market -rate Apartments: 1.25 1.25 No state tax Commercial/Industrial: Subject to state <$100,0002 1.5 1.5 levy (Commercial- $100,000- $150,000 1.5 1.5 industrial rate) ?$150,000 2.0 2.0 Seasonal Recreational Residential: Subject to state <$76,001 1.0 1.0 levy (seasonal - $76,000- $500,000 1.0 1.0 recreational rate) >$500,000 1.25 1.25 'First tier limit was $72,000 for 1997, $76,000 for 2000, and $500,000 for 2002 2First tier limit was $100,000 for 1997, $150,000 thereafter Rachel Walker, League of Minnesota Cities — Updated August 2008 50 0 LEAGUE OF 0. MINNESOTA CITIES CONNECTING & INNOVATING SINCE 1913 Property Tax Statement 101 This guide is intended to help explain the basics of the property tax system to residential taxpayers by "walking through" each section of the property tax statement. Minnesota homeowners receive the tax statement for their property in March. Property, taxes are derived from the property. assessment, the. local government levies and any voter approved referenda. Credits, refunds and other forms of relief complicate the system. See the "Property Taxation 101" document for a more detailed description of the property tax system and a glossary of terms. The Layout The property tax statement is brief but contains a lot of information. The property tax statement not only communicates the amount due in the current year but provides comparison with the previous year's valuation, property classification, reductions from state aid and credits and total tax amounts. Layout of the statement may vary slightly from county to county but the content will generally be the same. The frongage lists identifying information about the county auditor, the subject property and the taxpayers. The rest of the front page; which shows the taxes due, will be discussed in more detail in the following sections. The back page of the statement contains information about refund programs available to eligible homeowners. See the "Property Tax Relief 101" document for a summary of state -paid refund programs. A summary table of late payment penalties also appears on the back page. The back page may also contain other tax related notices. 145 UN IVERSITY AVE. WEST ST. PAUL, MN 55103 -2044 Tax Values & Classification This section contains information on the market value and classification of the property. The estimated market value is determined by an assessor and represents an estimate of how much the property would be worth on the open market if sold. The taxable market value is the estimated market value minus any excluded property improvements or other exclusions. The taxable market value accounts for the limited market value provision, a limitation on the amount a property's value can increase in any year. The increase is capped at 15 percent of the previous limited market value or 25 percent of the difference between the current year estimated market value and the - previous year limited market value. Enacted in 1993, this provision is currently being phased out and will end by 2010. 51 Every parcel is classified based on use and assigned a classification rate. Income - producing properties generally have higher class rates. These rates are set by the legislature and are not tax rates but a weighting system. In other PHONE: (651) 281 -1200 FAX: (651) 281 -1299 TOLL FREE: (800) 925-1122 WEB: WWWLMC.OPG words, if two properties had equal market values but different class rates, the property with the higher class rate would, have a higher tax capacity. The property tax statement may show the abbreviated classification name, such as Res. Hmstd. (residential homestead). The Mechanics of Taxes The market value and classification is used to determine the property tax bill. Most property taxes are levied against the parcel's tax capacity and some are levied against the taxable market value. The tax capacity of a parcel is determined by multiplying the parcel's market value by its classification rate. For examples a home with an assessed market value of $250,000 has a class rate of 1.0 percent, which equals a tax capacity of $2,500. Property taxes that are levied against tax capacity are calculated using tax capacity rates. These rates are determined by dividing the tax capacity levy,,by the total tax capacity of a jurisdiction. The sum of all tax capacity rates, the total local tax rate, is multiplied by a parcel's tax capacity to determine the tax capacity portion of the tax bill. Voter-- approved referenda levies are applied to a parcel's taxable market value instead of the tax capacity. The market value rate is found by dividing the market value levy by the total market value. Multiplying the market value rate by the parcel's taxable market value results in the market value portion of property taxes. The tax capacity portion plus the market value portion less any 52 credits comprise the total tax bill for a property. Taxes payable for the current year and previous year are listed at the top of the tax detail section on the statement. These amounts do not include any special assessments and are used to determine eligibility for refund programs. State Aid Reductions Thestatement must contain a section that details how an individual's taxes have been reduced by state aid and credit programs. The tax amount without any aid or credits applied is shown first, with deductions for aid and credits itemized separately. All state aid amounts that cities may receive are certified by July. Aid helps close the gap between a city's expenditure needs and its ability to raise revenues through property taxes, fees, charges and other sources of revenue. See the "Local Government Aid 101" document for more information on LGA, the largest state aid program. An individual property tax bill may be reduced by applicable credits, such as the homestead market value credit (MVHC). This credit provides a reduction in property taxes of 0.4 percent of the homestead's market value up to a maximum of $304 dollars Homesteads valued at $413,778 and over do not receive credit. Local jurisdictions are reimbursed by the state for the total amount of credits given to homeowners. Agricultural homestead. properties may benefit from the Agricltural Market Value Credit program which works similarly to MVHC. See the "Market Value Homestead 101" document for further details on these credits. The taconite tax relief program is available to taconite relief areas on the Iron Range. The value of the credit is dependent on characteristics such as the value of iron ore in the jurisdiction and the proximity to mines. Property Tax by Jurisdiction The tax statement itemizes tax amounts for each taxing jurisdiction and any voter - approved referenda levies. All of the different levies are summed, showing the total property tax amount before special assessments. An individual parcel is typically in several taxing jurisdictions: city, county, school district and any special property taxing districts, such as a watershed district. Each jurisdiction levies a tax and there is a different tax rate for each jurisdiction. Jurisdictions do not set the tax rate; rather it is a function of the jurisdiction's levy and total tax base. [levy] / [tax base] _ [tax rate] Each taxing jurisdiction must establish the preliminary property tax levy by mid September. The final levy can be less but not more than the preliminary amount. In very simple terms, the levy is determined by the'following calculation: [budget] — [all non- property tax revenues] _ [levy] . . Special Assessment Any special assessments on the property are listed by type of assessment. The sum of any assessments owed is then added to the property tax subtotal. Pay Stubs The bottom of the statement contains pay stubs showing the amount and date due that are to be submitted with each payment. The pay stubs are not used by taxpayers who pay property taxes along with their mortgage payments. Half of the total tax payment is due May 15 with the remaining half due Oct. 15. A penalty fee is assessed for late payments. The back of the statement explains how to calculate penalties. The payment amounts must be paid in full even if the taxpayer is eligible for a refund. City, county and school district web sites often have additional information on budgets, spending priorities, etc. The League of Minnesota Cities web site offers a calculator tool to compare taxes on properties in different cities and in different years. Timeline and.Additional Information The entire process for assessing, calculating, imposing and collecting property taxes actually takes two full years and is administered by counties. Taxpayers receive two documents prior to the tax statement. Assessors determine market values by Jan. 2 of the year before taxes are payable. In other words, market values for taxes payable in 2008 were set in January 200,7. Property owners receive notice of the market value from the assessor in March of each year. An appeals process is established for property owners who disagree with the assessed valuation. 53 Truth -in- taxation (TNT) notices are mailed to property owners in November and show the tax burden under the proposed levy. The notice lists both actual taxes paid in the previous year and proposed taxes. Taxpayers can see what factors contributed to change in the property taxes due (i.e., changes in future referendums, legal judgments, spending by one or more jurisdictions, natural disasters or special assessments. classification changes, assessed value A jurisdiction's final levy must be change, etc.). Locations and dates for. certified by Dec. 28. hearings on the proposed taxes are listed on the bottom of the notice. The levy may change.as a result of these hearings, Resources League of Minnesota Cities www.Imc.org/ReseaichAnalysis/Analysi,sByTopic-cfm o Local Government Aid 101 o Market Value Homestead Credit 101 o Property Tax 101 Property Tax Relief 101 - Minnesota Department of Revenue ® Sample TNT Notices hM2://www.taxes.state.mn.us/propeM _ tax administrators /other supporting content/tnt200 8 main.shtml ® Sample Property Tax Statement http / /www taxes state mn.us/property tax administrators /other supporting content /propt axstatement 2008.shtml House Research http://www.house.leg.state.mn.us/hrd/hrd.htm Classification rates . o Limited Market Value Brief . 54 `e ` Sale and Resale Analysis Summary The best indications of change in market conditions are provided by the prices of properties that have been sold and resold several times. There were 24 single - family residential properties that sold in 2010 that had also sold within the prior 4 years. Sale prices were adjusted for cash equivalency. Properties with improvements made from 2006 to 2010 were excluded from this analysis. Summary of Sales - Single Family Twenty two out of the twenty three sales indicated a decrease over the four year period. The average annual decrease was 3.3 percent and the median annual decrease was 2.6 percent. Summary of Sales- Condominiums Year Resold Number of Sales Aggregate Percent Change Average Annual Change Median Annual Change Year Sold 2006 2010 2010 2010 2010 9 8 4 3 -18.2 -6.3 -16.4 -4.6 -3.7 --2 0 -4.6 -4.1 -3.1 -1.3 -4.6 -6.4 2007 2008 2009 Twenty two out of the twenty three sales indicated a decrease over the four year period. The average annual decrease was 3.3 percent and the median annual decrease was 2.6 percent. Summary of Sales- Condominiums Fourteen out of the fifteen sales indicated a decrease over the four year period. The average annual decrease was 5.5 percent and the median annual decrease was 5.1 percent. For townhomes, there was only one repeat sale. At Cahill of Edina, 7458 Cahill Road sold in 2006 for $425,000 and again in 2010 for $347,000. The indicated annual decrease was 4.6 percent. The following pages include the sales used in this analysis. The percent change column represents average annual rates based on elapsed months between sales. 55 Year Resold Number of Sales Aggregate Percent Change Average Annual Change Median Annual Change Year Sold 2010 2010 2010 2010 8 5 1 1 -20.4 -12.7 -10.8 0.0 -6.4 -5.4 -3.8 1 0.0 -6.4 -5.1 -3.8 0.0 2006 2007 2008 2009 Fourteen out of the fifteen sales indicated a decrease over the four year period. The average annual decrease was 5.5 percent and the median annual decrease was 5.1 percent. For townhomes, there was only one repeat sale. At Cahill of Edina, 7458 Cahill Road sold in 2006 for $425,000 and again in 2010 for $347,000. The indicated annual decrease was 4.6 percent. The following pages include the sales used in this analysis. The percent change column represents average annual rates based on elapsed months between sales. 55 teport Name: Multiple Sales Analysis current Sale Year: 2010 Sales Data Period: 01/2006 - 12/2010 User Name: BWILSON (2) p][D I Address 04- 116 -21 -24 -0036 6432 Wilryan Ave 05- 116 -21 -44 -0051 5420 Creek View La 06- 116 -21 -44 -0017 6920 Gleason Rd_� 67- 028 -24 -13 -0095 4008 Grimes Ave. :07- 116 -21 -12 -0069 7019 Valley View Rd 68- 116 -21 -21 -0022 7001 Lanham La `18- 028 -24 -12 -0017 4507 Arden Ave 18- 028 -24 -12 -0117 .4507 Drexel Ave 18- 028 -24 -21 -0047. 4506 Moorland Ave 18- 028 -24 -41 -0119 5113 Indianola Ave 18- 028 =24 -42 -0076 443152nd St W -19- 028 -24 -24 -0092 4505 Woodland Rd W -20- 028 -24 -21 -0065 5528 Xerxes Ave S 26- 028 -24 -24 -0133 5608 Zenith Ave S 20- 028 -24 -31 -0029 5824 York Ave S 20- 028 24 -31 -0116 5900 Zenith Ave S 'J20- 028 -24 -33 -0002 6000 Drew Ave S 28- 117 -21 -32 -0006 5025 Hankerson Ave 29- 117 -21 -44 -0043 5260 Lochloy Dr 30- 028 -24 -21 -0037 6216 Ashcroft La 30- 028 -24 -22 -0023 6233 Parnell Ave 30- 028 -24 -34 -0075 6908 Creston Rd 31- 117 -21 -14 -0019 5717 Schaefer Rd 32- 117 -21 -41 -0010 5516 Countryside Rd 56 Printed: 3 /4/2011 City Of Edina Page: 1 Multiple Sales Analysis F Single. Family Year 2006' -Sale Year 2007- -Sale Year 2008 - -Sale Year 2009 -- _ Pct - -Year 2010 - MO Price -Sale Price Pct MO Price Pct Mo Price Pct Mo Price NO - 1 330,000 5 335,000 -0.6 4 275,965 11 268,000 1.2 6 449,900 . ` 8 540,000 -5.9 3 586,000` 9 605,000 -1.3 8 730,000 3 990,000 -5.9 7 479,500 4 552,000 -3.1 3 712,500 9 830,000 -4.0 6 1,475,000 -8.9 8 1,190.895 6 1,065;000 12 1;265,000 -4.5 9 615,000 -0.6 1 609,900 3 -8.5 8 1,750,000 .2;200,000 9 408,500 -6.4 9 382,500. 10 214,500 5 239,000 -2.3 8 190,000 2 215,000 -2.6 6 237,500 -0.5 , 8 235,000 5 290,000 8 305,000 -1.3 6 433,000 6 450,000 -1.3 8 288,500 1.9 6 293,000 1 698;262 3 760,000 -2.1 5 315,000 -7.9 5 290,000 4 296,335 4 330,000 -3.4 7 309,000 9 356,000 -4.7 11 885,000 9 1,280,000 -7.4 4 387,000 12 390,000 -0.3 _ Sale and Resale Analysis Summary Year Year Number Aggregate Average Median Sold Resold Sales Percent Annual Annual Chang C Chaup, a Change 2006 2010 9 -18.2 -3.7 -3.1 2007 2010 8 . -6.3 -2.0 -1.3 2008 2010 4 -16.4 -4.6 -4.6 2009 2010 3 -4.6 -4.1 -6.4 56 Printed: 3 /4/2011 Report Name: Multiple Sales Analysis City Of Edina Page: 1 Current Sale Year: 2010 Sales Data Period: 01/2006 - 12/20 10 Sales Analysis User Name: BWILSON (2) Condo Sales —Sale Year 2007 - Mo Price Pct 4 265,000 -1.3 9 680,000 -3.8 6 82,000 -9.0 —Sale Year 2008— —Sale Year 2009— —Year 2010 - Mo Price Pct Mo Price Pct Mo —Sale Year 2006— pm Address M Price Pct 255,000 1 465,000 -3.8 11 2 1 620,500 ,08- 116 -21 -12 -0072 5501 Village Dr 305 2 444,000 -1.0 08- 116 -21 -42 -0261 5601 Dewey Hill Rd 307 5 350,000 -5.1 18- 028 -24 -41 -0019 4075 51st St W 208 2 229,000 11 18- 028 -24 -41 -0202 5100 France Ave S 304 2008 2010 1 -18- 028 -24 =41 -0247 5000 Halifax Ave 202 -3.8 2009 2010 r28- 117 21 -34 -0127 5250 Grandview Square 2203 5 492,500 -4.8 +30- 028 -24 -14 -0109 6566 France Ave S 911 5 250,000 -7.7 31- 028 724 -42 -0031 4351 Parklawn Ave 8 31- 117 -21 -32 -0074 6923 Langford Dr 6 167,000 -7.6 31- 117 -21 -34 -0125 6650 Vernon Ave 403 2 126,900 -10.9 31- 117 -21 -34 -0468 6730 Vernon Ave 103 8 129,900 -12.2 7440 Edinborou h Way 4317 5 245,000 -1.7 Condo Sales —Sale Year 2007 - Mo Price Pct 4 265,000 -1.3 9 680,000 -3.8 6 82,000 -9.0 —Sale Year 2008— —Sale Year 2009— —Year 2010 - Mo Price Pct Mo Price Pct Mo Price 6 425,000 1 284,000 4 255,000 1 465,000 -3.8 11 415,000 1 620,500 1 405,000 4 175,000 4 61,000 9 113,000 12 60,000 9 65,000 2 229,000 11 147 000 32- 028 -24 -32 -0396 t, 3 181,000 -5.1 ' 32- 028 -24 -34 -0220 7625 Edinborough Way 2313 3 190,000 -7.8 10 137,000 32- 028 -24 -34 -0751 7605 Edinborough Way 6312 5 130,000 0 8 130,000 32- 117 -21 -23 -0132 5725 Blake Rd 203 Sale and Resale Analysis Summary Year Year Number Aggregate Average Median Sold ReSold Sales Percent Annual Annual _ Change Change Change 2006 2010 8 -20.4 -6.4 -6.4 2007 ` . 2010 5 -12.7 -5.4 -5.1 2008 2010 1 -10.8 -3.8 -3.8 2009 2010 1 0.0 0.0 0.0 57 Twin Cities Housing Market Annual Report A RESEARCH TOOL PROVIDED BY THE MINNEAPOLIS AREA ASSOCIATION OF REALTORS® ® fl IIE�IIOR '_'-'�� MINNEAPOLIS AREA Association of REALTORS® Twin Cities Housing Market Annual Report A RESEARCH TOOL PROVIDED BY THE MINNEAPOLIS AREA ASSOCIATION OF REALTORS® As the first decade of the 21 st century limps into the history books, it's time to look back and take stock. When the residue settled after the housing bubble burst, we collectively discovered Sir Isaac Newton was correct - for every action there is an equal and opposite reaction. While it's his third law of motion, it might as well be the first law of housing market incentives. The moment the first -time home buyer tax credit evaporated, there was no stimulus to anchor housing demand. The credit shifted the typical summer and fall buying season into spring, creating a textbook case of "displaced demand." Persistent economic headwinds and a sluggish labor market couldn't drive population growth or new household formations. Most first -time home buyers bought during the 2009 or 2010 credit periods and consumer confidence wasn't sufficient to motivate enough move -up buyers to stabilize demand. Despite 2010 being one of the most tumultuous years since the 2007 recession, the worst is likely behind us. If 2010 could be described in five phrases, they would be: tax credit, no tax credit, historically low mortgage rates, record -high affordability and a sloth -like economic recovery. Listings There were 82,127 new homes introduced to the marketplace in 2010, down a modest 1.4 percent from 2009 levels. Sellers can expect some additional challenges in early 2011, particularly in areas with a high share of properties that are in financial distress. These attractive alternatives will continue to lure buyers who are shopping in the areas where they're most prevalent. Buyers are looking for quality and value; sellers facing competition will have to offer one or the other, if not both. Motivated sellers will need to seriously evaluate their pricing strategy before considering other concessions to charm buyers. For 2011, anticipate listings to approach 85,000 homes. Closings Sales volumes likely hit their trough in 2010. The 37,608 closings for the year were down 16.8 percent from 2009 but saw a less dramatic 3.8 percent drop from 2008. We'll struggle to clear the high water mark set during the spring 2010 tax credit, but we should finish stronger in 2011 than we did in 2010. Don't expect a magical resurgence in purchase activity without greater household financial security and consumer confidence, but sales should reach 40,000 units in 2011. Prices After cresting in 2006 at $230,000, the 2010 median sales price of $169,900 was 2.3 percent above 2009. This represents the first annual price gain in four years. From peak to valley, prices reset downward about 28.0 percent to hit bottom in 2009. Those measuring market vitality by median sales price should be aware of its inputs. Higher volumes of distressed sales will exert downward pressure on prices; so will oversupply issues as measured by absorption rates above six months. ell,� MINNEAPOLIS AREA Association of REALTORS® The product mix effect also plays a key role; younger buyers were looking for bargain - priced homes with mortgages commensurate with rent. This meant that more homes sold at lower price points than has historically been the case. Lastly, a stronger labor market drives new household formations, encourages move -up buyers and entices renters into ownership positions. 2011 should come with another slight price boost to around $175,000. Foreclosures Two obstacles in the way of a full housing recovery are foreclosures and short sales. Nationally, some estimate as many as one in four homeowners have negative equity. Many homeowners won't be back in positive equity territory until 2015 or later. This means that foreclosures will continue to be a part of the landscape for some time. Bank moratoria will only delay this. The foreclosure epidemic peaked in 2009 when more than 43 percent, or about two of five sales, were lender mediated. The foreclosure rate in 2010 improved slightly, dropping to 40 percent. Excluding seasonal fluctuations, expect a continuation of this steady decline. Barring increased investor speculation, we should drop below a 40 percent distressed sales rate in 2011, or less than two in five sales. For qualified buyers, it is still an ideal time to purchase a home - perhaps even more so than during the tax credit period. Low prices, low interest rates, high supply and strong negotiating leverage have combined to create one of the most attractive buying environments in generations. In its entirety, 2010 shed light on some of the persistent challenges to a full housing market recovery, but leading indicators suggest reason for optimism in the latter half of 2011. With 2010 a fading mirage off our stern, smoother waters lie ahead. Table of Contents 3 Quick Facts 5 Property Type Review 6 New Construction Review 7 Distressed Homes Review & Map 9 Sales Overview by Area 11 Price Overview by Area & Maps 15 Historical Prices by Area & Map 18 Historical Review Click on desired metric to jump to that page. Sponsored by Royal credit Union I w .rcu.org Minneapolis Area Association of REALTORS ®. Powered by tOK Research and Marketing. i 2 92011. All data from Northstar RMLS. Provided by the 2010 Annual Report on the Twin Cities Housing Market 4% MINNEAPOLIS AREA Association Quick Factsfor the 13- County Metro Area - -f REALTORS® New Listings Closed Sales 108.022 105.044 47,906 45,185 93,560 40,055 38,746 83.299 87_,127 37,608 I I 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Top 5 MLS Amax Change in Home Sales from 2009 Top S MILS Amax Change in New Listings from 2009 398 - Victoria +35.9% 361 - Crystal +17.1% +16.8% 618 - Eastern Dakota County +17.6% 368 - Hennepin-Northwest p +16.4% , 628 - Southern Dakota County +11.8% 373 - Golden Valley + 5.0% 398 - Victoria +15.7% 706 -North Central Surburban + 13.9% I 381 - Lake Minnetonka +4.7% 752 - SP- Highland Area , in New ListMtgs from 2009 I Bottom S MILS Apex Change in Home Sales from 2009 Betts 15 MILS Areas: Change - 35.8% 772 - Lexington /Circle Pines -13.5% 378 - Richfield - 13.5% ' 742 - SP- Central -36.0% 754 -Big Lake Township , 754 -Big Lake Township -36.8% - 15.5 /o 728 - SP- Riverview /Cherokee o - 37.6% 618 - Eastern Dakota County -30.0% 1 728 - SP- Riverview /Cherokee - 33.9% , 308 - MPLS - Powderhorn -42.8% 628 - Southern Dakota County - _. - - - - - - - - - - - - - - - - I M Average Sales Price median Sales Price 5278 462 8274,733 $230,000 $225,000 � $195,000 9 $236,945 $211,186 $16,900 1 $199,407 $166,000 , 1 1 I I I I 2006 2007 2008 2009 2010 , 2006 2007 2008 2009 2010 Top 5 MLS Anax Change in Median Sales Price from 2009 I Top 5 MLS Areax Change in Average Sales Price from 2009 + 41.8% I 305 - MPLS - North +26.6% 305 - MPLS - North ' + 24.7% 301 - MPLS - Camden + 37.8% 1 721 Lakeland/Afton /Denmark I 301 -MPLS - Camden +18.8% 307 - MPLS - Phillips +24.7% , + 22.2% 1 300 - MPLS - Calhoun -Isles + 14.6% 363 - Brooklyn Center ' 39g - Victoria +14.4% 73B - SP -Home Croft/W 7Th +20.6% , I Botbm 5 MILS Amax (Mange in Median Sales Price from 2009 I Bottom 5 WS Arsil change In Average Sales Price from - 11.0% I 772 - Lexington /Circle Pines -7.5% 772 - Lexington /Circle Pines I -8.2% 646 - Jordan -12.1% I 650 - Belle Plaine - 13.5 /o o I 784 - Northern Chisago County -9.4% 710 - Northeast Anoka County I - 14.4% 618 - Eastern Dakota County -14.2% I 741 - SP- Downtown Stp /Capital Hg - 16.2% I 710 - Northeast Anoka County -16.7% 784 - Northern Chisago County Sponsored by Royal Credit Union I www.rcu.org neapolis Area Association of REALTORS ®. 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Provided by the Min 2010 Annual Report on the Twin Cities Housing Market MINNEAPOLIS AREA Association Quick Factsfor the 13- County Metro Area (cont.) o, REALTORS' Days on Market Until Sale Percent of Original List Price Received 96.8% 94.7% 1-43 138 130 91.8% 92.8% 92.1% I 121 I t 2007 2008 2009 Top 5 MLS Areas: Shortest Days on Market Until Sale in 2010 303 - MPLS - Longfellow 306 - MPLS - Northeast 305 - MPLS - North 363 - Brooklyn Center 769- Anoka t I r r 2010 2 2006 2007 2008 2009 2 2010 I I T Top 5 MLS Areas: Percent Of Original Price Received in 2010 ` 74 3 363 - Brooklyn Center 9 95.9% 84 1 3 303 - MPLS - Longfellow 9 95.3% 91 , 305 - MPLS - North 9 94.5% 91 7 742 - SP- Central 9 94.5% 92 , 307 - MPLS - Phillips 9 94.3% r Bottom 5 MLS Areas: Longest Days on Market Until Sale in 2010 r Bottom 5 M reas. 222 ' 721 - Lakeland /Afton /Denmark 89.4% 618 - Eastern Dakota County 1 88.8% 628 - Southern Dakota County 212 1 784 - Northern Chisago County 0 784 - Northern Chisago County 207 ; 381 -Lake Minnetonka 88.5 ° 205 1 628 - Southern Dakota County 87.9% 741 - 5P- Downtown Stp /Capital Hg 618 - Eastern Dakota County 78.9% 196 ` 721 Lakeland /Afton /Denmark Months Supply I at Year End Homes for Sale at Year End 2r,b,b 25,505 8.4 7.9 7.1 7.5 ; 24'347 20,782 22,332 1 I 5.5 I 1 1 1 I r � I I 2006 2007 2008 2009 2010 1 2006 2007 2008 2009 2010 ` Top 5 MLS Areas: Change in Homes for Sale from 2009 Top 5 MLS Areas Shortest Months Supply at Year End ' + 68.8% 618 - Eastern Dakota County 2.9 1 628 - Southern Dakota County 1 +35.7% 750 - SP- Mac /Groveland /River Road 4.0 1 398 - Victoria 4.8 1 748 - SP -Town and Country/Merriam Park +22.5% 386 - Hopkins I 309 -MPLS - Southwest 4.6 , 702 - Falcon Hghts /Lauderdale /Rosedale + 18.3% 4.9 1 741 - SP- Downtown Stp /Capital Hg +15.1% 628 - Southern Dakota County I Bottom 5 MLS Areas: Longest Months Supply at Year End , Bottom 5 MLS Areas: Change in Homes for Sale from 2009 115 1 713 - Bethel -44.9% , 805 - Western Wisconsin I -45.5% 630 - Northfield 10.9 I 363 - Brooklyn Center 109 1 307 - MPLS - Phillips -46.5% . 368 - Hennepin- Northwest -51.5% 10.8 ` 310 - MPLS - University 721 - Lakeland /Afton /Denmark r 308 -MPLS - Powderhorn -55.6% 381 - Lake Minnetonka 10.6 Sponsored by Royal Credit Union i www- rcu.org // 02011, All data from Northstar RMLS. 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I Click for Table of Contents 4 2010 Annual Report on the Twin Cities Housing Market Property Type Review 124 Days on Market Until Sale Single - Family Detached 143 Days on Market Until Sale Townhome -Condo Days on Market Until Sale t�Single- Family Detached --4--Townhouse, -Condo 180 170 160 150 140 130 120 110 100 1 -2008 7 -2006 1 -2009 7 -2009 1 -2010 7 -2010 +2.8% -3.5% One -Year Change In Price One -Year Change In Price Single - Family Detached Townhome -Condo MINNEAPOLIS AREA Association -f REALTORS' Top 10 MLS Areas: Townhome -Condo Market Share 302 - MPLS - Central 99.1% 741 - SP- Downtown Stp /Capital Hg 97.2% 740 - SP- Crocus Hill 60.5% 300 - MPLS - Calhoun -Isles 57.2% 386 - Hopkins 53.7% 614 - Apple Valley 53.0% 610 - Eagan 47.6% 612 - Burnsville 472% 608 - Inver Grove Heights 46.8% 310 - MPLS - University 46.1% Bottom 10 MLS Areas: Townhome -Condo Market Share t 1 4.3% 1 361 - Crys a ` 3.7% 303 - MPLS - Longfellow 721 - Lakeland /Afton /Denmark 2.1% 305 - MPLS - North 2.1% I 1 301 - MPLS - Camden 2.0% ` 628 - Southern Dakota County 1.8% 1 716 - SP- Hillcrest/Hazel Park/Dayton's Bluff 1.6% ` 618 - Eastern Dakota County 1.4% 1 1 710 - Northeast Anoka County 0.6% 713 - Bethel 0 0.3 0 _ I 1 _ T _ I 6.8 1 7.8 I Year End Months Supply Year End Months Supply Single- Family Detached Townhome -Condo i ` S { Median Sales Price (inthomros) I Year End Months upp y 2006 is 2007 ■ 2008 ■ 2009 ■ 2010 ' zoos ■zoo? ■zoos ■zoos ■2010 $249 $244 $189 $182 1 1 9.7 1 E9 1 8.3 7.8 1 _ 1 7.3 6.B 6.8 I 1 5.9 1 s.1 1 1 I I 1 I 1 ;e1 Single - Family Detached Townhome -Condo Single- Family Detached Townhome -Condo Sponsored by Royal Credit Union I www.rcu.org ©2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS ®. Powered by tOK Research and Marketing. Click for Table of Contents 5 2010 Annual Report on the Twin Cities Housing Market flew R Construction Review MINNEAPOLIS AR Association ion REALTORS` I 1 98% 1 97% Y -` 8.1 , V-X%W 7.6 1 7.0 1 95% 1 5.3 1 1 93% 1 ' 91% I 89% 1 I I 87% 1 -2006 1 -2007 1 -2006 1 -2009 1 -2010 New Construction Previously Owned MM (/Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS ®. Powered by 1 0K Research and Marketing. I Click for Table of Contents 1 6 'I Top MLS Areas: New Construction Market Share Jun ' 0� 4 71 9 ' 302 - MPLS - Central 38.8% � , 741 - SP- Downtown Stp /Capital Hg 32.5% Drop in Inventory from Peak Peak in Homes for Sale P �' ' 398 - Victoria 1 28.8% 28.5% New Construction New Construction , 307 - MPLS - Phillips 27.3% ' 341 - Wright County (Excluding Buffalo) 760 - Ramsey 26.6% New Construction Homes for Sale 1 705 - Lino Lakes/Hugo /Centerville 25.8% 650 - Belle Plaine 25.0% 7,000 ' 394 - Carver County 24.6% 756 - Elk River 24.4% 367 - Hennepin -North 24.1% 9,000 ' 310 -MPLS - University 23.4% 758 - Northwestern Anoka County 23.3% 1 754 - Big Lake Township 22.8% 5,000 ' 646 - Jordan 22.7% 1 340 - Buffalo 22.3% 4.000 ; 805 - Western Wisconsin 21.9% 1 630 - Northfield 21.4% ' 780 - Sherburne County 21.3% I 397- Chaska 20.1% ' 642 - Prior Lake 19.4% 1 709 - Forest Lake Area 19.1% " ° 1 711 - Southern Chisago County 19.0% . -zoaa 1 -2007 1 -2008 1 -2009 1 -2010 I 1 8.3 7.0 95.4% 1 92.4% Year End Months Supply Year End Months Supply 1 ' Pct. Of Orig. Price Received � Pct. Of Orig. Price Received Previously Owned New Construction Previously Owned 1 New Construction 1 Percent of Original Price Received Year End Months Supply 1 t New Constructio7 a Previously Owned 2006 12007 ■2008 ■2009 ■2010 1 101% 1- I 1 98% 1 97% Y -` 8.1 , V-X%W 7.6 1 7.0 1 95% 1 5.3 1 1 93% 1 ' 91% I 89% 1 I I 87% 1 -2006 1 -2007 1 -2006 1 -2009 1 -2010 New Construction Previously Owned MM (/Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS ®. Powered by 1 0K Research and Marketing. I Click for Table of Contents 1 6 Median Sales Price $233,000 $232,214 $222,500 Traditional $169,650 $162,000 Foreclosure $195,000 $166,950 a��c nnn Short Sales Sponsored by Royal Credit Union I w Provided (/ sponsored All data from Credit Union n I Provided by the Minneapolis Area Association of REALTORS ®. Powered by 10K Research and Marketing. I Click for Table of Contents 7 C% 2010 Annual Report on the Twin Cities Housing Market Distressed MINNEAPOLIS AREA Association Homes Review °fREALTORS® ° 23.6 /0 Top 10 MLS Areas: Distressed Market Share County 64.4% 39.9% — 784 - Northern Chisago 64.0% 305 - MPLS - North of Homes Sold in 2010 One Year Change In Sales 758 - Northwestern Anoka County 62.3% 61 7% were Distressed Distressed Homes 713 - Bethel 754 - Big Lake Township 61.2% 650 - Belle Plaine 60.6% Percent of Sales That Were Distressed 756 - Elk River Phalen 60.0% 59,9% 714 - SP- 742 - SP- Central 59.6% 43.1% 716 - SP- Hillcrest/Hazel Park/Dayton's Bluff 59.0% 39.9% Bottom 10 MLS Areas: Distressed Market Share 31.4% 748 - SP -Town and Country/Merriam Park 20.9% 702 - Falcon Hghts /Lauderdale /Rosedale 20.8% 391 - Saint Louis Park 20.0% 302 - MPLS - Central 19.5% 398 - Victoria 15.2% 750 - SP- Mac /Groveland /River Road 13.5% 10.3% 385 - Edina 13.3% 604 - Mendota/Lilydale /Mendota Heights 12.8% 3.6% el 309 - MPLS - Southwest 12.4% NNW I 752 - SP- Highland Area 10'4% 2006 2007 2008 2009 2010 ' 1111,a /0 - - - 26.1 o _ ° o 10.7 / - - - - - - - —29.6% - 24.6 Five Year Change in Price Five -Year Change in Price Five -Year Change in Price Five -Year Change in Price Traditional Properties Foreclosures Short Sales All Properties 2006 02007 0 200 112009 02010 Median Sales Price $233,000 $232,214 $222,500 Traditional $169,650 $162,000 Foreclosure $195,000 $166,950 a��c nnn Short Sales Sponsored by Royal Credit Union I w Provided (/ sponsored All data from Credit Union n I Provided by the Minneapolis Area Association of REALTORS ®. Powered by 10K Research and Marketing. I Click for Table of Contents 7 2010 Annual Report on the Twin Cities Housing Market e:� Distressed Home Sales MINNEAPOLIS AREA Association DJ REALTORS= Includes single - family detached homes, condominiums, townhomes and twin homes. Percentages are reflective of individual MLS districts. LEGEND 51.7% and above 40.3% - 51.6% 27 7%- 40 2% 27.61/. and belay RMLS Batdary 368 MLS Dena X Airport OaGEOu 710 341 762 707 ` T:. `7r ,AUA.,... AADO.TR NAN uN:e 'w "MINE ON aWME Y ST cRaA Ty s `^" 764 c .IEF V 1! 705 _ 340 ' * LINO �R" NUOO 727 DYRE LE To" T7 O EO ypMkm MAW 9.M WftD0IiA" 365 771 VHBN S"0" E`­ T+ DEUYom �'^'A^• 805 MARE M.�EN NGRn10Nl GRANT TM GROVE ?�8Y N�ILD 706 708 ORFENPCLD 368 -14' - -r. E� s LORE.TTO CRYM 765 -�• :� w .,� SILL nii 374 342 No MEDNA VIYNOUTH ,m ST. 702 CAIYOA 712 N"EMDE"GE MORE ANTHONY ­SEVILLE 725 "' "°°°R/ '^°°° NI MEDICINE 'Y ]0{ NE,G.TS MAR.EW000 oli ME T„s WAIN LOND LAKE UKE 373 LM.370 7d' ELW] �YyiynW 381 MAYtATA ET CA, a 300 70 144 3 LMDML T_ _01ION MI,TERTo""" MMNEMSTA LAw PAR" MINNF�S 7615 T40 391 703 .. 3 720 726 -° �.MDDD 387 309 304 762 3 $00 ruoaelRET MID. 11 O.TIEAGIA 1'iH . ;.NE —" EDINA 6AI1H SHOOK CYYJOO 385 R. 721 WYER VHG'uC'.A G „!E'%8 T 604 'e0Po SAINT NEwollr NEWGER~ "WR 398 cN.. -EN 3/ 396 392 380 379 : 722 `M 1"00NA 0,,, , PRMW 10C,NINGTCHI EAGAN 608 - `arTAG D.N»h cT_ 394 397 610 - 1. /�/ EHGN,a NoRrgoo `TT” J 640 WRNevEaa 617 PREFCOn tT%1NO COLOGNE DA M �E�°^ S AAOVEE w"IDA .r "P 6 614 616 o.E ONN. wrACR lar�. LAAa sAVAOE 612 APKE R06EMONNT :w NAaT,NG,� T'R \^L ay 642 618 626 T. T» AI EMELC 624 iMWNGTOM Tq I1.1/10N TER MENLLE A bh W— T,p C. ;Nad »°" 628 Tp ,­j 648 a 630 660 o...,..." vwRAb,a awN / • "M j+ YJTro T_ CMrHr Pr. '1Y!R A.NI a3 632 , �.N No. Sponsored by Royal Credit Union i www.rcu.org Cu 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS ®. Powered by 10K Research and Marketing. I Click for Table of Contents 1 8 2010 Annual Report on the Twin Cities Housing Market Sales Overview by Area MINNEAPOLIS AREA Association -f REALTORS' Total Change Perceld Percent New Percent Avg Days on Closed Sales from 2009 Townhome-Condo Construction Distressed Market Until Sale _ 300 - MPLS Calhoun -Isles 346 -22.1% - - - - - - - - 57.2% - - - - - - - - - - - 12.6% - - - - - 22.0% --- - - - - - - - - 156 301 - MPLS -Camden 606 -33.6% I 2.0% 1.4% 52.5% I 95 302 - MPLS - Central 508 -13.6% 1 99.1% 38.8% 19.5% 1 160 303 - MPLS - Longfellow 277 -28.4% I 3.7% 2.1% 22.7% I ' 74 304 - MPLS - Nokomis 628 -25.6% 1 5.8% 2.6% 24.4% 96 305 - MPLS - North 445 -33.1% , 2.1% 5.2% 64.0% 91 306 - MPLS - Northeast 376 -30.2% ' 10.5% 7.9% 30.3% ' 84 307 - MPLS - Phillips 98 -25.8% 38.4% 28.5% 58.2% 147 308 - MPLS - Powderhom 313 -42.8% I 15.7% 4.2% 44.7% I 97 309 - MPLS - Southwest 627 -13.2% 1 10.1% 2.0% 12.4% 1 115 310 - MPLS - University 92 -31.9% 1 46.1% 23.4% 21.7% I 128 340 - Buffalo 230 -17.3% ' 14.9% 22.3% 51.3% ' 126 341 - Wright County (Excluding Buffalo) 1,343 -16.2% 20.79A 27.3% 55.5% i 127 360 - Robbinsdale 175 -33.0% I 7.5% 5.0%. 36.0% ' 132 361 - Crystal 262 -31.9% 4.3% 2.5% 44.7% 96 362 - New Hope 181 -20.3% I 21.0% 7.6% 39.8% r 1 122 363 - Brooklyn Center 439 -35.1% 13.0% 0.9% 54.2% 91 364 - Brooklyn Park 1,137 -26.0% , 25.3% 10.2% 56.0% , 107 365 - Maple Grove/Osseo 934 -8.3% ' 39.4% 13.6% 25.3% ' 109 366 - Champlin 233 - 28.3% 1 21.3% 8.1% 39.5% 135 367 - Hennepin -North 140 -24.3% I 19.9% 24.1% 52.1% 167 368 - Hennepin- Northwest 192 + 3.2% 1 9.7% 18.8% 35.4% i 183 373 - Golden Valley 195 -23.5% I 19.5% 5.2% 25.6% I 134 374 - Plymouth 774 -8.0% 1 43.3% 8.8% 24.3% 1 114 378 - Richfield 355 -35.8% , 10.30/6 4.5% 36.1% , 103 379 - Bloomington -East 285 -19.7% 20.8% 10.7% 38.9% ' 110 380 - Bloomington -West 509 -6.4% 35.5% 2.3% 26.7% 137 381 - Lake Minnetonka 737 +4.7% 1 15.5% 12.4% 28.8% I 194 385 Edina 646 - 0.3% i 32.0% 5.7% 13.3% 154 386 - Hopkins 180 -8.2% I 53.7% 6.7% 45.6% I 121 387 - Minnetonka 558 -12.3% ' 40.0% 8.1 % 22.8% 1 132 391 - Saint Louis Park 505 -24.7% , , 26.9% 6.3°x6 20.0% , 126 392 - Eden Prairie 661 -14.5% I 45.5% 8.9% 28.1% I 140 394 - Carver County 398 -2.2% i 14.5% 24.6% 40.5% 1 140 396 - Chanhassen 276 -12.4% 1 37.5% 12.4% 23.9% r 141 397 - Chaska 288 -6.2% 1 36.7% 20.1% 39.6% 1 147 398 - Victoria 125 +35.9% , 18.4% 28.8% 15.2% , 128 600 - West St. Paul 179 -30.4% ' 19.9% 6.0% 40.2% ' 119 602 - South St. Paul 243 -24.8% 7.6% 6.4% 51.4% 108 604 - Mendota/Lllydale/Mendota Heights 125 -8.1% I 38.3% 10.6% 12.8% I 194 605 - Sunfish Lake 4 +300.0% 0.0% 0.0% 0.0% i 486 608 -Inver Grove Heights 269 - 9.1 % , 46.8% 6.0% 39.8% 1 134 633 - 14.7 °h 47.6% 5.2% 38.2% 1 121 610 - Eagan 584 -14.1% , 47.2% 5.6% 44.0% , 131 612 - Burnsville 609 -21.7% ' 53.0% 5.6% 37.3% ' 120 614 -Apple Valley 284 -18.6% i 35.4% 16.1 % 42.6% 129 616 - Rosemount 266 -10.7% I 37.6% 11.7% 48.5% 1 143 617 - Hastings 20 + 17.6% i 1.4% 2.7% 45.0% i 222 618 - Eastern Dakota County 26.3% 14.6% 49.2% I 124 624 - Farmington 415 645 -11.3% -5.0% , ' 26.8% 16.5% 36.1% ' 121 626 - Lakeville 19 +11.8% I 1.8% 16.7% 42.1 % ' , 212 628 - Southern Dakota County , 31.2% 21.4% 38.6% ' 173 630 - Northfield 215 353 -17.9% -12.8% 10.0% 16.6% 48.7% 135 632 - Rice County - -- - - - - - - - - L- - - - - - - - - - - - - - - - - - - - - - - -- - '- - - - - - - - - 'a7 Sponsored by Royal Credit Union I www.rcu.org L(� /{ 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 9 2010 Annual Report on the Twin Cities Housing Market MINNEAPOLIS AREA ASSOCIation Sales Overview by Area (cont.) °f REALTORS' CSponsored by Royal Credit Union I www.rcu.org ®2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS®. Powered by 10K Research and Marketing. I Click for Table of Contents 1 10 Total Change Percent Percent New Percent Avg Days an Closed Sales from 2009 Townhome -Condo Construction Distressed Market Until Sale -- - - - - - - - - - - - - - - - - -- 640 - Shakopee - - - - - - - 586 - - - - - - - -16.9% - - 1 - - - o - - - 44.9% - - - 15.7% 46.6% 112 642 - Prior Lake 434 -7.9% 31.0% 19.4% 43.8% 157 644- Savage 320 -24.0% 28.8% 12.0% 39.7% � 132 646 - Jordan 84 +3.7% n 7.5% 22.7% 53.6% I 169 648 - New Prague/New Market/Elko 223 -22.8% 14.5% 24.9% 56.1% 1 165 650 - Belle Plaine 132 +3.1% 1 8.0% 25.0% 60.6% 120 658 - Le Sueur/Rlce 2 0.0% 4.8% 5.1% 100.0% ' 234 660 - Goodhue County 376 +4.7% 11.0% 10.5% 35.4% 182 702 - Falcon Hghts/Lauderdale/Rosedale 317 -9.4% n 26.1% 5.6% 20.8% 1 127 705 - Lino Lakes/Hugo /Centerville 503 0.0% 33.5% 25.8% 39.0% 1 126 706 - North Central Surburban 275 +5.0% 1 42.5% 6.0% 31.6% 1 157 707 - Ham Lake 159 +1.9% ' 4.5% 1 7.1 % 51.6% 1 159 708 - White Bear Area 415 -19.9% , 23.8% 8.2% 29.4% 141 709 - Forest Lake Area 330 -9.3% ' 21.7% 19.1% 57.3% 1 150 710 - Northeast Anoka County 72 -23.4% 0.6% 15.4% 51.4% i 137 711 - Southern Chisago County 402 -8.0% I 7.8% 19.0% 58.7% 1 154 712 - Maplewood/North St. Paul 496 -16.6% 1 23.1% 8.9% 46.6% 1 134 713 - Bethel 107 -33.5% 0.3% 16.3% 61.7% 1 134 714 - SP- Phalen 436 -24.4% ' 4.5% 4.6% 59.9% 1 111 716 - SP- Hillcnest/Hazel Park/Dayton's Bluff 710 -27.6% 1 % 2.9% 59.0% 1 103 720 - SP-Southeast St. Paul 107 -24.6% 1 . 11.4% 3.1 % 56.1 % 1 113 721 - Lakeland/Afton/Denmark 69 -6.8% i 2.1% 6.0% 34.8% i 196 722 - Newport/St. Paul Park/Cottage Grove 501 -19.6% n 19.2% 11.2% 48.7% 1 116 725 - Pine Springs/Lake Elmo /Oakdale 427 +0.5% 37.9% 5.9% 40.3% 1 135 726 - Woodbury 857 -14.0% 44.6% 16.3% 32.2% 1 124 727 - Stillwater/Bayport 489 -0.6% 1 21.1% 15.0% 25.8% 1 163 728 - SP- Riverview /Cherokee 133 -37.6% 7.1% 4.7% 41.4% 127 738 - SP -Home Croft/W 7Th 92 -17.9% 1 5.7% 3.3% 33.7% 1 105 740 - SP- Crocus Hill 159 -16.8% i 60.5% 7.6% 23.9% � 163 741 - SP- Downtown Stp/Capital Hg 139 +1.5% 1 97.2% 32.5% 23.0% n 205 742 - SP- Central 307 -36.0% 1 5.2% 2.0% 59.6% ' 107 744 - SP -Como 167 -27.7% 6.6% 2.7% 24.0% 95 746 - SP-St. Anthony /Midway 167 -25.8% 1 14.5% 9.0% 31.1% 1 98 748 - SP -Town and Country/Merriam Park 86 -26.5% i 7.2% 3.2% 20.9% 104 750 - SP- Mac /Groveland/River Road 215 -11.9% 1 7.9% 0.8% 13.5% 1 97 752 - SP- Highland Area 193 -25.8% 13.2% 6.1% 10.4% 1 117 754 - Big Lake Township 237 -36.8% 1 5.9% 22.8% 61.2% 1 107 756 - Elk River 315 -18.2% ' 24.9% 24.4% 60.0% 1 124 758 - Northwestern Anoka County 231 -24.5% 12.1% 23.3% 62.3% 147 760 - Ramsey 322 -12.3% n 29.8% 26.6% 58.4% n 117 762 - Andover 382 -8.2% 10.0% 17.3% 43.2% 138 764 - Blaine 768 -13.2% 1 32.7% 18.7% 40.8% n 112 765 - Arden HIIis/Shoreview 332 -11.2% 1 40.9% 2.5% 22.0% 128 766 - Moundsview/New Brighton/St.Anthony 301 -19.1% 1 28.3% 5.3% 27.9% 1 122 767 - Coon Rapids 731 -16.3% 1 36.4% 8.3% 58.8% 1 113 768 - Fridley 206 -31.3% i 19.3% 1.6% 48.1% 124 769 - Anoka 166 -27.5% I 14.5% 6.2% 53.0% I 92 770 - Hilltop /Columbia Heights 243 - 26.8% 12.7% 7.4% 51.9 °i6 i 105 771 - Spring Lake Park 60 -29.4% n 21.2% 2.0% 40.0% 1 103 772 - Lexington/Circle Pines 65 -30.9% 1 30.5% 9.1% 49.2% 1 136 780 - Sherburne County 505 -10.1% 1 5.0% 21.3% 58.8% 132 805 - Western Wisconsin • - - - - - - - - - - - - - - - - -- 852 - - - - - - - - -13.1% - - - - - - - 1 - - 1 - 18.6% - - - - - - - 21.9% - - - - 45.8% 1 193 ' CSponsored by Royal Credit Union I www.rcu.org ®2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS®. Powered by 10K Research and Marketing. I Click for Table of Contents 1 10 2010 Annual Report on the Twin Cities Housing Market MINNEAPOLIS AREA Association Price Overview by Area °f REALTORS` WAS Sponsored by Royal Credit Union I www.rcu.org ®2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS®. Powered by t OK Research and Marketing. I Click for Table of Contents 1 11 Median A Average P Pct of Orig A Avg Total A Avg Price Per M Months Supply Sales Price S Sales Price L List Price Ree F Finished SgFt S Square Foot o of Inventory •-------------------------------------- - ---- - -T--- -- --- - --- --- --�- - - - - -- -- 300 - MPLS - Calhoun -isles $ $258,000 $ $395,431 9 92.0% 1 1,987 $ $176 9 9.9 301 - MPLS - Camden $ $71,600 $ $81,179 9 92.5% 1 1 1,384 $ $60 I I 6 6.5 302 - MPLS - Central $ $242,350 $ $303,770 9 92.6% 1 1,379 $ $210 7 7.9 303 - MPLS - Longfellow $ $169,850 $ $174,556 9 95.3% 1 1 1,381 $ $135 1 1 5 5.0 304 - MPLS - Nokomis $ $190,000 $ $200,473 9 94.0% 1 1 1,534 $ $130 1 1 5 5.5 305 - MPLS - North $ $54,450 $ $69,014 9 94.5% 1 1,567 $ $44 j j 5 5.6 306 - MPLS - Northeast $ $153,000 $ $153,534 9 93.3% 1 1 1,465 $ $106 1 1 5 5.4 307 - MPLS - Phillips $ $110,000 $ $96,542 9 94.3% 1 1,450 $ $71 6 6.1 308 - MPLS - Powderhom $ $125,000 $ $122,390 9 93.4% 1 1 1,425 $ $88 1 1 7 7.2 309 -MPLS - Southwest $ $275,000 $ $329,827 9 92.9% 1 1 1,902 $ $170 1 1 4 4.8 310 - MPLS - University $ $190,000 $ $210,318 9 92.0% 1 1 1,550 $ $147 i i 6 6.5 340 - Buffalo $ $150,000 $ $163,977 9 91.2% 1 1 2,048 $ $88 1 1 7 7.1 341 - Wright County (Excluding Buffalo) $ $153,000 $ $169,373 9 92.2% 1 1,972 $ $92 6 6.8 360 - Robbinsdale $ $132,500 $ $132,424 9 90.6% 1 1 1,573 $ $90 1 1 8 8.9 361 - Crystal $ $139,900 $ $137,528 9 92.7% 1 1,665 $ $88 i i 7 7.6 362 - New Hope $ $148,450 $ $154,173 9 90.9% 1 1 1,733 $ $92 I I 7 7.2 363 - Brooklyn Center $ $110,000 $ $108,210 9 95.9% 1 1 1,659 $ $67 6 6.8 364 - Brooklyn Park $ $141,000 $ $148,722 9 94.0% I I 1,943 $ $78 1 1 5 5.1 365 - Maple Grove/Osseo $ $250,000 $ $297,000 9 93.6% 1 1 2,383 $ $116 1 1 6 6.0 366 - Champlin $ $173,500 $ $193,466 9 94.0% 2 2,100 $ $94 1 1 7 7.6 367 - Hennepin -North $ $212,275 $ $217,993 9 91.6% 1 1 2,336 $ $95 1 1 8 8.9 368 - Hennepin- Northwest $ $304,900 $ $413,778 9 91.7% i i 3,145 $ $119 1 1 1 10.9 373 - Golden Valley $ $235,000 $ $265,932 9 91.4% 1 1 2,334 $ $115 1 1 9 9.6 374 - Plymouth $ $249,000 $ $283,822 9 92.3% 1 1 2,407 $ $118 1 1 6 6.1 378 - Richfield $ $160,000 $ $159,239 9 92.5% 1 1,641 $ $101 6 6.7 379 - Bloomington -East $ $158,000 $ $157,705 9 93.1% 1 1 1,626 $ $104 1 1 6 6.1 380 - Bloomington -West $ $206,950 $ $220,291 9 91.1% i i 2,101 $ $109 6 6.3 381 - Lake Minnetonka $ $350,000 $ $529,275 8 88.5% 1 1 3,055 $ $167 1 1 1 10.6 385 -Edina $ $339,000 $ $433,910 9 90.9% 2 2,596 $ $162 1 1 6 6.5 386 - Hopkins $ $150,350 $ $185,264 8 89.9% 1 1 1,692 $ $102 1 1 4 4.8 387 - Minnetonka $ $265,000 $ $296,373 9 91.6% 1 1 2,416 $ $119 1 1 7 7.4 391 - Saint Louis Park $ $213,703 $ $225,315 9 92.8% ; ; 1,632 $ $138 7 7.0 392 - Eden Prairie $ $265,000 $ $331,822 9 91.6% 1 1 2,649 $ $120 1 1 7 7.5 394 - Carver County $ $193,000 $ $212,933 9 91.6% 1 1. 2,131 $ $102 8 8.6 396 - Chanhassen $ $313,500 $ $364,768 9 92.3% 1 1 2,646 $ $125 1 1 6 6.5 397 - Chaska $ $212,000 $ $235,526 9 91.8% 1 1 2,298 $ $99 6 6.6 398 - Victoria $ $372,000 $ $384,594 9 93.9% , , 3,147 $ $122 1 1 5 5.3 600 - West St. Paul $ $137,000 $ $139,699 9 90.0% 1 1 1,628 $ $86 1 1 7 7.0 602 - South St. Paul $ $133,750 $ $128,117 9 91.7% 1 1,594 $ $85 6 6.8 604 - Mendota/Ulydale/Mendota Heights $ $295,000 $ $324,583 9 90.1% I I 2,609 $ $125 1 1 8 8.6 605 - Sunfish Lake $ $300,000 $ $415,500 8 89.1% 3 3,475 $ $163 1 1 7 7.0 608 - Inver Grove Heights $ $166,838 $ $200,652 9 91.6% 1 1 2,136 $ $98 1 1 6 6.2 610 - Eagan $ $189,000 $ $208,421 9 92.5% 1 1 2,088 $ $100 1 1 7 7.0 612 - Burnsville $ $169,500 $ $180,194 9 91.2% 2 2,010 $ $88 8 8.2 614 - Apple Valley $ $179,000 $ $202,594 9 93.2% 1 1 2,069 $ $96 1 1 5 5.5 616 - Rosemount $ $203,000 $ $231,126 9 92.8% 1 1 2,176 $ $101 6 6.8 617 - Hastings $ $147,513 $ $165,448 9 92.2% 1 1 1,888 $ $91 1 1 6 6.9 618 - Eastern Dakota County $ $206,000 $ $217,864 7 78.9% 2 2,110 $ $99 2 2.9 624 - Farmington $ $172,564 $ $183,486 9 93.8% 1 1 2,067 $ $93 1 1 6 6.4 626 - Lakeville $ $222,500 $ $249,539 9 93.3% 1 1 2,439 $ $103 1 1 6 6.5 628 - Southern Dakota County $ $200,000 $ $221,277 8 87.9% 2 2,186 $ $100 ; ; 4 4.9 630 - Northfield $ $165,000 $ $185,947 8 89.9% 1 1 2,101 $ $93 1 1 1 10.9 632 - Rice County $ $134,000 $ $141,793 9 90.5% i i 1,980 $ $78 8 - J - 8.1 WAS Sponsored by Royal Credit Union I www.rcu.org ®2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS®. Powered by t OK Research and Marketing. I Click for Table of Contents 1 11 Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 12 2010 Annual Report on the Twin C Cities H Housing Market MINNEAPOLIS AREA Association Price Overview b by Area (cont.) ° °f REALTORS' Median A Average P Pct of Orig A Avg Total A Avg Price Per Months Supply Sales Price S Sales Price U Ust Price Rec F Finished SqR S Square Foot of I Inventory - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 640- Shakopee $ $180,000 $ $196,287 9 93.9% i 2 2,076 $ $99 6 6.0 642 - Prior Lake $ $240,422 $ $290,006 9 91.5% 1 2 2,643 $ $111 1 7 7.8 644- Savage $ $200,095 $ $219,617 9 93.5% i 2 2,248 $ $100 8 8.6 646 - Jordan $ $177,500 $ $192,904 9 90.7% I 2 2,239 $ $87 1 8 8.3 648 - New Prague/New Market/Elko $ $191,000 $ $207,764 9 91.1% I 2 2,306 $ $92 1 7 7.5 650 -Belle Plaine $ $142,000 $ $140,906 9 91.7% 1 1 1,802 $ i 5.6 658 - Le Sueur/Rice $ $63,175 $ $63,175 8 80.5% I 2 2,399 $ $49 1 1 1.0 660 - Goodhue County $ $134,700 $ $152,637 8 88.1% 2 2,064 $ $83 , 9 9.8 702 - Falcon Hghts/Lauderdale/Rosedale $ $195,000 $ $214,256 9 90.8% 1 1 1,799 $ $116 1 7 7.2 705 - Lino Lakes/Hugo /Centerville $ $175,000 $ $202,964 9 92.6% 2 2,054 $ $100 6 6.7 706 - North Central Surburban $ $183,750 $ $260,238 9 90.1% I 2 2,215 $ $106 1 7 7.8 707 - Ham Lake $ $235,000 $ $242,444 9 92.6% 2 2,488 $ $100 1 6 6.8 708 - White Bear Area $ $185,000 $ $225,947 9 91.8% 1 2 2,085 $ $111 , 9 9.3 709 - Forest Lake Area $ $150,000 $ $176,110 9 91.5% 1 2 2,110 $ $91 1 7 7.5 710 - Northeast Anoka County $ $170,500 $ $176,032 9 93.8% 1 1,995 $ $94 1 7 7.7 711 - Southern Chisago County $ $145,000 $ $158,835 9 90.0% 1 1 1,914 $ $89 1 9 9.7 712 - Maplewood/North St. Paul $ $154,900 $ $166,400 9 92.5% i 1 1,777 $ $94 1 7 7.7 713 - Bethel $ $150,000 $ $156,099 9 90.1% 1 2 2,090 $ $85 1 8 8.1 714 - SP- Phalen $ $87,000 $ $92,256 9 92.6% 1 1 1,478 $ $63 1 5 5.6 716 - SP- Hlllcrest/Hazel Park/Dayton's Bluff $ $95,000 $ $96,591 9 93.8% 1 1,443 $ $68 1 5 5.6 720 - SP- Southeast St. Paul $ $137,500 $ $143,314 9 93.4% 1 1 1,743 $ $83 1 6 6.7 721 - Lakeland /Afton/Denmark $ $244,900 $ $338,276 8 89.4% 2 2,871 $ $128 i 1 10.8 722 - Newport/St. Paul Park/Cottage Gro' $ $167,000 $ $188,837 9 94.2% 1 2 2,000 $ $95 1 5 5.8 725 - Pine Springs/Lake Elmo /Oakdale $ $175,000 $ $206,273 9 92.4% 1 2 2,022 $ $100 1 6 6.3 726 - Woodbury $ $242,075 $ $258,371 9 92.9% 1 2 2,434 $ $105 1 6 6.5 727 - Stillwater/Bayport $ $248,000 $ $273,843 9 90.4% 1 2 2,395 $ $120 1 9 9.2 728 - SP- Riverview /Cherokee $ $115,000 $ $112,616 9 91.9% 1 1 1,394 $ $82 1 8 8.2 738 - SP -Home Croft/W 7Th $ $137,500 $ $124,488 9 93.2% 1 1 1,388 $ $90 I 5 5.9 740 - SP- Crocus HIII $ $219,500 $ $278,056 8 89.5% i 2 2,061 $ $141 8 8.9 741 - SP- Downtown Stp/Capital Hg $ $162,000 $ $173,336 8 89.9% 1 1 1,169 $ $155 1 9 9.0 742 - SP- Central $ $65,000 $ $74,769 9 94.5°x6 1 1 1,374 $ $56 1 5 5.4 744 - SP -Como $ $175,000 $ $172,112 9 93.5% 1 1 1,504 $ $114 i 7 7.1 746 - SP -St. Anthony /Midway $ $147,200 $ $154,289 9 94.0% 1 1 1,441 $ $114 1 5 5.8 748 - SP -Town and Country/Merriam Park $ $207,500 $ $258,715 9 93.7% i 1 1,916 $ $142 1 7 7.9 750 - SP- Mac/Groveland/River Road $ $251,000 $ $295,995 9 92.6% 1 1 1,775 $ $168 1 4 4.0 752 - SP- Highland Area $ $234,750 $ $272,426 9 92.6°x6 1 1,776 $ $150 1 7 7.1 754 -Big Lake Township $ $143,000 $ $152,693 9 93.5% 1 1 1,887 $ $88 1 6 6.4 756 - Elk River $ $159,950 $ $172,406 9 92.2% I 2 2,103 $ $85 ' 8 8.0 758 - Northwestern Anoka County $ $166,500 $ $182,432 9 91.7 °x6 1 2 2,113 $ $91 7 7.6 760 - Ramsey $ $158,000 $ $176,144 9 93.1% 1 2 2,106 $ $86 1 5 5.7 762 - Andover $ $204,000 $ $220,682 9 92.5% 1 2 2,295 $ $98 6 6.2 764 - Blaine $ $170,000 $ $198,823 9 93.6% 1 2 2,057 $ $99 1 6 6.6 765 - Arden Hills/Shoreview $ $213,000 $ $239,630 9 92.0% 2 2,012 $ $115 1 5 5.9 766 - Moundsview/New Brighton/StAnthony $ $178,000 $ $184,018 9 91.4% 1 1 1,802 $ $103 1 7 7.4 767 - Coon Rapids $ $133,500 $ $138,424 9 92.4% 1 1 1,778 $ $81 1 6 6.7 768 - Fridley $ $136,545 $ $139,693 9 90.9% 1 1,723 $ $87 7 7.9 769- Anoka $ $136,156 $ $135,858 9 92.5% 1 1 1,723 $ $87 1 7 7.8 770 - Hilltop /Columbia Heights $ $120,000 $ $117,745 9 92.1% 1 1 1,503 $ $84 7 7.9 771 - Spring Lake Park $ $132,025 $ $139,564 9 91.9% I 1 1,695 $ $86 1 6 6.9 772 - Lexington/Circle Pines $ $133,500 $ $143,892 9 91.0% 1 1 1,687 $ $90 1 7 7.9 780 - Sherburne County $ $151,250 $ $163,643 9 92.1 % 1 2 2,054 $ $87 1 6 6.8 805 - Western Wisconsin $ $161,922 $ $190,931 9 90.4% 1 2 2,090 $ $94 1 1 11.5 Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 12 2010 Annual Report on the Twin Cities Housing Market Median Home Prices Includes single - family detached homes, condominiums, townhomes and twin homes. LEGEND $208,626 and above $169,676 - $208,625 $137,501- $169,675 $137,500 and below RMLS Boundry 368 MILS District X Ai Port 782 ZiMMERMMI 5TnN19o:E .( Nn�.n: pd Lara C 711 T'_ V Onad —T" T4.p Twp T"R @ETHEL STAGY Ccil @HAFER Backu 780 ST FRANCIS rV�P LINDSTROM V ' BECKER 758 EAST BETHEL ° CNc" Fn T" @� 754 T" 756 Q G E 713 L "' XD, Ohr L.k. 7 ELK RIVER Tay ' M C EOLA {pNTIOELLO 'z_ "* 710 709 762 FOREST Fsmr:pbn 341 Mo tl akF O REDO 760 �� �. LAKE T.p MaFla 4M Twp ANODVER U. ALBEAr MLE Try 76 T" raR 767 7BLNHE eoT. — BBBFFA O 340 ST MICHAEL 366 COON • 64 CENTERVILLE 705 T CMAMPLIN . APIDs CIRCLE " N SPRING PINES LINO LAKES BROOKLYN "k LE%INOTON 772 SCMER6ET T. M T P 364 \ 77, DELON @cnrnM Tnp` ROCKFORD 768 TX OAKS Tap 8O5 C RY >LLY 706 708, WKVERLY ^I' ''°` 363 BRIGHTON MONTROSE STAL : n0 768 "` BT32WA>T *w 301 "wio n' DEL�F+O K2 360 cnrADA wRrH 1 sT 702 _wwe�1 WaerflaM FtalAkn RO@9:NSrIALE ANTHONY ROSEVRIE 712 nAi 725 r✓+p :x "� Tap 306 306 NEIGNTS MAPLEWGOG OAMKE E r LAUDERDALE 714 jJ 010 744 742 716 "kTRr 744 SAINT PAUL "P HUD" wnruTOWN PODS �e 748 T41 tzB 'a�eaxwi°i4 wrnwn NHS 308 728 x Tu 726 � �87 eea ST - -. M'h387 A 304 sou HGODBURY TwP MAYER ,. h. _ SL':OMINOTON EAGAN GnT y Ar- xt T NEYn'QR 2 NEW GERMAY PAVL 390 ' ' L.b 380 722 606 : • ?wc CWA COPA.:i CaROan WACOIVM . s„ F ��. 610 E ORO:'L 4 �w 394 �� �J HEGX� C 640 BURN8VRLE 614 617 PPE,00rT mO coLOGNE OaNpnn T �TI+V SHAAOPEE 644 616 gkGrava CMVER SAVAGE 612 APPLE ROEEMOUNT N HMn",6 T" Tap Twp T_ VALLEY H-W.0 COATES 618 1 NancoL 'San F:airsce E.MGa.k ETA YERNILIION Rar°mt > "` �. p N 624 V.RN..n up 646 FAPMINGTON Twp M Lawrvnw TRP H_ iLAMPTON TRIER MtESNLLE VA kK BELLE T" PLANE Thp Ta+P T 65O H �, Lila i.rp MMrFT ELKO Eweb iv" CaeTb�RW "aT"'P n 628 Owprl PRAG °E 648 630 ­660 RaW.0 RANDOL PH T, FALLS Twp y Tap�E WMafne GiNrnar w1_1 9anu . Ty TW WT�.I Txp Tap hc.. Camon Fab Twp D.r, nr HEIDELBERG SIiMOn Tap TW LGNDALE 632 T ( " -��LE SUEUR 658 MINNEAPOLIS AREA Association -f REALTORS' 784 S NORTfINELD Sn' Sponsored by Royal Credit Union I www.rcu.org // ©2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 13 2010 Annual Report on the Twin Cities Housing Market Home Price Per Square Foot Shows the closing sales price relative to total finished square footage. LEGEND - $ $115 and above $98 -$114 $87-S97 I $86 and below RMLS Boundary 368 M MLS District MINNEAPOLIS AREA Association of REALTORS` 784 To rY[u Z11^11 UN C T~U~ 711 aMM L.n ,~ 780: s1ACV CCN?ER s—L. s7 FAANCRi 7r—. EL CRY TwT 11N0[TAOM BEO�A EAST BETHEL LFnRaA WT q CHI F —j Tp BiG 754 �° 756 �„» 758 713 EL—EA Thp 710 709 MP � MONTIGELLO ^ 'z ry,�6 \ \� oTstoo..� FOREYT 762 707 °°� "` ""»°'" E� 0 341 YRnb.» OT.lAG 760 ~ Wp. LNa T~ ANGOV[R MAY LANE Fup Twp Tire KB[�ill! 76 RJNb Ty [LAIN! 5T W° L NTMP^.E367 767 764 CENTFRVRLE 705 '~ BUFFALO 340 3" x °°" A NANOYE cW ft. ARDB Cam; L:NOLMLLB NUOO l sPR, B ERSET BRAW�KNYN � LE —G,om 772 RReI/.nl WN» BFN 364 `771 v�Ew TN oAAS "" °E Eo.n.n.L 805 FG ROC[RG 768 _ 708 708 T~ 1M"LY 363 CMGLTOM 1RJNTROBE 1M "'Z vN w 36 ER ,77 71$6 2�2 ll360 �1 '�'yE LEA .ioRrN • _ Er. 712 Nw. w.ea.n^ FY,YY RL7eaR0C06 3N V `NT 725 T..9 iLrR ( � 706 YAPLEVAOD OAA0.4E 744 742 714 eLFa 746 SAINT PAUL 716 UN°F1 L kuo VMT[RTOWN Eo7 - POLI ,Y� W11 7f 720 7ll 726 Ef u' �- YNOOEU., 60 -YE' kF B N SNkr N[wroRT NEWGERYANY ft- � PAUL L.bb^R 379 �° ` mut 722 cYNi.R yo G `A '"° 380 EAGAN 608 ""om 22AOe CO. T~ cHAAAA BLOOY:NOtoN >W 394 397 ' 610 . [B G "° ` ., 6ao Y�OlLt"IWOOiG�° COLOGNE L).Ay.. 6HAAORf! 644 BVRNBVELE 614 618 617 RAFawTr o.. cr... yy�+ Tw CARVER BI'J+:E /E RO"E .T .- I- ArsRrs Tq L.- PA 61L VRE T.. NABTEIO! W LLEV AYR RG �� CGATES 618 \y` ^ I- B.n *�.: DAN s..w* ;� 626E E ". Y[RYILLON 624 W,ni.n 646 s— nuLYRa oN T"R 9t L.wr.m. Two wp ' EW YIlBVAL! BELL! NA/IITIri fA:ER iwy RWNE M °R T�9 g.'4 PN+w r nF c.E.r NEW E— T.W C.MI R. Y Hiw�j n 628 - WF.ky ?wp LAM Tw YARNET E.xO h9 '�•�'M " 650 -A E 648 630 r, 660 R.na.dR CANNLM RAN(XA rH TN FALIa�J Ws. M E rvy wTE yV,rTY~l.rE T _ TY.A Twp p.rryrnrn HEI°f BERG^ Twp TO r 658 Lo—ALE 632 =r LE S—A &dpeW.t•r N.T R TT / ( Twp NOATNFleLG G, Sponsored by Royal Credit Union I www.rcu.org (/ ©2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 10K Research and Marketing. Click for Table of Contents 14 2010 Annual Report on the Twin Cities Housing Market MINNEAPOLIS AREA Association Historical Prices by Area' -f REALTORS' Sponsored by Royal Credit Union 1 www.rcu.org 2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 15 2006 2007 2008 2009 2010 Change From 2009 Change From 2006 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -i- - - - - - - - - - - - - - - 300 - MPLS - Calhoun -Isles $263,500 $256,000 $240,900 $230,000 $258,000 +12.2% -2.1% 301 - MPLS -Camden $163,000 $129,459 $60,000 $51,950 $71,600 t +37.8% -56.1% 302 - MPLS - Central $270,050 $278,850 $275,945 $246,000 $242,350 -1.5% -10.3% 303 - MPLS - Longfellow $208,000 $210,500 $188,500 $171,550 $169,850 1 -1.0% -18.3% 304 - MPLS - Nokomis $225,000 $224,200 $208,000 $189,892 $190,000 1 +0.1% -15.6% 305 - MPLS - North $150,000 $91,000 $44,313 $38,400 $54,450 +41.8% -63.7% 306 - MPLS - Northeast $210,000 $197,388 $167,500 $150,500 $153,000 1 +1.7% -27.1% 307 - MPLS - Phillips $189,600 $165,478 $87,550 $88,200 $110,000 +24.7% -42.0% 308 - MPLS - Powderhom $184,000 $170,000 $119,900 $109,900 $125,000 I +13.7% -32.1% 309 - MPLS - Southwest $287,000 $309,000 $275,000 $260,000 $275,000 1 +5.8% -4.2% 310 - MPLS - University $240,000 $242,500 $203,000 $195,000 $190,000 , -2.6% -20.8% 340 - Buffalo $214,950 $195,000 $172,500 $145,000 $150,000 +3.4% -30.2% 341 - Wright County (Excluding Buffalo) $218,800 $210,160 $180,000 $156,000 $153,000 -1.9% -30.1% 360 - Robbinsdale $200,000 $203,000 $160,025 $148,750 $132,500 I -10.9% -33.8% 361 - Crystal $198,000 $193,650 $161,000 $140,250 $139,900 -0.2% -29.3% 362 - New Hope $227,300 $220,000 $186,000 $158,000 $148,450 I -6.0% -34.7% 363 - Brooklyn Center $192,675 $174,300 $115,500 $90,000 $110,000 1 1. +22.2% -42.9% 364 - Brooklyn Park $230,000 $220,000 $174,600 $135,000 $141,000 +4.4% -38.7% 365 - Maple Grove /Osseo $247,000 $253,750 $247,900 $219,348 $250,000 1 +14.0% +11.2% 366 - Champlin $234,000 $218,111 $199,900 $162,000 $173,500 +7.1% - 25.9% 367 - Hennepin -North $291,000 $283,800 $249,900 $225,000 $212,275 I -5.7% -27.1% 368 - Hennepin - Northwest $377,000 $369,000 $310,000 $255,000 $304,900 +19.6% -19.1% 373 - Golden Valley $267,900 $272,400 $257,450 $220,000 $235,000 1 +6.8% -12.3% 374 - Plymouth $293,500 $294,000 $279,000 $253,500 $249,000 1 -1.8% -15.2% 378 - Richfield $223,000 $217,500 $185,500 $165,000 $160,000 -3.0% -28.3% 379 - Bloomington -East $225,000 $210,500 $180,000 $157,625 $158,000 1 +0.2% -29.8% 380 - Bloomington -West $247,000 $245,000 $226,000 $210,000 $206,950 -1.5% -16.2% 381 - Lake Minnetonka $475,000 $ 400,863 $385,000 $339,500 $350,000 I +3.1% - 26.3% 385 - Edina $389,500 $378,000 $387,500 $325,000 $339,000 +4.3% -13.0% 386 - Hopkins $205,900 $205,000 $170,000 $164,900 $150,350 1 -8.8% -27.0% 387 - Minnetonka $ 270, 000 $ 285,000 $263,500 $241,250 $265,000 1 +9.8% -1.9% 391 - Saint Louis Park $233,000 $ 233,500 $226,950 $212,500 $213,703 +0.6% -8.3% 392 - Eden Prairie $288,780 $315,000 $280,000 $251,125 $265,000 I +5.5% -8.2% 394 - Carver County $244,250 $232,000 $218,000 $186,000 $193,000 i +3.8% -21.0% 396 - Chanhassen $295,000 $317,143 $295,000 $280,000 $313,500 1 +12.0% +6.3% 397 - Chaska $233,150 $246,000 $230,500 $178,500 $212,000 1 +18.8% -9.1% 398 - Victoria $ 475, 000 $ 407,500 $401,000 $326,950 $372,000 +13.8% -21.7% 600 - West St. Paul $203,175 $189,000 $163,000 $134,900 $137,000 1 +1.6% -32.6% 602 - South St. Paul $197,000 $182,000 $159,000 $132,000 $133,750 +11.3% -32.1% 604 - Mendota/Lilydale /Mendota Heights $371,000 $382,500 $294,000 $260,000 $295,000 1 +13.5% -20.5% 605 - Sunfish Lake $696,500 $1,110,000 $1,051,250 $830,000 $300,000 - 63.9% -56.9% 608 - Inver Grove Heights $205,900 $209,900 $190,000 $165,751 $166,838 1 +0.7% -19.0% 610 - Eagan $237,900 $242,000 $215,000 $183,000 $189,000 1 +3.3% -20.6% 612 - Burnsville $232,900 $225,000 $201,647 $175,000 $169,500 i -3.1% - 27.2% 614 - Apple Valley $226,500 $224,900 $205,000 $171,250 $179,000 I +4.5% -21.0% 616 - Rosemount $248,900 $244,900 $216,900 $194,000 $203,000 i +4.6% -18.4% 617 - Hastings $201,325 $196,000 $175,000 $150,000 $147,513 1 -1.7% -26.7% 618 - Eastern Dakota County $248,300 $250,000 $288,500 $240,000 $206,000 -14.2% -17.0% 624 - Farmington $232,250 $224,000 $195,730 $174,950 $172,564 1 -1.4% -25.7% 626 - Lakeville $ 279,700 $262,000 $250,000 $224,638 $222,500 1 -1.0% -20.5% 628 - Southern Dakota County $237,300 $238,000 $256,500 $170,000 $200,000 +17.6% -15.7% 630 - Northfield $220,850 $215,075 $189,000 $171,425 $165,000 I -3.7% -25.3% 632 - Rice County $188,000 $172,500 $148,500 $140,100 $134,000 -4.4% -28.7% Sponsored by Royal Credit Union 1 www.rcu.org 2011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 15 2010 Annual Report on the Twin Cities Housing Market Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 16 MINNEAPOLIS AREA Association Historical Prices by Area (cont.) °f REALTORS` Change Change 2006 2007 2008 2009 2010 From 2009 From 2006 •-------------------------------------------------------1--------------- 640 - Shakopee $218,900 $220,050 $199,875 $175,000 $180,000 +2.9% -17.8% 642 - Prior Lake $279,450 $277,000 $264,400 $240,000 $240,422 +0.2% -14.0% 644- Savage $267,500 $257,000 $241,000 $212,000. $200,095 t -5.6% -25.2% 646 - Jordan $250,650 $250,000 $219,950 $202,000 $177,500 -12.1% -29.2% 648 - New Prague/New Market/Elko $267,900 $243,725 $226,800 $205,000 $191,000 1 -6.8% -28.7% 650 - Belle Plaine $213,700 $207,900 $175,250 $149,950 $142,000 1 -5.3% -33.6% 658 - Le Sueur /Rice $189,950 $242,000 $260,600 $178,250 $63,175 -64.6% -66.7% 660 - Goodhue County $174,313 $165,000 $148,000 $145,500 $134,700 I -7.4% -22.7% 702 - Falcon Hghts/Lauderdaia/Rosedale $246,288 $237,400 $225,000 $201,900 $195,000 -3.4% -20.8% 705 - Lino Lakes/Hugo /Centerville $264,950 $250,000 $219,366 $180,200 $175,000 1 -2.9% -33.9% 706 - North Central Surburban $260,000 $249,000 $219,950 $190,500 $183,750 - 3.5% -29.3% 707 - Ham Lake $345,000 $315,000 $275,000 $236,000 $235,000 1 -0.4% -31.9% 708 - White Bear Area $245,000 $235,000 $220,000 $180,000 $185,000 1 +2.8% -24.5% 709 - Forest Lake Area $243,543 $237,250 $204,500 $154,500 $150,000 -29% -38.4% 710 - Northeast Anoka County $279,950 $255,453 $205,000 $197,000 $170,500 I -13.5% -39.1% 711 - Southern Chisago County $211,000 $209,900 $173,000 $154,818 $145,000 -6.3% -31.3% 712 - Maplewood/North St. Paul $222,000 $205,897 $185,000 $160,000 $154,900 1 -3.2% -30.2% 713 - Bethel $237,000 $214,500 $176,200 $152,500 $150,000 1 -1.6% -36.7% 714 - SP- Phalen $176,950 $160,000 $100,000 $85,000 $87,000 1 +2.4% -50.8% 716 - SP- Hillcrest/Hazel Park/Dayton's Bluff $175,000 $164,800 $98,700 $94,300 $95,000 1 +0.7% -45.7% 720 - SP-Southeast St. Paul $217,200 $182,000 $170,000 $149,475 $137,500 -8.0% -36.7% 721 - Lakeland/Afton/Denmark $325,000 $270,000 $244,000 $237,800 $244,900 1 +31.0% -24.6% 722 - Newport/St. Paul Park/Cottage Grove $227,400 $217,050 $189,210 $168,000 $167,000 -0.6% -26.6% 725 - Pine Springs/Lake Elmo /Oakdale $227,500 $228,450 $197,000 $167,100 $175,000 1 +4.7% -23.1% 726 - Woodbury $282,400 $267,575 $264,000 $238,375 $242,075 ' +1.6% -14.3% 727 - Stillwater /Bayport $300,000 $295,000 $285,000 $225,000 $248,000 1 +10. 2% -17.3% 728 - SP- Riverview /Cherokee $187,000 $179,500 $115,000 $102,000 $115,000 1 +12.7% -38.5% 738 - SP -Home Croft/W 7Th $181,580 $180,000 $138,750 $114,058 $137,500 +20.6% 24.3% 740 - SP- Crocus Hill $274,900 $260,450 $227,128 $206,250 $219,500 1 +6.4% -20.2% 741 - SP- Downtown Stp/Capital Hg $200,170 $189,500 $199,900 $177,900 $162,000 - 8.9% -19.1% 742 - SP- Central $152,750 $131,750 $60,250 $55,000 $65,000 1 +182% -57.4% 744 - SP -Como $216,250 $216,000 $195,500 $175,000 $175,000 1 0.0% -19.1% 746 - SP-St. Anthony/Midway $207,000 $195,400 $175,000 $159,000 $147,200 -7.4% -28.9% 748 - SP -Town and Country/Merriam Park $282,500 $265,950 $230,588 $220,000 $207,500 1 -5.7% -26.5% 750 - SP- Mac /Groveland/River Road $278,000 $276,000 $266,250 $243,000 $251,000 +3.3% -9.7% 752 - SP- Highland Area $274,400 $280,000 $249,000 $222,025 $234,750 1 +5.7% -14.4% 754 - Big Lake Township $207,850 $195,950 $150,000 $139,900 $143,000 +2.2% -31.2% 756 - Elk River $229,900 $210,000 $187,900 $159,000 $159,950 1 +0.6% -30.4% 758 - Northwestern Anoka County $232,000 $220,480 $195,000 $159,000 $166,500 1 +4.7% -28.2% 760 - Ramsey $229,900 $214,750 $186,700 $153,500 $158,000 +2.9% -31.3% 762 - Andover $273,500 $265,000 $226,840 $205,000 $204,000 1 -0.5% -25.4% 764 - Blaine $229,000 $222,350 $194,750 $169,900 $170,000 +0.1% - 25.8% 765 - Arden Hills/Shoreview $242,250 $237,000 $225,000 $209,900 $213,000 1 +11.5% -12.1% 766 - Moundsview/New Brighton/St.Anthony $225,900 $227,000 $201,000 $186,000 $178,000 1 -4.3% -21.2% 767 -Coon Rapids $205,900 $190,500 $160,000 $137,250 $133,500 1 -2.7% -35.2% 768 - Fridley $210,000 $194,000 $160,025 $139,500 $136,545 1 -2.1% - 35.0% 769- Anoka $200,541 $189,500 $160,250 $130,000 $136,156 +4.7% -32.1% 770 - Hilltop /Columbia Heights $189,900 $179,900 $145,000 $122,500 $120,000 I -2.0% -36.8% 771 - Spring Lake Park $199,850 $195,000 $159,265 $139,000 $132,025 -5.0% -33.9% 772 - Lexington/Circle Pines $191,600 $186,000 $172,600 $150,000 $133,500 1 -11.0% -30.3% 780 - Sherburne County $225,000 $207,500 $165,500 $143,000 $151,250 1 +5.8% -32.8% 805 - Western Wisconsin . - - - - - - - - - - - - - - - - - - $202,816 - - - - - - - - $195,000 - - - - - $175,000 - - - - - - - - - $163,000 - - - - - - - $161,922 - - - - - - - -1- -0.7% - - - - - -20.2% - - - - - - - - - Sponsored by Royal Credit Union I www.rcu.org 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 16 2010 Annual Report on the Twin Cities Housing Market Price Changes Since 2004 Includes single - family detached homes, condominiums, townhomes and twin homes. LEGEND - -11.9% and above -20.9% to -12.0% -29 90A to -21.0% -30 0% and below RMLS Boundary 368 MLS 0lstnct 782 MINNEAPOLIS AREA Association Df REALTORS' 784 L AJTW 21S ELI�NNE 5r bH ( A Mn O.b,C _ TM _ dN1r �/� M �;- Tw ,., LF+K 711 M 780 T+ M T,N tl ft SHMER !W ST FR/�NC�S B[TNEL STAC'I V. 11pO •"M "'^S CNI►40D F,NIIarIY BECFLR 758 EAST BETHEL L.,waeu Tr: pry M 756 a T_ Ba 754 B 713 ONMG GIN.S. Sww GwE ELK RNER lrq •LAS OBCEOIA TOF 710 709 vKJNTK:ELIA ' ?,t,,,� DTSEGO FOREST 762 707 T" FN„N�NA 341 760 D�LA d AKE mlar TYIf ANDOVER HAN LAKE n YBERiVU.E T"N 769 �• •,dKA NA SLAINf 367 DAYTON 767 366 764 FE NTERVKLE 705 _ 40 3 HANG GHAMFRIN RAPiDB OIRCIK LINO LAKES HULA SPRING AlIES BROOKLYN U'KE IEAINGTGN TTI SDEIERBET PARK PARK 364 \771,"'w` • 766 h., 805 Y, 7. ROOKIORD 706 708 rEwEREr - -�' ueewlEED RIOLEY NCw _ 36 363 BR GHTON 5 A,ryA NKINTR003 LDRETTO T� .,�jTERN ` 7JO 766 • 41— Wua[ M 301 1 "'°' °! NEaNA B2 S60 8T 702 CAINDA YOW,M FN,iM, f PfNDEMCL ROE'RIHS'ALE ANTHONY ROSE- E 712 � })( I�i Hubon M M YAPIE 306 JOi HENI�TS MAP.l WOOD OAJLLIALE 725 T.f nARI VA! U 310 T44 742 714 ELLWO 381 '• �* rALY}JITA 744 $AtNT PAIn 716 LANDFALL � �.: -N MFLTERTCMM MMNlT RISTA wAXA 3D0 03 No NI•,er,n uamo ",u' ""�^' cccr. 126 M 380 )SS A T.� aas.•oonM 7f7 ST KW FACRIe SNORErgOD ewT9 NTON N Tq SAM Tel yArER Hf x M SARET 721 NEW GERMANY _ 3 B T ffylL TNR R .` � ^ 380 379 �G; 722 n.: NMLONM BLOOMMOTON EAGAN 608 '""OI., COTfAOE Cygn 394 610 �OV oRa c EK TS YP1•�IDD fOIOGNF Hn»n 640 SURNMU.E 617 PRE&;OTT wEROl1 ON. T•y `+���! 614 616 GUEVER a Fae 612 (.N• G ^.. A T.i� La,N,M APRE ROSEN .T N,T 9„ HAGT� T.'0 M Twp WHEY HM " caElce 618 FMrae. B"'" 626 EM vERNBLL "ice T'y IAKMILE 624 VMIIrm 1M� 846 FAFUND TON Ty s T_ BELLE W. NAEp10N TREER MRaVKI! MME �•• _ M BY & }wy M Ly:A tNp MARKET ELKO E�bTW MRS wT� MAR 628 A 650 "" 648 630 - 660 fN1AGlE RANOQHH Tw FAL4 LAAF.B,q r".,Ir,a pNM,w Wwa.a ST-P M 1 M T°s •� M M M Tcz y:Fjlvq HEIDELBERO �� Gs%9 M M L-$O.E 632 • -LE SUEUR 658 N Vv— J NoR6q j T.p } NooT(,,*L0 Sponsored by Royal Credit Union I www.rcu.org A41// 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 17 2010 Annual Report on the Twin Cities Housing Market Historical Review 1 Number of Total Dollar Number of Average Year Listings Volume Units Sold Sales Price 47,836 Processed (in billions) 1999 - - - - -- - 1980 - - - - - - - - - 37,018 - - - - - - - - - - $1.34 - -- - - - - -- - 18,351 - - - - - - $74,069 1. 1 1 1981 35,580 $1.25 15,675 $80,238 1 I 1 1 1982 41,465 $1.00 12,193 $82,288 1 1 1 1963 50,794 $1.35 15,914 1 $84,953 1 1 1984 53,646 $1.55 18,231 1 $85,007 1 1 1 1985 51,492 $1.87 21,335 I $87,789 1 I 1 1986 58,382 $2.52 28,015 $90,319 1 1 1 1 1987 55,422 $2.46 25,772 $95,914 I I 1 1 1988 80,771 $3.21 34,244 $93,977 I 1989 89,170 $3.28 33,962 1 $96,658 1 1 1 1990 78,548 $3.37 34,496 $98,016 1 I 1 1 1991 71,850 $3.52 35,598 $99,402 1 I 1 1992 72,730 $4.31 41,944 $103,264 1 1 $9.01 45,185 I $199,404 1 I 1 1993 70,685 $4.30 39,842 $107,569 1 1 1 1994 63,369 $4.73 42,454 $111,806 1 1 1 1 1995 64,556 $4.94 42,310 $117,053 1 1 1 1 1996 73,433 $5.82 46,949 $124,022 I 1 1997 63,189 $5.68 41,441 $137,085 I 1 1 1998 64,280 $7.09 47,836 $147,346 1 I 1 1 1999 57,573 $7.62 46,675 $163,277 1 I I 2000 59,618 $8.76 48,208 $181,605 1 1 1 2001 71,861 $10.22 50,298 $203,136 1 1 1 1 2002 73,940 $11.33 51,212 $221,275 1 I 1 1 2003 86,378 $13.48 56,528 $238,446 1 1 2004 97,737 $14.92 58,233 1 $256,252 1 1 I 1 2005 99,211 $15.61 57,283 $272,522 1 1 1 2006 108,022 $13.34 47,906 $278,462 1 1 1 I 2007 105,044 $11.01 40,055 $274,767 1 1 1 2008 93,560 $9.18 38,730 1 $236,953 1 1 2009 83,299 $9.01 45,185 I $199,404 1 I 1 I- 2010 - - .. - - 82,127 - - - - - - - - - - $7.94 - - - - - - - - 37,598 - - - - - - - - - $211,186 1 - - - - - - - - - - MINNEAPOLIS AREA Association ar REALTORS' 1980 -1996 All property types and all MLS districts. 1997 - Present Single- family detached homes, condominiums, townhomes and twin homes for the 13- county metro area. Home sales for 2002 were recalculated by RMLS in March 2003 since a previous report included some sales reported early in 2003. Need More Data? Check out www.mpisrealtor.com to access up -to -date market reports throughout the ear. You can also create your own custom reports - , on- the -fly with The Thing, our new interactive market -- - -- -- -- -- _ -- analytics tool. Just a few simple clicks will break out any area you need by any variable you need. Access it now at http : / /thething.mpisrealtor.com. - - sponsored by Royal Credit Union I www.rcu.org d 02011. All data from Northstar RMLS. Provided by the Minneapolis Area Association of REALTORS& Powered by 1 OK Research and Marketing. I Click for Table of Contents 1 18 MINNESOTA- REVENUE " MINNESOTA ASSOCIATION OF ASSESSING OFFICERS AND MINNESOTA DEPARTMENT OF REVENUE Joint Advisory: The current residential real estate foreclosure situation and how it relates to sales verification, sales ratio studies, and the assessment process. Overview of the Real Estate Foreclosure Process Foreclosure is a legal process that allows a lender /bank to take possession of and sell a property due to non - payment of a loan that is secured by that property. After the completion of the foreclosure process the lender /bank has title to the property. The real estate foreclosure process begins when a borrower /owner defaults on loan payments, in this case, mortgage payments and the lender files a Notice of Default, which in Minnesota would be referred to as Lis Pendens. Lis Pendens is a publicly recorded notice of a pending lawsuit against a property owner that may affect the ownership of a property. The Foreclosure Sale, or Sheriff's Sale, as it is called in Minnesota is the event where the property is sold to the highest bidder. The notice of the pending Sheriff's Sale is published for 6 weeks prior to the sale and the sheriff or designee will serve notice to the occupant one month prior to the sale. Typically, at the Sheriff's Sale the lender /bank will open bidding with the exact amount due at the time of sale. Following this opening bid, other bidders are given an opportunity to bid at higher amounts. The successful bidder will receive a Sheriff's Certificate of Sale. A CRV is not typically filed and the assessor is not typically notified of this transaction. The time period from the Lis Pendens filing until the Sheriff's Sale is approximately four months. After the Sheriff's Sale the borrower has the right to redeem the property by paying the successful bidder at the sheriff's sale the amount of the successful final bid plus interest and applicable fees. This is referred to as the redemption period. For most properties this is 6 months in length. Under certain circumstances the redemption period may be shorter, and for agricultural property the redemption period may be up to 12 months. If a property is abandoned, the redemption period may be shortened to five weeks with a special court hearing. During the redemption period, the original owner of the property may continue living in the property and the successful bidder at the Sheriff's Sale may not enter the property without permission of the original owner. If, after six months, the property is not redeemed, the highest bidder at the Sheriff's Sale is the undisputed owner of the property. For Torrens property, there is a special hearing called a Proceeding Subsequent that must be held before the name of the new owner may be added to the Certificate of Title. 76 biQ 9 MINNESOTA- REVENUE A Overview of the Sales Verification Process The annual sales ratio analysis is guided by the Sales Ratio Guidelines published by the Minnesota Department of Revenue (DOR) utilizing the International Association of Assessing Officers (IAAO) Sales Ratio Standard which was updated in 2007 for its guiding principles. This study is based on the analysis of sales that have been carefully screened and reviewed to ensure that they accurately represent true market activity. The purpose of sales verification is to determine if a sale meets the definition of an open market and arm's - length transaction and should be included in the annual Minnesota Department of Revenue sales ratio study. If the sale does not meet those definitions, the sale should be excluded from the Department's sales ratio analysis. This is true for any property type, whether the verification is done via clerical screening or through an individual or manual verification process. The IAAO Standard on Ratio Studies (2007) in section A.4 on page 48, Screening Sales states that an objective of sales screening is "to ensure that sales are excluded from the ratio study only with good cause (e.g., when they compromise the validity of the study) ". Sales of commercial, industrial, and apartment properties are normally verified through an individual process that would include contacting the parties involved in the transaction, typically the buyer, and asking a set series of questions to determine if the sale meets the definition of an open market, arm's - length transaction. Residential and seasonal residential recreational property sales, on the other hand, are normally verified though a process of clerical screening and computer edits. Clerical screening is the verification of sales on a mass basis, with limited staff time. Clerical screening involves reviewing the Certificates of Real Estate Value (CRVs) and noting the names of buyers, sellers and whether any of the boxes in the area #6 which identifies the type of acquisition are checked. The names are checked to determine if the parties involved in the sale are individuals, a bank /financial institution, or other entities, such as corporations. Whether the sale is manually verified or clerically screened, all sales that are open market, arm's - length transactions should be accepted for the ratio study. An "open market sale is one in which both the buyer and seller are acting prudently, and the price is not affected by undue stimulus. Neither the buyer nor the seller must be under great pressure to complete a transaction in a short time. An "arms- length sale" is between two parties, both of whom are seeking to maximize their gain from the transfer. Properties that sell /transfer during the foreclosure process usually do not meet the definitions of open market, arm's - length transactions. The IAAO Standards on Ratio Studies (2007), A.4.1 on page 49 identifies the types of sales generally invalid for Ratio Studies. Two of the types of transactions identified are typically related to foreclosures. #3 - Sales involving financial institutions. A sale in which the lien holder is the buyer can be in lieu of a foreclosure or a judgment and the sale price can equal the loan balance only. 77 MINNESOTA• REVENUE • #6 - Forced Sales. Such sales include those resulting from a judicial order. The seller in such cases is usually a sheriff, receiver, or other court officer. Those sales /transfers during the foreclosure process that do not meet the definition of open market, arm's - length transactions, need to be rejected from the DOR ratio analysis via the following rejection criteria: RC 15 a. Sales to avoid foreclosure b. Sales involving legal actions such as foreclosures, divorces, bankruptcies. [Type of Transaction - Area #6 on the CRV - The box "Property condemned or foreclosed upon" must be checked.] RC 21 Bank Sales (including HUD) and lending institution sales not exposed to the market. If the lending institution is only trying to recover their investment in the property, the sale should be rejected. Resales of repossessed property may be considered for use in the study. Thorough verification is essential before using these sales. They should be used if the sale meets the "open market arms - length test. Resales of repossessed property by lending institutions will not be adjusted for financing terms. RC 26 Sales of doubtful title or other non - arm's - length transactions that are atypical transactions. For example, sales that are not advertised, listed, or promoted to potential buyers. Please review the DOR's "Reject Code 26 - 3 Factor Test" for verification of sales in this category. In some instances, foreclosure -type transactions become so prevalent in the market that these types of transactions actually become the market. In these cases, sales that reflect the typical market could be included in the sale ratio analysis. If these sales become the actual market, some consideration must be given to including them into the sales study to measure how well the assessor's values reflect the actual market. The only way to be certain whether to include these transactions is to do a more detailed individual verification. If these types of foreclosure - related transactions are to be considered for inclusion in the ratio study the physical condition of the property on the sale date as compared to the condition on the assessment date must be established. The IAAO Standard on Ratio Studies (2007) states in section 3.5 on page 24, ` physical characteristics of the property on the date of assessment must be the same as those on the date of sale. Properties with significant differences in these factors should be excluded from the ratio study. This factor in sale verification is critical in foreclosure -type transactions because of the varying in physical sical conditions of the structures at the time of sale. If P evidence suggests that some of these sales should be included in the sales study, the analysis must be done in cooperation with, and approved by, the Department of Revenue Regional Representative. 78 MINNESOTA- REVENUE . -flYTR ITfSE1f.F vRM_ Types of Sales during the Foreclosure Process Properties that sell /transfer during the foreclosure process fall into one of three categories based on the time period when they sold. The categories are Pre - Foreclosure, at the Foreclosure or Sheriff's Sale, and Post - Foreclosure. 1. Pre - Foreclosure Normal Third -Party Sales These are very common sales where the loan(s) against the property are in some stage of default and the amount owed is less than the value of the property. These sales typically, but not necessarily, occur before the Sheriff's Sale. The parties are selling to avoid a formal foreclosure process and losing equity. These types of sales happen often and typically have been listed for sale and meet the definition of open market and arm's - length transactions. Verification via clerical screening of these sales would not indicate anything out of the norm and the sale would go through the process unnoticed. Therefore, these sales should be included in the sales ratio analysis provided that no conditions of undue duress are evident. Good for study: Yes Acceptance Code 00 Good for study: No, if evidence of undue duress or lack of market exposure with proper verification and regional representative approval. Rejection Code: RC 26 Not typical of market. (DOR's "Reject 26 -3 Factor Test ") Short Sales A short sale, sometimes referred to as a discounted payoff, is the sale of real estate where the total purchase price is less than the total amount owed against the real estate. The lender /bank is thus accepting less than the total amount owed by the borrower. Please note that the IRS could consider the debt forgiveness as income and the bank/lender may pursue a deficiency judgment for any loss between the. net sale price and the total amount owed. The property is at some stage of the default process, possibly, but not necessarily, before the Sheriff's Sale. The total purchase price is less than the mortgage amount, not necessarily less than the value that would likely be obtained in an open market, arm's - length transaction. In a pre - foreclosure scenario, the parties are selling to avoid a formal foreclosure process. In the case of a post - foreclosure short sale the seller is selling to reduce the potential loss. The clerical screening of this type of sale probably would not result in anything out of the norm, as the seller named is the seller and the buyer named is the buyer and there is no indication of bank /lending institution involvement. Further individual verification using Multiple Listing Service (MLS) data could be the flag for potential issues as the listing usually includes a comment, such as, sale needs third party approval, or upon approval from lender, indicating that a bank /lending institution is also involved. 79 IM MINNESOTA- REVENUE Even with this knowledge, the sale verifier should do a sales comparison market grid to compare the sales price to other open market arm's - length transactions to see if the sales price falls in the value range. Good for study: Yes, if deemed open market, arm's - length with proper verification and regional representative approval. Acceptance Code: 00 Good for study: No, if not in value range, condition changes, etc. Rejection Code: RC 15(a) - Sales to avoid foreclosure Deed in Lieu of Foreclosure Sometimes referred to as a "soft sale," this transaction occurs when the mortgagee and the mortgagor have agreed that "in lieu" of being foreclosed upon; the seller gives the deed to the lender. The property is typically transferred via warranty deed and the total purchase price is the amount of the loan in default, plus associated fees. The property then becomes the lender's property, without the lender having to incur the costs and time associated with going through the foreclosure process. Good for study: No Rejection code: RC 15 (a) - Sales to avoid foreclosure 2. Foreclosure Sale or Sheriff's Sale This is an auction, where the sheriff is selling the property to the highest bidder. In most cases the highest bidder is the bank /lender and the bid amount is the sum of the defaulted loan, plus interest and associated fees. The successful bidder will receive a Sheriff's Certificate of Sale, but typically no CRV is filed. Good for study: No Rejection code: RC 15(b) - Sales involving legal actions such as foreclosure, divorce, bankruptcy 3. Post - Foreclosure The redemption period on most properties is 6 months. It is very rare for a property which is post - foreclosure to sell and close before the end of the redemption period. An exception would be a lender (successful bidder) - approved short sale. 1130 0 Bank Sales MINNESOTA• REVENUE A bank or other financial institution is listed as the seller. In these cases, the property is considered to be real estate owned (REO) by a bank and the bank acquired the property through foreclosure. The bank may sell these properties on an individual basis or as part of a group at auction (see below). Clerical screening would indicate that the seller is a bank or financial institution. Good for study Rejection code: No RC 21 - Bank sale Auction Sales (Not to be confused with the Sheriff's Sale) This section specifically refers to those auctions where a bank or lending institution is selling off multiple properties. These are a subset of the bank sales above. These auctions may have from one to dozens of properties available. The terms could be an absolute auction or a reserved bid. Typically, these sales are not considered to be an accurate reflection of market value. However, it is possible that when many properties in a sub - market or neighborhood are auctioned that auction sales then become the market. This has happened with condominiums. The IAAO Standard on Ratio Studies (2007) A.4.2.5 Sales with Special Conditions on page 50 states that: Auctions. In general, auction sales of real estate tend to be at the lower end of the price spectrum. Auction sales that have been well- advertised and well- attended may be valid for consideration in ratio studies. The seller also must have the option to set a minimum bid on the property or the right of refusal on all bids (with reserve in order for the sale to be considered valid)." Minnesota Statutes, section 272.03, subdivision 8 states in part that: "`Market Value' means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or auction sale; if it is determined by the assessor that the price from the auction sale represents an arm's length transaction. The price obtained at a forced sale shall not be considered." A distinction also needs to be made between typical farm or estate auction sales and bank auction sales. Farm and estate auction sales tend to be advertised and knowledgeable buyers and sellers and possibly realtors are involved in the transaction. Quite often, farm auction sales will be considered good for the study while estate auction sales are less likely to qualify as a good sale. 81 LVIQ � MINNESOTA- REVENUE Bank auction sales tend to be similar to any other bank sale where the bank wants to "get the property off its books" and will consider all offers whether they reflect market value or not. Any auction sales that may be considered valid for the current sales MUST be verified by the appraiser to determine if the sale meets the criteria of an arm's - length transaction. In many instances, auction sales will not meet the arm's - length criteria since the seller may be forced to sell the property to close an estate, or in the case of bank property, close out the loan transaction. In many instances, the exposure time is very limited and the sale price does not reflect typical market value. As a general rule, all auction sales should be verified to determine whether the sale is an "arm's- length transaction" and that the sale price is indicative /typical for that area. For all auction sales, a verification form should be attached to explain how and why the determination was made that the auction sale was considered by the county as a good sale or why the sale should be rejected from the study. The regional representative will review the auction sale verification form /document and will make the final determination regarding each auction sale. Good for Study: No Rejection code: RC - 21 Bank sales Fraudulent Sales Prior to Foreclosure Fraudulent sales should be excluded from the ratio study analysis as non- arm's- length transactions. Properties that have sold in a study period and have entered the foreclosure process may still be in the ratio study unless the original sale is suspected to be fraudulent. This original sale should, if the timing will allow, be excluded from ratio analysis by rejection code 26, not typical of the market. In order to reject any sales suspected of being mortgage fraud, the appraiser verifying the sale must attach additional verification documentation to the CRV. The attachment may include a copy of the Realtor's MLS showing the original list price and the final sale price where the final sale price is considerably higher than the original list price, and /or a list of three or more comparable sales that indicate what the typical market value is for the sale property compared to the actual sale price of the property. The Revenue Regional Representatives may reserve the right to ask for additional documentation before the sale will be rejected, and the Regional Representative will make the final determination as to which sales are rejected from the study and which sales will be included in the study. 82 r • CONCLUSION MINNESOTA- REVENUE ■ In conclusion, it should be clear that assessors should consider all transactions and sales data that can assist them in determining current market conditions and trends. It is inherently the obligation of the assessor to determine and measure the extent to which foreclosure sales impact the overall market in their jurisdiction. It is essential that assessors work with the Department of Revenue through their regional representatives to ensure that the analysis of sales data is accurate and consistent with the published guidelines. These procedures will maintain the integrity of the sales ratio process and ensure proper assessment uniformity statewide. Resources: Minnesota Department of Revenue Sales Ratio Study Criteria: http: / /www.taxes.state. mn.us %taxes /property_ tax_ administrators /other_Supporting_ content /srstudy2008_criteriamain.shtmI Questions regarding the criteria should be directed to: Leonard Peterson at 651 - 556 -6110 or leona rd. peterson @state. m n. us; Tom Clark at 651 - 556 -6101 or tom.clark @state.mn.us; Contact your regional representative for clarification. IAAO 2007 Standard on Sales Ratio Studies http: / /www.iaao.org /documents /index.cfm ?Category=23 Toll Free Number: 800/616 -IAAO (4226) Main Telephone: 816/701 -8100 Facsimile: 816/701 -8149 83 HENNEPIN COUNTY FORECLOSURES 2007 through 2010 City Total 2007 Tota12008 Total 2009 Total 2010 Bloomington 1918, 274 234 279 Brooklyn Park 614 1,005 720 723 Eden Prairie 162 186 145 132 Edina 72 75 90 104 Hopkins 66 90 76 89 Maple Grove 176 281 224 349 Minnetonka 88 175 126 161 Plymouth 124 165 159 210 Richfield 115 230 150 110 St. Louis Park 90 143 92 201 Out of the 104 properties in 2010 for the City of Edina: • 65% are single - family, double or zero lot -line 67% are homestead 33% are condominiums (includes five townhouses) 0 2.are commercial properties 84 Format Dynamics :: C1eanPrint :: http:/ /www.twincities.conVci_17085944 TwinCitiesocom Home prices up; By Gita Sitaramiah gsitaramiah @pioneerpress.com Updated: 01/13/2011 11:45:10 PM CST The housing bust in the Twin Cities now has a silver lining: After steep price declines the past few years, the Twin Cities median home price inched up 2.3 percent in 2010 over the previous year. Still, demand is weak, as sales last year slumped to their lowest level in eight years. Among the contributing factors: Some buyers are running into trouble closing deals because of appraisals coming in lower than offers. Area Realtor groups reported Thursday that the midpoint sale price of a home in the 13- county metro area rose to $169,900 in 2010. For the year ahead, local Realtors associations see the median sale price again increasing to $175,000, a 3 percent rise. "The big difference now is things are starting to stabilize," said Pat Paulson of the Minneapolis Area Association of Realtors. Reasons behind the price upswing last year included more upper- bracket homes sold and strong demand early in the year because of the federal tax credit for homebuyers, which had an April 30 purchase agreement deadline. The year - over -year price gains in the first seven months were followed by declines in four of the last five months of 2010. Page 1 of 2 Another key measure of housing prices shows soft price dynamics in the Twin Cities. The most recent Standard & Poor's /Case - Shiller index, which measures repeat sales of the.same houses in 20 metropolitan areas, showed a 2.8 percent year - over -year decline in home prices here in October compared with a 0.8 percent dip for the national index average. Case - Shiller predicts home prices will continue to drop this year. George Karvel, a professor of real estate at the University of St. Thomas, isn't ready to call the year's price increase posted by local Realtors a sign of turnaround until inventory levels and foreclosures drop significantly. "It would certainly be safe to say that in our market, housing prices have appeared to stabilize," he said. The number of homes on the market was flat in 2010 compared with 2009. Sales dropped 16.8 percent from last year, to 37,608. Realtors predict sales this year will increase to 40,000, but listings are expected to rise as well. Foreclosures peaked in 2009, when more than 43 percent or about two of five home sales were what is known as "lender mediated." The foreclosure rate in 2010 improved slightly, dipping to 40 percent. Realtors on Thursday said they expect metro foreclosures to drop below the 40 percent distressed sales rate in 2011. Sales of existing homes nationwide rose 5.6 percent in November from the year -ago period, according to the most recent data from the National Association of Realtors. Real- estate observers have noted Twin Cities buyers appear more cautious despite a higher jobless rate nationally than in Minnesota. Some attribute this to a more conservative approach here or suspect that many prospective local buyers are Send Ilorirers I'or any occasion qtpets 9 . ,t 13roFlowem proflo, 85 sl 1� a- Nems-cominagy or call 1- 877 -888 -0 88 Print Powered By P� I FormatDynamics' http: / /www.twincities.com/fdcp? 1295013554673 1/14/2011 Format Dynamics :: C1eanPrint :: http:/ /www.twincities.com/ci_17085944 Twi nCities o corin- timing the market, hoping for even better deals in spring. By contrast, selling was no trouble for Jeff Johnson, who put his Cathedral Hill condo on the market for $215,000 around Thanksgiving and expected to wait six months for an offer. He accepted an offer just three weeks later and closes next month on an offer of $201,000. Buying is another story. Johnson found a three - bedroom, three -bath house he loves on St. Paul's Linwood Avenue. It had been on the market nearly a year, and getting his $415,000 offer accepted by the seller was the easy part. Getting a loan is proving to be work. "The house is actually appraising for significantly less than I'm offering," Johnson said. He's asking for another appraisal but may have to walk away. "I'm in the best position I could possibly be in, but it's not my ideal," he said. After trying to sell his house near the state Capitol for more than a year, David Schmit took the home off the market. He said his home's modular style and location went against it, but he wasn't desperate to sell. He wound up getting lucky when he got an offer two months later for close to his $215,000 asking price. What he believed he did right was to price the home at the lower end of what his Realtor suggested, and he advises other sellers to do the same. "In this market, you can't be as greedy," he said. "You have to take what you can get and walk away from it." Gita Sitaramiah can be reached at 651 - 228 -5472. Page 2 of 2 Send (lowers for any occasion B u(pets ID . ' .Al 19 +S/h 0 Jf Order ONLY at profo: e rscom/hap y ProN lowes or call 1- 877 - 888 -088 Print Powered By [T� ForinatDynannics- 86 http: / /www.twincities.com/fdcp ?1295013554673 1/14/2011 Minnesota home sales rise, bucking nationwide trend By JIM BUCHTA, Star Tribune Last update: March 22, 2011 - 9:59 AM While home sales across the country continue to fall, the housing market in Minnesota is showing some signs of momentum. Or at least stability. In Minnesota, there were 7,284 home sales during January and February, a 5.7 percent increase over the same period last year, according to the Minnesota Association of Realtors. Nationwide, the results were less promising. During the first two months of the year, home sales have remained relatively flat compared to 2010. However, on a seasonally adjusted basis, February sales took a turn for the worse, falling 9.6 percent, the National Association of Realtors reported Monday. "Home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers," said Lawrence Yun, chief economist for the national Realtors group. "This tug and pull is causing a gradual but uneven recovery." The latest data shows just how volatile the housing market is, both locally and nationally, as the economy struggles to regain its footing and the mortgage industry faces an overhaul. Economists had expected sales to fall only about 4 percent, causing some to wonder if the worse -than- expected sales last month mean that a U.S. recovery is still far away. Clearly, the biggest obstacle standing in the way of anything that looks like a recovery is the foreclosure crisis, which dominates the market in every comer of the nation and continues to put downward pressure on home prices. Across the country, prices fell to the lowest level in nearly nine years. Even in Minnesota, where sales have picked up in recent months, sale prices continue to fall. During February the median sale price of all closed sales fell 8 percent to $129,900, luring bargain shoppers into the market. "Home buyers in Minnesota have recognized that there are outstanding values in the marketplace," said Chris Galler, chief operating officer of the Minnesota Association of Realtors. While statewide sales figures showed gains, that's not true everywhere in the state. The Realtors association divides the state into 13 regions that correspond to the economic development regions established by the Minnesota Department of Employment and Economic Development. 87 During January and February four of those regions showed steep declines in sales and only five showed an increase in the median sale price. The regions that did well have strong regional economies tied to a growth industry. Farmers, for example, are doing particularly well right now because of strong demand for c6m and wheat. So in the northwest region, which includes the fertile Red River Valley, sales rose 27 percent. The south central region, which includes Mankato, saw similar gains. Not true for areas that rely on manufacturing, which was. clobbered by the recession. In the Arrowhead region, which includes Duluth, sales were down 10.9 percent. Agents in that part of the state have been anxiously awaiting the reopening of two iron mines. "That area hasn't had a lot of changes or new people moving in," Galler said. "It's hard for prices to increase; demand is still the key." The same factors apply in the Headwaters region, where sales fell 35 percent and prices were down 34 percent. Data for the report is provided by agents who are members of the Regional Multiple Listing Service. In some communities, especially small, rural towns, agents don't subscribe to the service. Galler said that the report still captures the bulk of transactions in the state. In just the seven - county metro area, where the vast majority of transactions are included in the report, the number of closed sales during January and February rose 3.9 percent. Though January and February are typically the slowest months of the year, analysts pay close attention to sales activity during these months because they are on the cusp of the spring buying season, which typically starts in late February and early March. Agents say that this year harsh weather kept many buyers inside. That's evident judging by data released earlier this month by the Minneapolis Area Association of Realtors, which said that in the 13- county metro area, pending sales -- an indication of future closed sales -- had fallen more than expected compared with last year at this time. And according to a weekly report released Monday by the Minneapolis association, pending sales in the 13 county metro area were down 21 percent. Brad Fisher, a sales manager for Edina Realty and the president of the Minneapolis Area Association of Realtors, said local buyers and sellers need to brace themselves for declines in sales at least through early spring. Sales through the first half of 2010 was buoyed by the federal home -buyer tax credit, which expired last April. "We pulled that spring business from the second quarter into the first quarter," Fisher said. Jim Buchta o 612 - 673 -7376 88 Finance & Commerce > Print > The slow comeback: slightly less depressing days are her... Page 1 of 2 Finance & Commerce http:/ /finance- commerce.com The slow comeback: slightly less depressing days are here again by Burl Gilyard Published: March 21st, 2011 Burl Gilyard The commercial real estate market is coming off its worst climate in at least two decades. The last two years have been tough ones for the business. But today there's clearly a general feeling of optimism. There's a sense that the market is turning the corner, albeit slowly. Yet the psychological state of the market is tough to gauge. It's not an exact science. There are no studies to definitively track the optimism or pessimism of landlords, investors, brokers and tenants. Optimism does not sign any leases or pay any rent. According to Bloomington -based NorthMarq, the local office and retail markets posted gains in the second half of 2010. Vacancy still remains high, but some vacant space is beginning to be absorbed. NorthMarq reported 202,000 square feet of positive absorption for the office market in the last six months of 2010 and positive absorption of 374,000 square feet in the retail market. Absorption measures the change in occupied space between reporting periods. NorthMarq's biannual "Compass" market report surveys the state of the Twin Cities commercial real estate market. NorthMarq reported the office vacancy rate at 19.9 percent - still very high by historical standards - and a retail vacancy rate of 9.8 percent. Some notable lease deals have been signed recently, particularly in downtown Minneapolis. The Minneapolis -based law firm Oppenheimer Wolff & Donnelly signed a deal for about 100,000 square feet at the Campbell Mithun Tower. Meanwhile, the AT &T Tower landed deals with Syncada LLC and Nuveen Investments. Combined, the two deals totaled 102,000 square feet for the AT &T Tower. But some observers are concerned that these deals amount to little more than musical chairs in the market, with tenants moving from one building to another without adding any new space. True market absorption of new space is driven by companies adding jobs and expanding their business. But in another encouraging sign, investment sales also picked up in the second half of 2010, signaling a return of investor confidence. In the largest local deal, Houston -based Hines Global REIT Inc. paid $180 million for the 50 South Sixth office tower in downtown Minneapolis in November. In other notable deals, the Meridian Crossings office complex in Richfield sold for $65.6 million last year, and the 601 Tower at Carlson Center sold for $54.4 million in February. In both cases, the buyers were real estate investment trusts (REITs). Investment sales also have been strong in the multifamily sector, with a number of large local apartment sales. According to NorthMarq, the local industrial market is still struggling a bit. NorthMarq reported 216,000 square feet of negative absorption in the industrial market, pushing the vacancy rate up to 17.2 percent. But developers are weighing new industrial projects in Rogers, Brooklyn Center and St. Paul. In the big picture, there's a genuine feeling that things are looking up in 2011. But no one is doing cartwheels just yet. Companies remain slow to expand and the market remains challenging. E� http:/ /finance- commerce. com /wp- content/plugins /dmc_ sociable toolbar /wp- print.php ?p =27... 4/4/2011 Finance & Commerce > Print > The slow comeback: slightly less depressing days are her... Page 2 of 2 Looking ahead, the NorthMarq report offers what could be called.wary optimism for the year ahead: "Overall recovery is on the way, but it will be a longer - and bumpier - ride than those of recent times, perhaps even more challenging than that of the early 1990s." But. after the last few years, even that sounds encouraging. Vacancy rates: By the numbers 19.9% Office 17.2% Industrial 9.8% Retail source: NorthMarq's biannual Compass market report Complete URL: http://flnance- commerce.com/ 2011/03/ the -slow- comeback - slightly -less- depressing- days -are- here- again/ % httn- // finance - commerce .com /wn- content/plugins /dmc . sociable _toolbar /wp- print.php ?p =27... 4/4/2011 DATE: July 22, 2005 r_ TO: Assessing Staff FROM: Bob Wilson, City Assessor MEMO SUBJECT: Office Policy for Valuation Appeals The following policy will be followed in dealing with property owners who wish to appeal their market value. From the time the valuation notices are mailed out, until the deadline for local board applications, appraisers may review and adjust market valuations when there is evidence that a property has been overvalued. Commercial, industrial, and apartment owners have the right to appeal to the Local Board. However, ,our office encourages these property owners to pursue an informal review process with the option to file a tax court petition, if a mutual agreement is not reached on the property valuation. For property owners who wish to appeal to the Local Board, the application must be received by the end of the business day stated in the valuation notice. If an application is received after the deadline, or if they are a "walk -in" on the day of the board, they will be listed as having-appealed to the,board, but board policy will be to sustain the assessor's value and allow them to present their case to the county board. Once a property owner makes an appeal to the Local Board, only the Local Board may make any changes to the value or class unless a, clerical error exists. If a property owner contacts our office after the Local Board, we will inspect their property and review their current value, if requested. If there is evidence that the property is overvalued, we can make an adjustment through a change authorization. The cut off is the Friday before the County Board of Appeal and Equalization meets, in June. Property owners who contact our office after the local board has convened have missed the opportunity to appeal their valuation to both the Local and County Boards of Appeal and Equalization. However, they have retained their option to appeal to the Minnesota Tax Court. 2010 Local Board of Appeal and Equalization Trained Members for Hennepin County .......... ... 7= ... ......... ...... . ..... . . . ........... .... .......... . . . .. ........... . .......... . ................ ................ d6d.." . ... .. ................. . . .......... . ....... ... 1 Minneapolis 1,patricia Werner 03/25/2009 3/25/2012 Realtor Minneapolis 1,john Cole 03/25/2009 3/25/2012 Appointed Board Member Minneapolis 1:Tad Marinac 11/07/2008 11/7/2012 Appointee Minneapolis 1 Julie Meintsma 03/25/2009 3/25/2012 Board Facilitator Minneapolis 14 Chanhassen: Carver Open Book - Carver County 15 Woodland 15 James S. Doak 03/25/2009 3/25/2012 Mayor Woodland 15 Mark B Evenstad 01/18/2007 1/18/2011 Council Member Woodland 15 Sylvia Carlson 03/25/2009 3/25/2012 Council Member Woodland 15 Troon Dowds 03/25/2009 3/25/2012 Council Member Woodland 15 Tom Newberry 03/25/2009 3/25/2012 Council Member Woodland 17 Spring Park 17 Sarah Reinhardt 03/25/2009 3/25/2012 Mayor Spring Park 17 Gary Hughes 01/18/2007 1/18/2011 Council Member Spring Park 19 Greenwood 19 William Rose 11/24/2008 11/24/2012 Council Member Greenwood 19 Debra Kind 11/24/2008 11/24/2012 mayor Greenwood 19 Thomas Fletcher 11/24/2008 11/24/2012 Council Member Greenwood 20 Bloomington 20 Dale Hildestad 10/29/2008 10/29/2012 Realtor Bloomington Appointed Board 20 Dwight Dahlen 01/18/2007 1/18/2011 Appraiser Bloomington 20 Tom Meyers 03/25/2009 3/25/2012 Member of Board Bloomington 22 Brooklyn Center 22 Tim Willson 03/25/2009 3/25/2012 Mayor Brooklyn Center 22 Mary O'Connor 01/0/2008 1/7/2012 Council Member Brooklyn Center 22 Kay Lasman 03/25/2009 3/25/2012 Council Member Brooklyn Center 22 Dan Ryan 01/18./2007 1/18/2011 Council Member Brooklyn Center 24 Edina 24 Jeffrey Johnson 01/07/2008 1/7/2012 Citizen Board Member Edina Appointed Board 24 N. Craig Johnson 11/17/2009 11/17/2013 Citizen Board Member Edina 24 KW (Tim) Sorteberg 11/17/2009 11/17/2013 Citizen Board Member Edina 26 Shorewood Open Book 28 Golden Valley Open Book 30 Hopkins Open Book 34 Minnetonka 34 Terry Schneider 03/25/2009 3/25/2012 Mayor Minnetonka 34 Tony Wagner 03/25/2009 3/25/2012 Council Member - Minnetonka 36 Minnetrista Open Book 38 Orono 38 Lili McMillan 10/29/2008 10/29/2012 Council Member Orono 38 James Murphy 10/29/2008 10/29/2012 Council Member Orono 38 Doug Franchot 03/25/2009 3/25/2012 Council member Orono 40 Plymouth 40 Ginny Black 01/18/2007 1/18/2011 Council Member Plymouth 40 Jim Willis 03/25/2009 3/25/2012 Council member Plymouth 42 Richfield Book 44 Robbinsdale -pen 44 William A. Blonigan 03/25/2009 3/25/2012 Council member Robbinsdale 44 Dan Rogan 03/25/2009 3/25/2012 Council Member Robbinsdale 44 Tom Mathias 03/25/2009 3/25/2012 Council Member Robbinsdale 46 St. Louis Park 46 Paul Omodt 03/25/2009 3/25/2012 Council Member St. Louis Park 46 Loran Paprocki 03/25/2009 3/25/2012 Council Member St. Louis Park 46 Sue Santa 03/24/2010 3/24/2013 Council Member St. Louis Park 48 Brooklyn Park 48 Rich Gates 03/25/2009 3/25/2012 Council Member Brooklyn Park 48 Dean'e . Heng 03/25/2009 3/25/2012 Council Member Brooklyn Park 50 Champlin 50 mark Uglem 03/25/2009 3/25/2012 Mayor Champlin 50 Gregory A. Payer 01/16/2007 1/16/2011 Council Member Champlin 50 Eric Johnson 03/25/2009 3/25/2012 Council Member Champlin 52 Corcoran 52 Paul Jacobs 01/18/2007 1/18/2011 Council Member Corcoran 52 Christopher Hudek 01/18/2007 1/18/2011 Council Member Corcoran 52 George Gmach 03/25/2009 3/25/2012 Council Member lCorcoran 54 Crystal 54 ReNae Bowman 03/25/2009 3/25/2012 Mayor Crystal ICrystal 1 54 Janet Moore 03/25/2009 3/25/2012 Council Member