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Home My WebLink About2010-04-27_STUDY SESSIONe� � I i c c / epa4/t"4R4/W B oar& of A pp eall /uL�J F 07, "r, F , oe �s cn y v � PO B a 2010 1, I M Table of Contents TABLE OF CONTENTS SECTION 1 BOARD OF APPEAL AND EQUALIZATION - GENERAL 1. Letter of Transmittal ...................................................... ............................... 2. Board of Appeal and Equalization Rules and Procedures ...... ............................... 3. L005I DOdlu iwcc uiiyivuuw .,� .. �.. �......� .... -.. _ ........... ... ... ... .. SECTION 2 ASSESSMENT /APPRAISAL INFORMATION 4. Edina 2010 Assessment Summary .:.............................. ............................... 5. Sample Real Estate Valuation Notice ............................. ............................... 6. Estimating Market Values ............................................... ............................... 7. Historical Changes in Market Value ............................... ............................... 8. Residential Assessment .............................................. ............................... 9. Apartment and Commercial /Industrial Assessment ........... ............................... 10. 2010 Assessment Calendar ........................................ ............................... SECTION 3 PROPERTY TAX INFORMATION 12. Simplified Chart of Property Tax Process ...................... ............................... 13. Property Tax Refunds and Programs ............................ ............................... 14. Market Value Exclusion on Homesteads of Disabled Veterans ............................. 15. Property Taxation 101 ............................................... ............................... 16. Property Tax Statement 101 ......................................... ............................... 19. Market Value Homestead Credit 101 .............................. ............................... SECTION 4 MISCELLANEOUS INFORMATION 18. Sale and Resale Analysis Summary ................:.............. ............................... 19. 2008 Residential Real Estate Activity Report ................... ............................... 20. "Twin Cities Home Prices are Up Again, But Still Below '06" . ............................... 21. "Declining Values for Homes Take Toll on Cities, Too" ....... ............................... 24. Hennepin County Foreclosures 2006 through 2009 ........... ............................... 23. Foreclosures and Short Sales in the Edina Housing Market . ............................... 24. "Foreclosure Rates Up by Smallest Amount in 4 Years" ...... ............................... 24. Overview of the Real Estate Foreclosure Process ............ ............................... 1 2 4 10 16 18 21 25 39 41 42 43 44 45 50 54 56 58 71 73 76 77 79 80 Section 1 City of Edina DATE: April 5, 2010 TO: Edina Board of Appeal and Equalization Members Edina City Council Members FROM: Robert C. Wilson, City Assessor Beginning March 9, 2010 approximately 20,000 valuation notices were mailed to Edina property owners. Since this time, the assessing department has responded to over 400 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 152 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 54% 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 12, 2010. The Edina Assessing Department consists of Liz Lopez, Assessing Technician; Mitzi Wicklund, Assessing Technician; Diane Koole, Appraiser; Bev Moos, Appraiser; Rick Nelson, Appraiser; Moreau Sankey, 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 26th 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 2nd deadline. This allows the property owner to present their case to the County Board of Appeal and Equalization for their consideration. 952- 927 -8861 City Hall FAX 952 - 826 -0390 4801 WEST 50TH STREET www.cityofedina.com TTY 952 - 826 -0379 EDINA, MINNESOTA, 55424 -1394 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 h) Upon receipt of the completed applications of property owners or taxpayers, the city assessor shall schedule hearings thereon. Board meetings shall be held until all petitions have been heard. Each appellant will be allowed a maximum of five (5) minutes to present any data or information relevant to the market value or classification of the subject property. i) The board shall take each petition under advisement and shall render its determination thereon at a subsequent meeting of the board. j) Board policy is to sustain the assessor's valuations on commercial, apartment and industrial properties, appeal applications received after the deadline, and walk -ins. This allows the property owner to present their case to the County Board of Appeal and Equalization for their consideration. k) A list of all appellants and copies of all assessor recommendations shall be sent to the local board for final consideration and decision not more than twenty (20) days from the commencement of the Board of Appeal and Equalization. 3. CONFLICTS; EX PARTE COMMUNICATIONS a) When not in session, the board shall not accept or consider any ex parte communications concerning parcels being reviewed, except as requested by the board, at a regular board meeting, in order to render an equitable decision. b) A board member shall not participate in any actions of the board which result in market value adjustments or classification changes to property owned by the board member, the spouse, parent, stepparent, child, stepchild, grandparent, brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a board member has a financial interest. The relationship may be by blood or marriage. If the board is faced with this scenario, the decision to continue with the appeal shall be made by the remaining members of the board (assuming there is still a quorum). If there is not a quorum, or the remaining board members feel that there may otherwise be a conflict of interest, "No Change" should be marked on the record form and the property owner shall be able to appeal to the county board. 3 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 S); 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 detemvned, 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 ofAppeal 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 information 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 ofthe 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 ofthe 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 adjoumed. 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. Role of the local board in the assessment process Documenting local board actions Before adjourning, the Local Board of Appeal and Equalization must prepare an official record of all actions taken by the board Minnesota Statutes 274.01, subdivision 1, paragraph (e) requires, in part, that: `The board shall list separately, on a form appended to the assessment book; all omitted property added to the list by the board and all items ofproper4 increased or decreased; with the mco ket value of each item ofproperty, added or changed by the board, placed opposite the item. . This means that the local board must prepare an official record of the proceedings. The record must reflect all board actions. Therefore, the record must list all: Assessments of property added to the tax rolls with the market value for each; Appeals brought before the board, indicating the action taken by the board (including all appeals in which the board voted "no change "). Assessments that have been increased or decreased with the market value for each. o All class changes. All changes that the county assessor brought to the board for action, indicating the action taken by the board. After the changes have been completed, the record must be signed and dated by the members of the local board who were present at the meeting. The record must also list the names and titles of all voting members of the local board, including those who are present and those who are absent, to verify that the quonum requirement was met The county assessor is to make all changes ordered by the local board that are authorized by law. Required forms for documenting board actions County assessors are required to submit any changes made by the Local and County Boards of Appeal and Equalization to the Commissioner of Revenue, along with a copy of the proceedings of each board within 10 working days following final action of the local board. The information must be filed in the manner prescribed by the Commissioner of Revenue (Minnesota Statutes, Section 270.11). Role of the local board in the assessment process 5 In recent years, there has been increasing interest by the legislature and others in the number of appeals at the local level and the effect of the changes that were made. However, because of the manner in which many counties submit this information, the Department of Revenue has not been able to respond to requests for this information. Therefore, we are requiring that the counties provide the data in a format that is complete, readable and easily interpreted. Each county will be required to submit this information in an electronic format as instructed by the Department of Revenue. To ensure that the information is consistent from local jurisdiction to local jurisdiction and from county to county, the Department of Revenue also is requiring that the local board complete the following two forms for each Local Board of Appeal and Equalization meeting: • Local Board ofAppeal and Equalization Certification Form — must be completed and signed to verify that the quorum requirement was met and to provide a summary of board actions. • Local Board ofAppeal and Equalization Record — must be completed to provide a detailed. report of the proceedings of the board. The county assessor will provide these forms to the local board. The local board will complete the forms (the jurisdiction total EMV is to be completed by the assessor), and the county assessor will take possession of the completed forms at the end of the meeting. New forms must be completed in the case of a reconvene meeting. If a recess is called, a quorum also must be present at the reconvene meeting for the local board to take valid action. To verify that the quorum requirement was met, the local board must complete and sign a Local Board ofAppeal and Equalization Certification Form for each reconvene meeting. In addition, the local board must complete a Local Board ofAppeal and Equalization Record for each reconvene meeting. The reconvene meeting(s) must be held and all business of the local board must be concluded within 20 calendar days (including the day of the initial meeting) unless the board requests a time extension in writing from the Department of Revenue and the time extension is granted by the department The date and tune for the reconvene meeting must be determined before the initial meeting is recessed. Once the Local Board of Appeal and Equalization has adjourned, they cannot reconvene. 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 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. r 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. What the board can do Reduce the value of a property. 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 Add improvements to the assessment list In reviewing the individual assessments, the board may find instances where property is not listed at its market value because the value of a building or other improvement was not included when the market.value of the property was estimated. These should be carefully reviewed by the board and placed on a tentative list of property values to be increased The board should then determine to what extent the valuation of such property should be increased. Before the board adds value for new or overlooked improvements, it must notify the owner. Change the classification of a property. In Minnesota., property is classified according to its use on the assessment date (January 2 of each year). If the property is not currently being used, it is classified according to its most probable, highest and best use. Property owners do not get to choose or request how they want their property to be classified. It is the assessor's job to classify it according to its current use or its most probable, highest and best use. The board can change the classification of any property which in the board's opinion is not properly classified. Again, it is assumed that the assessor has classified the property correctly. The classification must be based on use, and in order for the board to change the classification, the appellant must present evidence that the property is used in a manner consistent with the classification.. For example, the assessor classified the property as residential. The owner seeks the agricultural classification. In order for the board to change the classification to agricultural, the owner must prove that the property is used agriculturally and meets the statutory requirements of the agricultural class. What the board can't do The local board can't consider prior year assessments The Local Board of Appeal and Equalization doesn't have the authority in any year to reopen former assessments on which taxes are due and payable. The board considers only the assessments that are in process in the current year. Occasionally, a property owner may appear with a tax statement and protest the taxes or assessment of the previous year. The board should explain tactfully that it does not have the authority to consider such matters. After taxes have been extended, adjustments can be made only by the process of application for abatement or by legal action. Role of the local board in the assessment process 7 The local board can't orderpercentage increases or decreases for an entire class ofproperty. The authority of the local board extends over the individual assessments of real and personal property. The board can't increase or decrease by percentage all of the assessments in the district of a given class of property. Changes in the aggregate assessments by classes are made by the County Board of Appeal and Equalization. 77ie local board can't reduce the aggregate assessment by more than 1 percent Although the Local Board of Appeal and Equalization has the authority to increase or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment of the jurisdiction by more than 1 percent. The "aggregate assessment" is the total EMV that the local board has the authority to change, i.e. the total EMV of assessments within the jurisdiction excluding state assessed property. For example, if the total EMV of a jurisdiction is $2,000,000, the board cannot reduce the total EMV of the jurisdiction by more Assessor's EMV than $20,000. This + Total board EMV increases means the EMV after - Total board EMV reductions board actions must be EMV after board actions at least $1,980,000. If the total amount of adjustments made by the local board does lower the aggregate assessment by more than 1 percent, none of the adjustments will be allowed. This limitation doesn't apply, however, to the correction of clerical errors or to the removal of duplicate assessments. Clerical errors are limited to errors made by someone performing a clerical function during the course of the actual assessment. Examples of clerical errors are errors such as transposing numbers or mathematical errors. Errors that occur when making estimations during the inspection and appraisal process (judgment errors) are not considered to be clerical errors. The local board can't exempt property. The Local Board ofAppeal and Equalization does not have the authority to grant an exemption or to order property removed from the tax rolls. 71e local board can't make changes benefiting a property owner who refuses entry by the assessor. The board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. Duties: Local and County Boards Local Board of Appeal and Equalization County Board of Appeal and Equalization 11 Ensures equalization among Ensures individual assessments individual assessments, within the jurisdiction are between classes and properly valued and classified. from jurisdiction to jurisdiction. What can local and/or county boards do? ❑ Increase or decrease value of individual property. -__✓ Yes - ✓ Yes _ ❑ . Add properties to the assessment list. ✓Yes No _....— - - - -- -- ✓ Yes ✓ Yes ❑ Add improvements to the assessment list. _ . _ .. - -- _. _. _ ............. ___........_._.. � -Yes - ❑ Increase or decrease value for art entire property class_ No ❑ Chan a the classification of a ProoertY. ✓ 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.' ,.Afinnesota Statutes, Section 274.01, subdivision 1, paragraph b states that the local board may not make an individual market value adjustment or classification change that would benefit the propeny in cases where the at7>rrer or other person havbrg conft of over the property lvill not perrrrit the assessor to inspect the property and the nrterim- of arty buitdings or structures. The county board is not statutorily precluded from making a change based on the property owner's refusal to allmir the assessor access to view the property. Hor c��er simply because the statute does not explicitly preclude the county board from making such a change; it is strongly recommended that the cormty board not grant any reduction in value until the property owner has allowed the assessor access to view the property. It seeno obvious that for an assessor to make a fair and knowledgeable value estimate, IwIshe nucsi fast be allowed to vies the entire properoi Until such access is grmiled, the county board should not grant a value reduction. Par- nmmPndations 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 0 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 information 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 The following are examples of the type of data that the assessor may provide for the local board to use when determining if an adjustment is necessary. This is not an all- encompassing list, and depending on the jurisdiction, it may or may not be necessary for every board to have all the items on the list. The local board should work with the assessor to determine the specific information . to be supplied to the local board. Information on sales within the district that occurred in the previous year. Valuation tables of land types. ■ Copy of the values from the mini - abstract for the district (current year and prior year). • Printout of parcel listings for the district with the values. • Review of the current statutory classifications and the corresponding class rates. • Review of value changes by property type in the district. The local board should also be prepared to request additional background information and to ask questions of the assessor in order to assist with the board's deliberations. As a local board member, you should review the information provided by the assessor. If you have any questions about the materials, please be sure to contact the assessor. Being knowledgeable about the real estate market is the key to making informed and fair decisions. Duties of the clerk The town or city clerk plays an important role in the Local Board of Appeal and Equalization process. The following is a brief list of the duties of the clerk pertaining to the local board meeting: • The clerk should work with the county assessor to establish the meeting date(s) for the local board. • The clerk should coordinate with the board to ensure that a quorum will be present at the meeting. • The clerk must publish and post notice of the meeting at least 10 days prior to the date of the meeting (Minnesota Statutes, Section 274.01, subdivision 1). Role of the local board in the assessment process Avoid conflicts of interest No board member shall participate in the discussions or . vote on any matters relating to property in which he or she has a conflict of interest. A conflict of interest exists where a member: • has a financial interest in the property; • is a director, trustee, officer, employee or agent of any business or institution directly involved with the property; or • is related by blood or marriage to an individual having an ownership or financial interest in the property. Board members are afforded the same rights as the general public when it comes to the appeal process. However, when a local board member is appealing the value or classification of his/her property, as a general rule, the local board should not make any changes to the valuation or classification. The local board should vote "no change," and the appeal should be recorded so that the board member can appeal to the County Board of Appeal and Equalization. This will eliminate any appearance of the board having a conflict of interest or the appearance of giving preferential treatment. • The clerk should have a sign -in sheet for all appellants. • The clerk should take minutes of the meeting as part of the town or city record. • The clerk should return all necessary records to the county assessor in a timely manner. In some jurisdictions, various duties ofthe clerk may be performed by the city or county assessor or the assessor's staff. In these instances, it is recommended that the clerk be aware of and monitor the duties to ensure that all duties are performed. Section 2 SUMMARY The 2010 property assessment has been completed, and property owners received a Notice of Estimated Market Value in early March. The 2010 property assessment applies to property taxes payable in 2011 and reflects sales between October 2008 and September 2009. Key points of the 2010 property assessment include: C O • The total estimated market value for Edina in 2010 is $9.44 billion, a decrease of approximately $600 million, or 6 percent less than the $10.05 billion total in 2009. 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 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 9.44 8:69 8.03 7.08 7.48 6.23 5.45 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Assessment Year • Average 2010 market value changes are listed below for the major property classifications: Single family residential -5.1% Doubles -24.6% Zero -Lot Lines -12.5% Townhomes -4.3% Condominiums -6.7% Commercial -8.1% Industrial -2.7% Apartments -5.0% 10 In a recent reversal from the previous three years, residential values have held more of their value than commercial properties. The impact of this trend will be to shift back some of the property tax burden to residential properties from commercial. • For 2010, most single - family residential properties received statistical adjustments of 0 percent to -10 percent. This is the third 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 5.7 percent for southwestern suburban cities. Edina's decrease of 5.1 percent for single - family homes is at the low -end of the range for neighboring communities. • Distribution of the 2010 percentage changes in value by residential property type: Single Family 2% -3% 13% 22% hk 5% 55% 11 E3 Increase ■ No Change ❑ Decrease -1 to -3% ❑ Decrease -1 to -6% ■ Decrease -7 to -10% Decrease > -10% 18°/ 120/ 14% 2010 Assessment Townhomes 9% 6% 31% ?4% Condominiums AO/ i V70 23% 28% 12 ■ Increase ■ No Change o Decrease -1 to -3% ❑ Decrease -4 to -6% ■ Decrease -7 to -10% c3 Decrease > -10% ■ Increase ■ No Change ❑ Decrease -1 to -5% o Decrease -6 to -10% ■ Decrease -11 to -15% ❑ Decrease > -15% ® 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 2010, 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 2010, the COD is 6.1 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 2008 through September 2009, not the annual change in the median sale price of properties. For the 2010 assessment, the ratios for sales that occurred between October 2008 and September 2009 were as follows: Single - family residential 100.0% Doubles 126.7% Zero -lot lines 100.0% Townhouses 100.0% Condominiums 102.5% 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 2009. 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 2010 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 2, 2010, to appeal their value to the Local Board of Appeal and Equalization, which convenes April 1, 2010. 13 2004 2005 2006 2007 2008 2009 2010 SALES RATIO 96.0 95.6 96.1 95.0 96.0 95.5 95.7 COD 6.4 7.6 7.2 6.8. 5.7 5.8 6.1 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 2008 through September 2009, not the annual change in the median sale price of properties. For the 2010 assessment, the ratios for sales that occurred between October 2008 and September 2009 were as follows: Single - family residential 100.0% Doubles 126.7% Zero -lot lines 100.0% Townhouses 100.0% Condominiums 102.5% 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 2009. 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 2010 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 2, 2010, to appeal their value to the Local Board of Appeal and Equalization, which convenes April 1, 2010. 13 • The Residential Real Estate Market - The Minneapolis Area Association of Realtors (MAAR) reported that the median sales price in Edina was $324,950 in 2009, a decrease of 16 percent from the 2008 median of $387,500. This decline in the median sale price is due to a greater number of properties that sold below $400,000 and fewer sales above $400,000 occurring in 2009, compared to 2008. ►.&7I, M 200 0 150 `m 100 E 50 z I Number of Sales by Sales Price - -- —j ■ 2008 ®2009 Less than $200,000 to 400,000 to $600,000 to Greater than $199,999 $399,999 $599,999 $999,999 $1,000,000 • Edina had the lowest percentage of lender- mediated sales in the county at 12 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 Center for instance, indicates that 68 percent of the sales were lender mediated and the median sales price decreased 22 percent. (see page 15 ) 14 Changes in Median Sales Price by Area 2008 to 2009 All Sales Lender - Mediated Sales (includes sinale - familv. condos and townhomes) City 2009 Change from 2008 Median Sale Price Change from 2008 2009 Change from 2008 % of All Sales Bloomington East 355 3% $157,625 -12% 146 28% 41% Bloomington West 544 4% $210,000 -7% 145 54% 27% Brooklyn Center 675 85% $90,000 -22% 457 89% 68% Brooklyn Park 1,531 52% $135,000 -23% 1,006 88% 66% Eden Prairie 772 -4% $251,750 -10% 197 56% 26% Edina 647 _1% $324,950 -16% 78 47% 12% Golden Valle 255 16% $220,000 -15% 73 143% 29% Hopkins 196 32% $164,900 -4% 85 77% 43% Maple Grove 1,019 5% $219,346 -12% 292 55% 29% Minnetonka 634 21% $242,000 -8% 190 147% 30% New Hope 225 21% $158,000 -15% 103 69% 46% Plymouth 839 5% $253,500 -9% 174 81% 21% Richfield 553 34% $165,000 -11% 214 108% 39% St. Louis Park 670 11% $212,500 -6% 117 39% 18% Source: Regional Multiple Listing Service 15 City of Edina, Minnesota 4801 West 501" Street ■ Edina, MN 55424 -1394 ■ (952) 826 -0365 ■ FAX: (952) 826 -0389 ■ TTY: (952) 826 -0379 2010 Notice of Valuation and Classification For taxes payable in 2011- 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 The values indicated are for the January 2, 2010 Assessment for taxes payable in 2011. The prior year data has been included for comparison purposes. Property Classification: Estimated Market Value: Value of New Improvements: This Old House Exclusion: Assessment Year 2009 (For Taxes Payable in 20101 RESIDENTIAL HOMESTEAD $383,000 Assessment Year 2010 (For Taxes Payable in 2011) RESIDENTIAL HOMESTEAD $363,000 Veterans Market Value Exclusion Taxable Market Value: $383,000 $363,000 Est. Market Value Deferred: IMPORTANT INFORMATION - Appealing the Value or Classification of Your Property Appeal Option 1: Informal Appeal - Contact Your Assessor I Inquiries concerning valuation or property class should first be directed to your Assessors Office. This is an important first step of the appeals process. Many times questions and concems can be addressed informally, prior to the Local Board meetings. You should contact the Edina Assessors Office at (952) 826 -0365. 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. It 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 12, 2010 in the Council Chambers, City Hall, 4801 West 50th Street, Edina, MN 55424. If you wish to make an appeal before the Local Board, an application is required no later than Friday. April 2, 2010. Step #2 — Hennepin County Board of Appeal and Equalization The County Board of Appeal and Equalization begins on June 14, 2010, at the Hennepin County Government Center, 300 S Sixth St., Minneapolis, MN 55487. Application is required no later than May 26, 2010. 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]. 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, 2011 to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your 2010 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 16 City of Edina 4801 West 50th Street Edina, MN 55424 -1394 IMPORTANT: Property Tax Information Valuation Notice REVISED Joe Smith 1234 Oaklawn Avenue Edina, MN 55424 -1924 IMPORTANT INFORMATION AND DEFINITIONS This notice is to inform you of the market value and classification of your property for assessment year 2010. The property taxes you will pay in 2011 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. 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 2009 and 2010 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. State law (M.S. 273.11 Subd. 1) requires assessors to value property at 100 percent of market value. Value of New Improvements This is the assessor's estimate of the value of new or omitted improvements you have made to your property. This Old House Exclusion (M.S. 273.11. Subd. 16) This program expired with the 2003 assessment. However, property may still be receiving the value exclusion under this program. Applied only to homestead property 45 years of age or older and valued at less than $400,000. 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 Market Value Exclusion (M.S. 273.13. Subd. 34) Qualifying disabled veterans may be eligible for a valuation exclusion on their homestead property. Property owners with a partial Disabled Veterans Market Value Exclusion will be subject to annual reapplication in order to qualify. Taxable Market Value (M.S. 273.121) This is the value that your property taxes are actually based on, after all reductions, exclusions, exemptions and deferrals. Your 2010 value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes in 2011. 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. The assessor arrives at this lower value 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 Deferment 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. Commercial /Industrial Property (M.S. 273.13. Subd. 24) Each parcel of commercial and industrial property has a reduced, "preferred" class rate on the first tier of market value ($150,000) and a "non - preferred" rate on the remaining market value, except in the case of contiguous parcels owned by the same person or entity. Contiguous properties are classed at the "non- preferred" rate. Please call your assessor for details and exceptions. 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. After taking 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. m 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 95.0% of actual market value, half are higher, and a relative low number are valued by the Assessor at more than actual market value. Therefore, the acceptable range is 90 to 105, with a target of 95.0. Edina's 2009 assessment results in a sales ratio of 95.5. 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 considered excellent. Edina's 2009 assessment reflects a coefficient of dispersion of 5.8. COEFFICIENT OF DISPERSION: MEDIAN 95.0 VALUES ARE DISPERSED FROM MEDIAN (HIGH COEFFICIENT) MEDIAN 95.0 20 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 staff's review may make an appeal to the Local Board of Appeal and Equalization, which meets on April 13, 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 1990's. 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 2010 assessment is the second year the total market value for the city has declined. The value decrease is negated somewhat by new construction and improvements which amounts to $71,354,300 for the 2010 assessment. The improvement amount for single - family properties was $53,528,100 or 75% of the total new construction. CITY OF EDINA GROWTH 1997 -2010 YEAR MARKET VALUE NEW CONSTRUCTION VALUE INCREASE TOTAL GROWTH 1997 $4,257,192,500 0.8% 4.1% 4.9% 1998 $4,526,862,400 1.1% 4.4% 5.5% 1999 $4,904,869,300 1.5% 6.9% 8.4% 2000 $5,457,802,200 1.5% 9.9% 11.4% 2001 $6,230,194,800 1.4% 12.8% 14.2% 2002 $7,081,684,800 0.7% 13.0% 13.7% 2003 $7,487,906,000 1.0% 4.8% 5.8% 2004 $8,073,198,900 1.0% 6.8% 7.8% 2005 $8,693,345,900 0.7% 8.0% 8.7% 2006 $9,598,697,600 1.1% 9.3% 10.4% 2007 $9,984,799,500 1.3% 2.3% 3.6% 2008 $10,101,311,700 1.7% -0.3% 1.4% 2009 $10,054,504,600 1.9% -2.0% -0.1% 2010 $9,446,343,100 0.7% 1 -5.7% -5.0% 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. This is the first year of negative growth for both commercial and industrial properties 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 2010 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. For the past two years, there has been a slight shift back to residential properties similar to what we had in 2004. The fourth chart (p.24) compares the changes in total market value and total tax capacity for the city, over the past ten years. It is interesting to note that while the total market value has steadily increased from about 5.5 billion in 2000 to 9.4 billion in 2010, the total tax capacity has increased only 16 percent. This is primarily due to legislative changes made in 2001 that reduced the tax capacity rates for most classes of property. 22 CITY OF EDINA PROPERTY TYPE GROWTH —APARTMENT - }COMMERCIAL INDUSTRIAL n RESIDENTIAL 25.0 20.0 15.0 W Q 10.0 v 5.0 Z W 0.0 W a -5.0 -10.0 -15.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEAR CITY OF EDINA Market Values vs. Tax Capacities 2010 Commercial /Industrial 16% $1,478 Apartments Residential 4% 80% $365 $7,603 Pro Residential 70% $80 Class 2010 Commercial /Industrial 26% $29 2010 Total Market Value: 2010 Total Tax Capacity: $9,446 Million $114 Million Values in Millions of Dollars 23 Apartments 4% $4 CITY OF EDINA TAX CAPACITY by PROPERTY CLASS 2000 -2010 80.00% 70.00% 60.00%--. Percentage of 50.00% - Total Tax 40.00% Capacity 30.00% 20.00% 10.00% 0.00% 2000 2002 2004 2006 2008 2010 Assessment Year ■ Residential ■ Comm /Ind ❑ Apts GROWTH IN TOTAL MARKET VALUE vs. TOTAL TAX CAPACITY 2000 -2010 $12,000 $10,000 H $8,000 ° $6,000 u9 $4,000 $2,000 $0 o° o`' o° ol o° o° �° �o yo yo yo �o I f 1yo ,yo �o �o y Assessment Year $140 $120 $100 c $80 $60 $40 $20 $0 oA o° o°' ^ yo yo yo yo �o �o yo yo ,yo �yo 'yo ° Assessment Year Total Increase in Market Value Total Increase in Tax Capacity 73% 16% 24 RESIDENTIAL ASSESSMENT Edina Single- Family Residential Sales 2002 -2009 — which indicates the median and average sales price for the last seven years EDINA SINGLE- FAMILY RESIDENTIAL SALES BY CALENDAR YEAR YEAR MEDIAN AVERAGE # OF SALES 2002 $345,000 $436,277 613 2003 $360,000 $468,968 605 2004 $389,900 $498,701 583 2005 $425,000 $510,987 492 2006 $469,000 $568,985 474 2007 $437,250 $595,622 414 2008 $450,080 $558,005 363 2009 $389,950 $494,851 317 The median sale price (the point where half the homes sell for more and half for less) for single- family homes that sold in 2009 is $389,950. This is a decrease of 13% from the median sale price in 2008 of $450,080. Edina Single - Family Houses 2002 -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 $411,500. $700,000 > $600,000 W $500,000 V $400,000 as $300,000 Lu $200,000 can $100,000 $0 EDINA SINGLE FAMILY HOUSES 2002 2003 2004 2005 2006 2007 2008 2009 YEAR 25 --r— Ave SP --w-- Median SP Median EMV RESIDENTIAL ASSESSMENT (continued) For the 2010 assessment, 313 residential sales which occurred between October 2008 and September 2009 were analyzed both for market trends as well as the assessment ratio (assessor's value divided by sale price) on the sales. For 2010, 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 2009 to 2010 for Edina's 12,540 single- family homes: 2', Single Family 00/ 55% The following pages include: 5% o Increase n No Change ❑ Decrease -1 to -3% ❑ Decrease -4 to -6% I ■ Decrease -7 to -10% o Decrease > -10% 1. District Maps —which shows Edina's 41 geographic districts 2. Qualifying Single- Family Residential Sales from January 2009 to December 2009 -which shows individual sales by District 26 NW Districts All Other Parcels O 21 22 23 O 24 "I 25 30 - 31 o33 34 - 35 - 36 37 _ 42 S Districts All Other O 15 - 16 17 - 18 19 - 20 26 0 27 26 - 29 ® 38 - 39 40 Residential Parcels by District City of Edina Assessing Department 27 NE Districts All Other Parcels 01 02 03 ® 04 O 05 O6 ® 07 C 08 09 10 11 12 ® 13 O 14 s-+ ii♦- 1= OIL] `� i 1 1 W ag Northeast Assessing Area t* 0 FS n■ nl MO Mo no am me ■t t1 1■ "'a am 00 �1 � ■ on ■■ 62 ._ __ __.. _. WM m Q m v c A Northeast Districts mask highway All Other Parcels . 01 stv� 0 02 O 03 ® 04 0 05 06 07 08 �j 09 10 Cf 11 0 12 Lai 13 = 14 29 City of Edina Assessing Department I _y1 xw., City of Edina Qualifying Sales by District for Calendar Year 2009 District Morningside 01 01 01 01 01 01 01 01 01 01 01 01 01 01, White Oaks 02 02 02 02 02 02 02 02 02 Country Club 03 03 03 03 03 03 03 03 03 03 03 03 03 Sunnyslope 04 Indianola/Juanita 05 Brucewood 06 06 06 Golf Terrace 07 07 Address Sale Date Sale Price 4247 Alden Dr 08/21/2009 $ 305,000 4113 Morningside Rd 12/18/2009 $ 315,000 4010 Monterey Ave 05/15/2009 $ 321,000 4300 Branson St 12/31/2009 $ 350,000 4244 Alden Dr 09/01/2009 $ 353,500 4006 Lynn Ave 08/28/2009 $ 359,000 4502 42nd St W 03/25/2009 $ 390,000 4240 Crocker Ave 12/31/2009 $ 400,000 4230 Scott Ter 07/21/2009 $ 409,000 4204 Oakdale Ave 11/12/2009 $ 420,700 3924 44th St W 06101/2009 $ 430,000 4224 Oakdale Ave 07/29/2009 $ 435,000 4043 Sunnyside Rd 07/14/2009 $ 525,000 4243 Grimes Ave 09/01/2009 $ 580,000 4634 France Ave S 08/13/2009 $ 319,000 4915 Maple Rd 04/30/2009 $ 487,000 4932 Maple Rd 07/15/2009 $ 510,000 4832 Townes Rd 09/25/2009 $ 620,000 3913 48th St W 07/30/2009 $ 630,000 4817 Townes Rd 07/24/2009 $ 800,000 4819 Maple Rd 08/10/2009 $ 815,000 4713 Townes Rd 02/11/2009 $ 1,225,000 4611 Townes Cir 05/08/2009 $ 1,875,000 4615 Wooddale Ave 01/21/2009 $ 619,000 4706 Sunnyside Rd 07/07/2009 $ 775,000 4505 Bruce Ave 07/31/2009 $ 871,250 4909 Bruce Ave 06/26/2009 $ 880,000 4911 Arden Ave 07/24/2009 $ 930,000 4409 Country Club Rd 03/06/2009 $ 968,500 4116 Sunnyside Rd 04/14/2009 $ 977,000 4400 Sunnyside Rd 09/08/2009 $ 990,000 4619 Browndale Ave 08/04/2009 $ 1,267,500 4612 Moorland Ave 06/23/2009 $ 1,275,000 4517 Drexel Ave 09/25/2009 $ 1,450,000 4302 Sunnyside Rd 07/24/2009 $ 1,475,000 4505 Wooddale Ave 10/30/2009 $ 1,900,000 4816 Woodhill Way 09/30/2009 $ 720,000 5109 Gorgas Ave 08/25/2009 $ 400,000 5004 Bruce Ave 10/23/2009 $ 1,277,000 5112 Arden Ave 09/01/2009 $ 1,300,000 4429 52nd St W 09/15/2009 $ 1,700,000 4614 Lakeview Dr 01/09/2009 $ 625,000 4808 Lakeview Dr 10/09/2009 $ 897,750 31 City of Edina Qualifying Sales by District for Calendar Year 2009 N 58th Sher /So Har Pk 08 4312 58th St W 07/24/2009 $ 303,000 08 5625 Kellogg PI 12/18/2009 $ 332,000 08 5713 St Johns Ave 07/16/2009 $ 375,000 08 5716 Fairfax Ave 11/18/2009 $ 380,000 08 4605 Concord Ter 06/24/2009 $ 380,624 08 5712 Wooddale Ave 06/26/2009 $ 394,500 08 4505 Woodland Rd W 09/11/2009 $ 408,500 08 5505 Oaklawn Ave 08/21/2009 $ 507,000 08 5504 Woodcrest Dr 08/06/2009 $ 539,000 08 4601 Oak Dr 10/28/2009 $ 551,500 08 5600 Kellogg PI 03/13/2009 $ 575,000 08 5605 St Andrews Ave 03/16/2009 $ 589,550 08 5516 Brookview Ave 06/18/2009 $ 590,000 08 5433 Brookview Ave 02/25/2009 $ 630,000 08 5513 Dever Dr 12/09/2009 $ 645,000 08 4817 Lakeview Dr 09/09/2009 $ 700,000 08 4528 Tower St 11/03/2009 $ 775,500 08 5313 Kellogg Ave 03/30/2009 $ 840,000 08 5500 Halifax La 12/03/2009 $ 870,000 08 5216 Oaklawn Ave 07/23/2009 $ 938,614 08 5401 Halifax La ' 1 09/25/2009 $ 997,000 08 5508 Brookview Ave 10/12/2009 $ 1,150,000 08 5501 Woodcrest Dr 12/30/2009 $ 1,625,000 Wood land/Woodcrest 09 5616 'Woodcrest Dr 09/1612009 $ 563,000 09 5665 Woodcrest Dr 09/15/2009 $ 750,000 09 5616 Park PI 12/09/2009 $ 790,000 E France No 60th 10 5901 France Ave S 07/16/2009 $ 135,000 10 5436 Xerxes Ave S 09/11/2009 $ 183,900 10 3513 54th St W 08/18/2009 $ 187,800 10 5604 Zenith Ave S 07/28/2009 $ 196,000 10 5920 Zenith Ave S 08/20/2009 $ 199,900 10 5804 Zenith Ave S 09/24/2009 $ 214,900 10 5801 Zenith Ave S 09/2312009 $ 229,305 10 5913 Abbott Ave S 07/01/2009 $ 237,500 10 5916 Zenith Ave S 06/30/2009 $ 238,000 10 5705 York Ave S 09/14/2009 $ 239,900 10 5412 Xerxes Ave S 12/0912009 $ 245,000 10 5837 Beard Ave S 07/31/2009 $ 248,000 10 5840 Abbott Ave S 07/29/2009 $ 257,000 10 5929 York Ave S 03/27/2009 $ 262,000 10 5824 Beard Ave S 04/30/2009 $ 268,000 10 5700 York Ave S 08103/2009 $ 270,000 10 5725 France Ave S 01/20/2009 $ 275,600 10 5733 Drew Ave S 06/15/2009 $ 277,500 10 3504 Fuller St 11/12/2009 $ 285,000 10 5816 Drew Ave S 08/19/2009 $ 289,900 10 5832 York Ave S 08/14/2009 $ 292,500 10 5701 France Ave S 07130/2009 $ 308,000 10 5524 York Ave S 06/15/2009 $ 320,000 32 City of Edina Qualifying Sales by District for Calendar Year 2009 10 5620 York Ave S 03/26/2009 $ 331,000 10 5728 Drew Ave S 04/13/2009 $ 345,000 10 5733 York Ave S 09/24/2009 $ 345,877 10 5924 Chowen Ave S 08/19/2009 $ 365,000 10 3315 55th St W 11/04/2009 $ 375,000 10 5733 Zenith Ave S 12/11/2009 $ 410;000 E France So 60th 11 6012 Xerxes Ave S 10/09/2009 $ 205,000 11 6129 Beard Ave S 11/12/2009 $ 214,000 11 6133 Beard PI 10/29/2009 $ 241,000 11 6000 Chowen Ave S 11/02/2009 $ 250,000 11 6301 Ewing Ave S 04/07/2009 $ 265,225 11 3105 60th St W 11/1212009 $ 299,900 11 6113 Beard Ave S 02/27/2009 $ 300,000 11 6021 Chowen Ave S 07/17/2009 $ 307,000 11 6119 Beard PI 08/24/2009 $ 307,000 11 6301 France Ave S 03/27/2009 $ 353,225 11 6008 Beard Ave S 09/01/2009 $ 359,900 11 6201 Chowen Ave S 10/30/2009 $ 360,000 11 6136 Beard Pi 05/15/2009 $ 370,000 11 6104 Ewing Ave S 09/16/2009 $ 370,000 11 6201 Ewing Ave S 11/03/2009 $ 400,000 Halifax/Grimes 12 3913 58th St W 01/27/2009 $ •253,000 12 5900 Grimes Ave 12/01/2009 $ 308,000 12 5940 Halifax Ave 03/26/2009 $ 350,000 12 6009 Halifax Ave 06/15/2009 $ 480,000 S 58th /Fairfax Area 13 6032 Kellogg Ave 09/18/2009 $ 190.,000 13 5833 St Johns Ave 09/15/2009 $ 238,000 13 6008 Kellogg Ave 05/29/2009 $ 239,900 13 5924 Fairfax Ave 12/14/2009 $ 255,000 13 5804 Ashcroft Ave 06/25/2009 $ 270,000 13 5816 Fairfax Ave 09/25/2009 $ 278,500 13 5821 Brookview Ave 05/22/2009 $ 286,000 13 5805 Oaklawn Ave 08/10/2009 $ 304,500 13 5817 St Johns Ave 04/17/2009 $ 324,900 13 5945 Ashcroft Ave 12/0812009 $ 342,000 13 5820 St Johns Ave 07/15/2009 $ 348,000 13 5800 Kellogg Ave 04/30/2009 $ 351,000 13 5921 Kellogg Ave 09/08/2009 $ 359,900 13 5828 Oaklawn Ave 05/14/2009 $ 370,000 13 6025. Wooddale Ave 11/06/2009 $ 383,000 So Jr High /Concord 14 6112 St Johns Ave 08/10/2009 $ 305,000 14 6216 Ashcroft La 05/13/2009 $ 315,000 14 6201 St Johns Ave 05/29/2009 $ 359,600 14 4705 School Rd 11/30/2009 $ 361,500 14 6021 Fairfax Ave 03/16/2009 $ 399,150 14 6012 Wooddale Ave 08/11/2009 $ 399,900 14 6216 Concord Ave 10/28/2009 $ 400,000 14 6104 Ryan Ave 06/19/2009 $ 400,000 33 City of Edina Qualifying Sales by District for Calendar Year 2009 14 4724 60th St W 09/10/2009 $ 421,000 Lake'Cornelia 16 6924 Southdale Rd 11/04/2009 $ 295,000 16 6900 Hillcrest La 11/23/2009 $ 307,000 16 4713 Dunberry La 06/03/2009 $ 320,000 16 6817 Normandale Rd 05/20/2009 $ 336,000 16 6944 Cornelia Dr 07/31/2009 $ 340,000 16 6904 Wooddale Ave 07/06/2009 $ 340,000 16 6912 Creston Rd 11/12/2009 $ 340,000 16 4712 Upper Ter 02/27/2009 $ 359,900 16 4905 Payton Ct 02/06/2009 $ 360,000 16 6908 Dawson La 08/18/2009 $ 365,000 16 6808 Southdale Rd 11/12/2009 $ 365,000 16 6841 Oaklawn Ave 08/18/2009 $ 420,000 16 4808 Roycar Rd 05/26/2009 $ 431,650 16 6904 Dawson La 08/28/2009 $ 445,000 16 6828 Point Dr 10/29/2009 $ 477,000 . 16 6709 West Shore Dr 09/04/2009 $ 480,000 16 6616 Brittany Rd 09/30/2009 $ 500,000 16 6949 Southdale Rd 08/03/2009 $ 500,000 16 6609 Cornelia Dr 10/21/2009 $ 626,300 16 6636 Brittany Rd 11/12/2009 $ 677,000 Oscar Roberts 17 7124 Heatherton Tr 02/23/2009 $ 300,000 17 7009 Heatherton Tr 12/18/2009 $ 300,000 17 7312 Glouchester Dr 06/19/2009 $ 345,000 17 7017 Bristol Blvd 10/12/2009 $ 365,000 17 7208 Cornelia Dr 04/08/2009 $ 512,000 So 70th /Lake Edina 18 7104 Wooddale Ave 06/08/2009 $ 291,000 18 4504 Belvidere La 05/20/2009 $ 330,000 18 4413 Claremore Dr 05/26/2009 $ 360,000 18 4433 Dunham Dr 09/01/2009 $ 380,000 18 7312 West Shore Dr 05/29/2009 $ 385,000 18 4517 Belvidere La 10/14/2009 $ 424,000 18 4429 - Claremore Dr 05/29/2009 $ 459,900 18 7236 Monardo La 07/03/2009 $ 515,000 18 4437 Fondell Dr 11/02/2009 $ 524,000 18 4505 Gilford Dr 06/11/2009 $ 539,000 18 7028 Kellogg Ave 09/30/2009 $ 540,000 18 4436 Fondell Dr 10/08/2009 $ 545,000 Brookview Hts 19 5128 Meadow Ridge 07/24/2009 $ 270,000 19 5120 Meadow Ridge 06/17/2009 $ 295,000 19 5301 Whiting Ave 02/12/2009 $ 299,900 19 5212 70th St W 11/20/2009 $ 315,000 19 5129 Abercrombie Dr 10/01/2009 $ 347,900 19 5177 Abercrombie Dr 09/0812009 $ 379,000 19 5144 Danens Dr 06/15/2009 $ 382,300 19 5209 Duggan Plaza 02/20/2009 $ 395,000 19 5180 Abercrombie Dr 08/26/2009 $ 412,000 19 6536 Ridgeview Dr 08/25/2009 $ 450,000 34 City of Edina Qualifying Sales by District for Calendar Year 2009 19 5000 Nob Hill Dr 08/11/2009 $ 532,500 Wilryan So Xtown 20 6336 Wilryan Ave 10/22/2009 $ 204,000 20 6337 Warren Ave 03/30/2009 $ 235,000 20 6308 Wilryan Ave 07/31/2009 $ 237,300 20 6305 Mildred Ave 06/03/2009 $ 281,000 Rich mond /Birchcrest 21 5321 Windsor Ave 03/19/2009 $ 195,000 21 5612 Melody Lake Dr 09/30/2009 $ 275,000 21 5103 Windsor Ave 08/25/2009 $ 285,000 21 5812 Eastview Dr 05/01/2009. $ 305,000 21 6204 Code Ave 08/14/2009 $ 305,500 21 6205 Wilryan Ave 03/13/2009 $ 307,000 21 5616 Dale Ave 05/29/2009 $ 308,400 21 5700 Dale Ave 08/27/2009 $ 315,000 21 5905 Josephine Ave 11/03/2009 $ 322,000 21 5009 Windsor Ave 06/16/2009 $ 331,000 21 5200 60th St W 09/18/2009 $ 331,250 21 5304 Forslin Dr 04/15/2009 $ 352,189 21 5101 Grove St 07/30/2009 $ 356,000 21 5816 Eastview Dr 11/25/2009 $ 360,000 21 6001 Porter La 04/30/2009 $ 385,000 21 5213 61 st St W 07130/2009 $ 394,000 21 5217 56th St W 07/31/2009 $ 425,000 21 5801 Dale Ave 07/20/2009 $ 440,000 21 5616 Bernard PI 07/23/2009 $ 442,000 21 5108 Valley View Rd 06/24/2009 $ 445,000 21 6113 Code Ave 07/17/2009 $ 465,000 Brookside 22 4532 Rutledge Ave 06/19/2009 $ 216,500 22 5117 48th St W 08/05/2009 $ 227,810 22 5013 Hankerson Ave 03/12/2009 $ 235,000 22 4537 Rutledge Ave 04/10/2009 $ 257,000 22 5224 51st St W 09/11/2009 $ 269,900 22 5121 William Ave 06/08/2009 $ 275,000 22 5010 Moore Ave 07/31/2009 $ 280,000 22 5101 William Ave 04/30/2009 $ 285,000 22 4525 Vandervork Ave 12/17/2009 $ 288,400 22 5025 Hankerson Ave 08/27/2009 $ 288,500 22 4816 Rutledge Ave 09/25/2009 $ 302,000 22 5012 Bedford Ave 06/06/2009 $ 309,000 22 4524 Parkside La 11/27/2009 $ 315,000 22 5125 William Ave 09/30/2009 $ 355,000 22 5340 Interlachen Blvd 04/07/2009 $ 380,000 Rolling Green 23 4725 Annaway Dr 11/11/2009 $. 2,100,000 23 4812 Bywood West 12/22/2009 $ 3,525,000 Highland 24 5616 Highwood Dr 05/20/2009 $ 290,000 24 5613 Highwood Dr 05/29/2009 $ 297,500 24 .6100 Eden Prairie Rd 08/21/2009 $ 319,300 24 5504 Highwood Dr 03/03/2009 $ 395,000 35 City of Edina Qualifying Sales by District for Calendar Year 2009 24 5505 Mirror Lakes Dr 04/10/2009 $ 479,000 24 5517 Highwood Dr 05/05/2009 $ 497,500 24 5201 Mirror Lakes Dr 12/14/2009 $ 520,000 24 5404 Glengarry Pkwy 04/17/2009 $ 800,000 24 5725 Interlachen Blvd 10/12/2009 $ 910,000 24 5824 Northwood Dr 07/15/2009 $ 1,495,000 24 5004 Skyline Dr 09/30/2009 $ 1,500,000 Countryside 25 5708 Hawkes Ter 01/27/2009 $ 300,000 25 5605 Hawkes Dr 08/19/2009 $ 312,000 25 6009 Tracy Ave 04/30/2009 $ 325,000 25 6309 Hillside Rd 01/28/2009 $ 342,000 25 5809 Arbour Ave 11/12/2009 $ 349,000 25 5417 Grove St 06/30/2009 $ 354,500 25 5705 Grove St 08/25/2009 $. 369,000 25 6324 Valley View Rd 08/11/2009 $ 375,000 25 6112 Crescent Dr 06/30/2009 $ 380,000 25 5808 Olinger Blvd 11/06/2009 $ 380,000 25 5636 Johnson Dr 10/30/2009 $ 385,000 25 5808 Merold Dr 08/14/2009 $ 406,000 25 5708 Benton Ave 05/29/2009 $ 410,000 25 5617 Countryside Rd 02/27/2009 $ 412,000 25 5916 Olinger Blvd 07/30/2009 $ 439,900 25 5800 Amy Dr 05/22/2009 $ 442,000 25 5825 Grove St 04/16/2009 $ 445,000 25 6112 Westridge Blvd 09/24/2009 $ 452,500 25 6104 Crescent Dr 09/15/2009 $ 463,000 25 6338 Valley View Rd 03/13/2009 $ 465,000 25 5805 Arbour Ave 07/24/2009 $ 488,000 25 5825 Jeff PI 11/13/2009 $ 492,000 25 5513 Warden Ave 02/26/2009 $ 565,000 25 5829 Olinger Rd 08/25/2009 $ 570,000 Creek Valley /Limerick 26 6801 Antrim Rd 08/20/2009 $ 256,600 26 5837 Creek Valley Rd 08/19/2009 $ 349,000 26 6804 Hillside La 11/02/2009 $ 387,000 26 6812 Limerick La 05/01/2009 $ 420,000 26 6700 Galway Dr 07/06/2009 $ 449,000 26 5605 Hillside Ct 06/19/2009 $ 465,000 26 6809 Hillside La 12/15/2009 $ 490,000 . 26 5728 Susan Ave 07/31/2009 $ 575,000 26 6708 Rosemary La 07/30/2009 $ 584,000 26 6600 Gleason Rd 07/27/2009 $ 640,000 26 6828 Chapel La 01/16/2009 $ 650,000 26 6205 Creek Valley Rd 07/02/2009 $ 675,000 Kemmrich /Shannon 28 7505 Gleason Rd 04/03/2009 $ 414,000 28 7301 Gleason Rd 05/18/2009 $ 455,200 28 5808 Dewey Hill Rd 09/17/2009 $ 500,000 28 7100 Fleetwood Dr 03/11/2009 $ 502,000 28 7413 Gleason Rd 07/20/2009 $ 612,500 28 7204 Lanham La 06/30/2009 $ 650,000 City of Edina Qualifying Sales by District for Calendar Year 2009 28 7205 Lanham La 06/16/2009 $ 693,000 28 7308 Schey Dr 07/20/2009 $ 720,000 28 7113 Shannon Dr 08/24/2009 $ 730,000 Dewey Hill D 7717 Marth Ct 06/29/2009 $ 680,000 29 5839 Long Brake Tr 09/03/2009 $ 848,000 Mendelsohn 30 500 Arthur St 02/25/2009 $ 240,000 30 313 Griffit St 07/17/2009 $ 285,000 30 6408 Mendelssohn La 07/24/2009 $ 333,200 30 6521 Belmore La 09/24/2009 $ 347,500 30 6611 Waterman Ave 07102/2009 $ 435,000 Mills Heights M 419 Van Buren Ave 07/28/2009 $ 229,000 Park Knolls New 34 5304 Highwood Dr W 09/25/2009 $ 507,000 34 5225 Evanswood La 09/25/2009 $ 577,500 34 5115 Lake Ridge Rd 09/01/2009 $ 730,000 34 6420 Willow Wood Rd 07/23/2009 $ 875,000 34 6309 Westwood Ct 07/28/2009 $ 1,575,000 Park Knolls Older 6201 Schaefer Cir 06/25/2009 $ 525,000 35 35 5709 Schaefer Rd 05/19/2009 $ 617,500 35 5702 Blake Rd 12/21/2009 $ 1,222,000 35 6504 Stauder Cir 01/23/2009 $ 1,900,000 35 5500 Parkwood La 04/23/2009 $ 2,375,000 Park Knolls Middle 36 5705 Continental Dr 11/13/2009 $ 550,000 36 5717 Camelback Dr 06/01/2009 $ 660,000 Artic Way/Tamarac 37 5913 Walnut Dr 10/30/2009 $ 384,500 37 6146 Arctic Way 03/27/2009 $ 622,000 Indian Hills 38 6315 Timber Tr 11/24/2009 $ 590,000 38 6521 Navaho Tr 07/17/2009 $ 675,000 38 6421 Indian Hills Rd 06/19/2009 $ 850,000 Sioux Trail 39 7020 Sally La 08/05/2009 $ 340,000 39 7008 Sally La 11/02/2009 $ 448,465 39 6801 Indian Hills Rd 07/31/2009 $ 450,000 39 6713 West Tr 12/18/2009 $ 470,000 39 7033 Comanche Ct 06/26/2009 $ 490,000 39 6411 Mccauley Cir 03/06/2009 $ 566,000 39 6737 Apache Rd 12/15/2009 $ 575,000 39 6700 West Tr 07/10/2009 $ 583,000 Braemar 40 7124 Gleason Rd 03/26/2009 $ 550,000 40 6825 Gleason Rd 02105/2009 $ 589,900 40 7005 Valley View Rd 08/28/2009 $ 638,248 37 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 2010 assessment. These amounts do not include increases in value due to new construction. The reported adjustments are as follows: W 2005 PERCENT CHANGE 2006 PERCENT CHANGE 2007 PERCENT CHANGE. 2008 PERCENT CHANGE 2009 PERCENT CHANGE 2010 PERCENT CHANGE CITY Bloomington 7.9 7.1 1.9 -2.9 -5.5 -5.6 7.5 6.2 K3.2 -0.9 -4.7 -6.1 Eden Prairie 7.5 10.9 1.3 -1.1 -1.9 -5.1 Edina 9.3 8.2 3.0 -2.5 -3.3 -6.2 Hopkins 8.4 8.6 2.8 -2.9 -5.0 -5.4 Maple Grove 6.6 7.8 2.2 -1.8 -4.3 -6.4 Minnetonka 6.3. 7.6 2.2 -2.6 -4.6 -5.8 Plymouth 8.8 6.5 2.6 -0.7 -2.3 -4.6 St. Louis Park 7.8 7.9 2.4 -1.9 -4.0 -5.7 Average W APARTMENT AND COMM ERCIALJINDUSTRIAL 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 10 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/I NDUSTRIAL Jurisdiction Assessment Sales Sales Ratio Coefficient of Year. Dispersion 2010 4 104.0 10.6 Edina 2009 3 75.3 9.0 2008 6 87.3 9.3 Hennepin 2010 90 98.0 11.3 County 2009 130 94.8 12.5 2008 166 93.1 11.5 APARTMENTS. 2010 3 100.5 7.1 Edina 2009 1 91.9 - -- 2008 0 - -- - -- Hennepin 2010 19 100.5 6.1 County 2009 30 98.0 9.1 2008 25 97.5 4.1 39 , � f APARTMENT AND COMM ERICIAL/INDUSTRIAL ASSESSMENT (continued) The problems in the financial markets and the U.S. economy continue to have an impact on commercial real estate. Job losses have become broad - based, reaching beyond industries related to the housing downturn. This in turn has increased vacancies in the office market. Vacancy in the Southwest market has topped the 20% level for the first time in 20 years Due to economic uncertainty, high unemployment and the resulting decline in consumer spending, many retailers have either closed or filed for bankruptcy. Vacancies have increased for all retail product types, exceeding 10 %. For the multi- tenant industrial market, vacancy rates have risen, while rental rates and prices have fallen. The Southwest market vacancy posted a 16% vacancy rate. Demand for apartments has dropped as a result of the recession and job loss, forcing renters to "double up," downsize or move in with relatives. Edina's vacancy is 8.9% compared to 6.4% for the Twin Cites' market as a whole. For Suburban Hennepin County apartments were reduced overall by 5.8 %; commercial property decreased by 7.3% and industrial property declined overall by 5.4% for 2010. City of Edina Percent Change in Market Value By Property Type YEAR OFFICE INDUSTRIAL APARTMENT 2006 +12.2% +13.2% +6.6% +6.2% 2007 +10.4% +0.7% +15.4% +10.0% 2008 +8.8% +4.0% +2.6% -0.9% 2009 -3.1% +2.8% 0% -1.6% 2010 - 13.8 % -2.7% -5.5% -5.0% W 2010 ASSESSMENT CALENDAR DATE ACTION March 1 County Auditor's target date for mailing 2010 property tax statements. March 8 City Assessor's target date for mailing 2010 value notices. April 2 Last day for property owners to file an appeal to appear at the Local Board. April 12 Local Board of Appeal'and Equalization. April 26 Reconvened meeting for Local Board of Appeal April 30 Last day for property owners to file State Tax Court petitions regarding the 2009 assessment. May 26 Last day for property owners to file an appeal to appear at the County Board of Appeal and Equalization June 14 Hennepin County Board of Appeal and Equalization. 41 " ! Section 3 SIMPLIFIED CHART OF PROPERTY TAX PROCESS ®_V__ -- - - ®- �determines what property l is taxed, and by what procedures— ASSESSOR -mm- d lists all taxable property,, 1 estimates value of I this property___.. 9 j sends valuation notices I to property owners _ property owners can l !appeal their assessmentl I sends final assessment I roll to Hennepin County STATE LEGISLATURE CITY COUNCIL review budgets and l proposed tax rate ®holds truth -in- taxation l meetings 1 sets tax levy and sends l l to County —j HENNEPIN COUNTY applies tax rate to assessedI values and sends out I L _ m resulting tax bills — _ 42 determines levy limits l and budget procedures, 1 CITY MANAGER !sends proposed budgetl to council PROPERTY TAX REFUNDS AND PROGRAMS Prooertv Tax Refunds Available The regular property tax refund provides relief to property owners who meet certain guidelines. For 2009, homeowners whose adjusted gross incomes are less than $98,290 and renters less than $53,030 are eligible for the program. Homeowners may receive a refund of up to $2,350; renters are eligible for up to $1,510. The special refund program offers relief to property owners, regardless of income, whose taxes in 2010 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 711 for MN relay). 43 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. .. i CONNECTING & INNOVATING LEAGUE a MINNESOTA SINCE i9ig CITIES 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 UNI`iERSITYAVE. WEST ST PAUL. MN 55103 -2044 45 [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). p imm. (651) 261 -1200 FAx (651) 261 -1299 TOLL FREB (800) 933 -1122 wry Wu"Utaoaa 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. ., i [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. [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 subtracted 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 47 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. Glossary of 'Terms 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 provide 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 48 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. 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 by first totaling the tax capacities of all parcels of property within a city. Adjustments for fiscal disparities, tax increment and a portion of the powerline value are made to this total since not all tax capacity is available for general tax purposes. T_1-1.- A. ..1..,... + Truth -in- Taxation - The "taxation and notification law" which requires local governments to set estimated levies, inform taxpayers about the impacts, and hold a separate hearing to take taxpayer input. 1 6Uiu h. waaO LQLVJ Property Class Taxes Local Taxes State Tax Payable Payable 2007 Payable 2008 2008 Residential Homestead: <$76,0001 1.0% 1.0% No state tax $76,0004500,000 1.0 1.0 >$500,000 1.25 1.25 Non - homestead Residential: Single unit: <$76,0001 1.0 1.0 No state tax $76,000- $500,000 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: 1.5 Subject to state levy (Commercial - <$100,0002 1.5 1.5 1.5 industrial rate) $100,000 - $150,000 >$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 'First tier limit was $100,000 for 1997, $150,000 thereafter Rachel Walker, League of Minnesota Cities — Updated August 2008 .• LEAGUE 0 of CONNECTING & INNOVATING MINNESOTA SINCE 1913 CITIES 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 front page 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 UNIVERSITY 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. 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 50 PHONE: (651) 281 -1200 FAx: (651) 281 -1299 TOLL FREE: (800) 925 -1122 WEB: WWW.LMCORG 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 example, 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 51 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 The statement 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 Agricultural 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. 52 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 2007. 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. 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 spending by one or more jurisdictions, classification changes, assessed value change, etc.). Locations and dates for hearings on the proposed taxes are listed on the bottom of the notice. The levy may-change as a result of these hearings, Resources future referendums, legal judgments, natural disasters or special assessments. A jurisdiction's final levy must be certified by Dec. 28. League of Minnesota Cities www.Ime.org/ResearchAnalvsis/AiialysisByTopic.cfm • Local Government Aid 101 • Market Value Homestead Credit 101 • Property Tax 101 • Property Tax Relief 101 Minnesota Department of Revenue • Sample TNT Notices http://ww,,v.taxes.state.inn.us/property tax-administrators/other supporting contem/tnt200 8 main.shtml • Sample Property Tax Statement http: / /www.taxes.state.mn.us /property tax--administrators/other supporting content/prmtt axstatement 2008.shtml House Research http:// ww w.house.IeR.state.mn.us /hrd/hrd htm • Classification rates • Limited Market Value Brief 53 CONNECTING & INNOVATING SINCE 1913 Market Value Homestead Credit X01 This guide is intended to describe the basics of the Market Value Homestead Credit (MVHC) program. The program was designed to provide state -paid property tax relief to owners of certain qualifying homestead property. The MVHC program is closely tied to the property tax system, a detailed description of which can be found in the "Property Taxation 101" guide. Background In the 2001 legislative session, state lawmakers eliminated the Homestead and Agricultural Credit Aid (HACA) program, which had provided $200 million in state aid to cities for property tax relief. Of these funds, $140 million were folded into the Local Government Aid (LGA) program. The 2001 property tax reform bill eliminated the general education property tax levy, bringing tax relief to all property owners, including homeowners, and replaced it with a new state property tax on businesses. The Legislature also created the Market Value Homestead Credit (MVHC) program, giving most homeowners additional tax relief. How it works for homeowners: "The credit" The MVHC program reduces the property tax owed on a homestead property by 0.4% of the homestead's market value, up to a maximum per property of $304. Credit = market value x 0.4% The maximum credit of $304 occurs at a market value of $76,000. For homesteads with market values over $76,000, the credit is reduced by 0.09% of the excess market value. Credit = $304 — ((market value - $76000) x 0.09 %) Homesteads with market value of $413,778 and higher do not receive any credit. The table below shows some sample market values and corresponding credit amounts. Homestead Market Value $50,000 $76,000 $100,000 $200,000 $350,000 $413,778 Market Value Homestead Credit $200 $304 $282 $192 $57 $0 On each homeowner's property tax bill, the market value homestead credit is allocated to the local taxing districts (city, county, school, special districts) according to the share of the total tax rate that each taxing district represents. For example, if the city tax rate is 30% and the total tax rate is 120 %, a fourth of the market value credit is allocated to the city portion of the homestead's property tax bill. 145 UNIVERSITY AVE. WEST PHotz: (651) 281 -1200 FAx (651) 281 -1299 ST. PAUL. MN 53103 -2044 54 mu no0 (800} 925 -1122 WES: vvvvKLMV -.oaci How it works for cities: "The reimbursement" The MVHC reimbursement is not an aid; it does not represent dollars in addition to what the city has levied. The reimbursement makes up part of a city's levy. Cities do not budget for it. The credit to- homeowners reduces a city's property tax receipts by the amount of the credit allocated to the city. This means the city will receive less thans certified tax levy from taxpayers. The state makes up the difference by reimbursing the city for the city portion of the credit received by property owners. The combination of after - credit tax receipts and the MVHC reimbursement should equal the city's certified levy. For most cities, between five and fifteen percent of the city's levy is paid by the state through the MVHC reimbursement. An example helps to illustrate how the program works. Assume a city certifies a levy of $100. After taxpayers pay their tax bills, $90 is generated for the city. The difference between what is generated from taxpayers ($90) and what the city certified ($100) is made up by the. MVHC I . . reimbursement ($10). The city must still certify $100 for its levy in order to realize the full $100 from the combination of taxpayer payments and the reimbursement. The 2003 legislature balanced a major state deficit by cutting state aids and credits to cities. Under the cuts, some cities that receive little or no Local Government Aid experienced a reduction in the MVHC reimbursement. The 2005 legislature extended the MVHC reimbursement cuts for 103 cities for 2005 and 2006. The funding for the city portion of the MVHC reimbursement was reduced from approximately $82 million to $65 million for Revised August 2008 55 these years. While property owners continued to receive the benefit of the full credit, cities were not reimbursed for the full amount of those credits. These cities therefore did not collect their total certified levy amount. In other words, for these cities, the gap between the certified levy and what the taxpayers pay was not filled completely (or at all). The MVHC reimbursements were restored for taxes payable in 2007. Cities receive their market value credit reimbursement in two installments from the state, in October and in December. Information on the amount of each city's credit is usually available in late summer each year. MVHC and Tax Increment Financing (TIF) districts TIF districts are eligible for the market value credit when a property receiving the credit is located within the TIF district. The portion of the credit allocated to the TIF district is based on the percentage of the parcel's value that is captured in the TIF district. The market value credits for a TIF district are sent to the city in each December. Cities with TIF districts can determine the amount of the market value credit the districts will receive by consulting the Department of Revenue. Agricultural Market Value Credit The 2001 legislature also created the Agricultural Market Value Credit program, which reduces the property tax of agricultural homestead property up to $345, based upon a percentage of market value. This credit program, like the MVHC, results in a portion of the city's certified levy paid by the state instead of local taxpayers. Most cities receive very little, if any, of this. credit reimbursement. Section 4 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 26 single - family residential properties that sold in 2009 that had also sold within the prior 4 years. Sale prices were adjusted for cash equivalency. Properties with improvements made from 2005 to 2009 were excluded from this analysis. There were three properties that sold a total of three times within the four year period. Summary of Sales Year Sold . Year %: Resold Number of Sales Aggregate Percent Change— . Average Annual Change Median Annual Change 2005 2009 7 -4.7 -1.6 -0.3 2006 2009 5 7.1 1.8 1.0 2007 2009 12 -2.8 -1.8 -0.2 2008 2009 5 0.5 0.0 2.5 Sixteen sales indicated a decrease over the four year period. The average annual decrease was 4.1 percent and the median annual decrease was 4.1 percent. These sixteen repeat sales represent 62 percent of the total repeat sales. The following page includes the sales used in this analysis. The percent change column represents average annual rates based on elapsed months between sales. 56 Report Name: Multiple Sales Analysis Current Sale Year: 2009 Sales Data Period: 01/2005 - 12/2009 User Name: BWILSON (2) PID Address 04- 116 -21 -31 -0045 18- 028 -24 -12 -0058 18- 028 -24 -14 -0066 18- 028 -24 -14 -0114 18- 028 -24 -23 -0007 19- 028 -24 -21 -0043 19- 028 -24 -42 -0052 19- 028 -24 -44 -0040 20- 028 -24 -23 -0046 20- 028 -24 -24 -0041 20- 028 -24 -31 -0120 28- 117 -21 -21 -0033 28- 117 -21 -23 -0114 28- 117 -21 -24 -0091 28- 117 -21 -32 -0133 30- 028 -24 -21 -0032 30- 028 -24 -33 -0096 30- 028 -24 -34 -0076 30- 028 -24 -44 -0043 31- 028 -24 -21 -0036 31-117-21-21-0030 32-117-21-13-0047 32- 117 -21 -13 -0068 32- 117 -21 -31 -0033 33- 117 -21 -31 -0086 33- 117 -21 -32 -0018 5000 Nob Hill Dr 4505 Bruce Ave 4832 Townes Rd 3913 48th St W 4816 Woodhill Way 4601 Oak Dr 5800 Kellogg Ave 6009 Halifax Ave 5728 Drew Ave S 5733 Zenith Ave S 5916 Zenith Ave S 5010 Moore Ave 4525 Vandervork Ave 5117 48th St W 5129 Bedford Ave 6201 St Johns Ave 6817 Normandale Rd 6912 Creston Rd 6908 Dawson La 4517 Belvidere La 5500 Parkwood La 5708 Hawkes Ter 5636 Johnson Dr 5825 Grove St 5905 Josephine Ave 5200 60th St W -Sale Year 2005 - Mo Price Pct 7 870,000 -0.31 6 599,900 1.23 5 348,100 -0.26 6 299,900 -5.77 5 375,500 -2.96 11 410,000 -4.27 7 432,000 0.80 City of Edina Multiple Sales Analysis Multiple Sales Analysis -Sale Year 2006 - Mo Price Pct 1 4 9 9 11 380,000 7.70 385,000 1.04 299,900 -2.34 255,000 2.99 310,000 -0.39 57 -Sale Year 2007- - Mo Price Pct 9 525,000 -0.35 8 814,000 2.90 7 679,888 -4.07 3 435,000 -9.35 4 210,000 6.15 5 354,500 0.72 6 384,000 -7.20 9 410,000 0.59 8 2,800,000 -9.11 9 339,000 -8.63 6 386,000 -0.11 278,000 6.65 - -Sale Year 2008 - Mo Price Pct 7 699,900 2.46 7 525,000 3.20 1 243,500 -4.07 9 350,000 4.68 6 360,000 -6.39 Printed: 03/22/2010 Page: 1 -Year 2009 - Mo Price 8 521,525 7 859,250 9 620,000 7 630,000 9 720,000 10 546,000 4 350,250 6 480,000 4 344,500 12 399,750 6 238,000 7 280,000 12 279,748 8 227,810 12 306,300 5 359,600 5 331,000 11 340,000 8 365,000 10 415,070 4 2,375,000 1 300,000 10 385,000 4 445,000 11 315,000 9 331,250 e 'J 'J MA Twin Cities Housing Affordability Index 202 158 145 137 131 135 2004 2005 2006 2007 2008 2009 2009 saw another new record for housing affordability. Mortgage rates continued to scrape historic lows, housing prices remained soft, and more sales took place in the affordable price segments due to the first -time home buyer tax credit and increased lender - mediated sales. This is the positive side to falling prices. While they undeniably hurt homeowners and have a negative impact on the economy, soft home prices have improved the accessibility and long -term stability ofthe housing market. Average Square Footage of Closed Sales 1,929 1,846 1,861 1,883 2004 2005 2006 2007 1,910 1,881 2008 2009 Top 5 Areas Bottom 5 Areas 605 - Sunfish Lake 7,950 741 - SP- Downtown Stp/Capital Hg 1,1 D3 381 - Lake Minnetonka 2.868 303 - MPLS - Longfellow 1,284 368 - Hennepin- Northwest 2.850 742 - SP- Central 1,312 398 - Victoria 2,634 302 - MPLS - Central 1,335 396 - Chanhassen 2,623 301 - MPLS - Camden 1,345 For the second year in a row, the average square footage of closed sales actually declined slightly. This is likely due to an increase in the number of sales taking place in the more affordable price ranges, which are typically a smaller square footage than traditional homes. Additionally, new construction is down, and newer homes tend to have more square footage. 58 22 Minneapolis Area Association of REALTORSs Total Dollar Volume (in millions) $15,601 $1a,soo $13,337 $11,006 $9,177 $9,013 2004 2005 2006 2007 2008 2009 Top 5 Araas Bottom 5 Areas 805 - Western W,soons,n 5485.3 605 - Sunfish Lake $0.8 381 - Lake Minnetonka 5359.6 628 - Southern Dakota County $34 365 - Maple Gr e/Dsseo 5273.4 618 - Eastern Dakota County $3.7 385 - Edina $272.2 307 - MPLS - Phillips $109 341 - Wright County (Eat Buffalo $271.8 370 - Sibley County $11.2 Finally leveling off after three years of decline, total dollar volume was boosted by the increased number of transactions. The large jump in sales offset the continued decline in prices to keep volume relatively steady. In a related trend, 2009 was the year that MAAR's membership numbers leveled off as well. Price Per Square Foot of Closed Sales $141 $149 $149 $142 $121 $105 2004 2005 2006 2007 2008 2009 Top 5 Areas Bottom 5 Areas 302 - MPLS - Central 5225 305 - MPLS - North $36 300 - MPLS - Calhoun-Isles 51 B6 301 - MPLS -Camden $51 741 - SP- Downtown Sto /Capital Hg $178 742 - SP- Central $52 385 - Edina $171 370 - Sibley County $61 381 - Lake Minnetonka $167 363 - BrookNn Center $62 The Price Per Square Foot (PPSF) of area home sales declined again in 2oo9 and at a slightly higher rate than the overall decline in median price. Since PPSF accounts for home size in its calculation of value, one could view the larger decline as a more realistic indicator of the changing market than our annual median sales price comparisons. gU1LICfQGC52OO9 HOUSING MARKET ANALYSIS Percent of Orig. List Price Received at Sale 98.6% 96.8% 94.7% 91.8% 92.7% 2004 2005 2006 2007 2008 2009 Top 5 Ana. Bottom 5 Area. 302 - MPLS . Cemrai $225 305 - MPLS . North $36 30' - MPLS - Calhoun -Isles $186 301 - MPLS - Camden $51 14 1 - SP- DOwnlown Sp/Capital Hg $178 742 - SP- Central $52 385 - Edina $171 370 - Sibley County $61 381 - Lake Minnetonka $167 363 - Brooklyn Center $62 Sellers began to inch slightly closer to their original asking prices in 2009. While this positive trend took place mostly across the board, things especially improved in the lower price ranges and with foreclosures. Because the tax credit spurred buyers in those segments, heavy demand often meant multiple offer situations. Share of Sales That Were New Construction 14,1% 14.3% 12.2 °k 12.3 9.1 6.8% 2004 2005 2006 2007 2008 2009 Top 5 Anas Bottom 5 Areas 618 - Eastern Dakota County 1000% 302 - MPLS - Central 10% 628 - Southern Dakota County 100.0 % 741 - SP- Downtown Stp /Capital Hg 2.2% 605 - Sunfish Lake 100.0% 300 - MPLS Calhoun -Isles 440% 713 Bethel 1000% 740 - SP- Crocus Hill 466% 710 - Northeast Anoka County 989% 614 - Apple Valley 48j3% 2009 was another slow year for home builders in the Twin Cities. The large -scale builder pullback continued and inventory absorption became the order of the day. Builders are wisely waiting out the current environment and waiting to return when market fundamentals are more attractive. for the 13- county Twin Cities metropolitan area M Share of Sales That Were Lender- Mediated 43.0% 31.7% 10.4% 3.6% 2004 2005 2006 2007 2008 2009 Top 5 Anas Bottom 5 Areas 302 MPLS - C-Inal 344% 744 - SP -Como 0.0% 741 . SP- Downtown StplCapital Hg 33 1% 748 - SP -Town & Country/Memam 0.0% 310 - MPLS - Universdy, 274% 618 - Eastern Dakota County 0.0% 398 - Via.- 250% 378 - Richfield 0.0% 705 - Lino Lakes /Hugo /Centenill 23 3% 628. Southern Dakota County 0.0% Historical levels of lender- mediated activity are taking place in the Twin Cities housing market. Thankfully, the share of sales that are lender- mediated is exceeding the share of new listings, which has brought the lender- mediated inventory down dramatically since the start of 2009. Share of Home Sales That Were Single - Family Detached 79.4% 79.5% 73.6% 71 -3% 7 71.8% 0.2% 2004 2005 2006 2007 2008 2009 Top 5 Areas Bottom 5 Areas 618 - Eastern Dakota County 100.0% 302 - MPLS - Central 1.0% 628 - Southern Dakota County 100.0% 741 - SP- Downtown Slp/Capitai Hg 2.2%, 605 - Sunfish Lake 11:10.0% 300 - MPLS - Calhoun -Isles 44.0% 713 - Bethel 100.0% 740 - SP- Crocus Hill 46.8% 710 - Northeast Anoka County 98.9% 614 - Aoole Vallev 48.3% Foreclosures and short sales are more likely to be single - family detached homes than they are townhouses or condos. The increased market share of these lender- mediated homes meant that the overall market share of single - family detached homes grew again in 2009. A pullback on new construction condo inventory in recent years has also played a factor. www.mplsrealtor.com 23 unit sales data 2009 TWIN CITIES HOM E SALES includes single-family detached homes, condominiums, townhomes and twin homes 300 Mpls - Calhoun -Isles 443 88 19.9% 411 92.8% 32 7,2% 195 44.0% 248 5&0% 301 Mpls - Camden 912 610 66.9% 904 99.1% 8 0,9% 897 98.4% 15 1 6% 302 Mpls - Central 587 104 17.7% 385 65.6% 202 34.4% 6 1.0% 581 99.0% 303 Mpls - Longfellow 386 124 32.1% 384 99.5% 2 0 5% 375 97.2% 11 28% 304 Mpls- Nokomis 843 236 28.0% 837 99.3% 6 0.7% 800 94.9% 43 51% 305 Mpls - North 663 514 77.5 % 645 97.3% 18 2.7% 653 98.5% 10 1,5% 306 Mpls - Northeast 538 211 39.2% 525 97.6% 13 2.4% 502 93.3% 36 6.7% 307 Mpls - Phillips 131 90 68.7% 116 88.5% 15 11.5% 88 67.2% 43 32.8% 308 Mpis - Powderhom 545 313 57.4% 543 99.6% 2 0.4% 490 89.9% 55 10.1% 309 Mpls - Southwest 721 132 18.3% 715 99.2% 6 0.8% 665 92.2% 56 7.8 % 310 Mpls - University 135 52 38.5% 98 72.6% 37 274% 71 52.6% 64 47.4% 340 Buffalo 278 170 61.2% I 259 93.2% 19 68% 226 81.3% 52 187% 341 Wright County (except Buffalo) 1,603 916 57.1% 1,328 82.8% 275 17.2% 1,275 79.5% 328 20.5% 342 Hutchinson 211 68 32.2% 204 96.7% 7 3.3% 191 90.5% 20 9.5% 343 McLeod County 178 97 54.5% 173 97.2% 5 2.8% 167 93.8% 11 6.2% 360 Robbinsdale 261 98 37.5% 252 96.6% 9 14% ! 239 91.6% 22 8A% 361 Crystal 382 161 42.1% 375 98.2% 7 1.8% 367 96.1% 15 3.9% 362 New Hope 225 103 45.8% 222 98.7% 3 1.3% 167 74.2% 58 25.8% 363 Brooklyn Center 675 457 67.7% 673 99.7% ' 2 0.3% 596 88.3% 79 11.7% 364 Brooklyn Park 1,531 1,006 65.7% 1,457 95.2% 74 4.8% 1,182 77.2% 349 22.8% 365 Maple Grove /Osseo 1,019 292 281% 864 84.8% 155 15.2% 653 64.11% 366 35.9% 366 Champlin 324 167 51.5% 313 96.6% 11 3.4% 275 84.9% 49 15.1% 367 Hennepin -North 184 99 53.8% 154 83.7% 30 16.3% 154 83.7% I 30 16.3% 368 Hennepin- Northwest 186 84 45.2% 168 90.3% 18 9.7% 155 83.3% 31 16.7% 370 Sibley County 121 60 49.6% 119 98.3% 2 1.7% 118 97.5% 3 2.5% 373 Golden Valley 255 73 28.6% 253 99.2% 2 0.8% 215 84.3% ( 40 15.7% 374 Plymouth 839 174 20.7% 756 90.1% 83 9.9% 492 58.6% 347 41.4% 378 Richfield 553 214 38.7% 553 100.0% 0 0.0% 512 92.6% 41 7.4% 379 Bloomington -East 355 146 41.1% 338 95.2% 17 48% 289 81.4% 66 18.6% 380 Bloomington -West 544 145 26.7% 542 99.6% 2 04% 378 69.5% 166 30.5% 361 Lake Minnetonka 702 229 32.6% 639 91.0% 63 9,0% 599 85.3% 103 14.7% 385 Edina 647 78 12.1% 615 95.1% 32 4.9% 416 64.3% 231 35.7% 386 Hopkins 196 85 43.4% 192 98.0% 4 2.0% 95 48.5% 101 51.5% 387 Minnetonka 634 190 30.0% 614 96.8% 20 3.2% 410 64.7% 224 35.3 391 Saint Louis Park 670 117 17.5% 649 96.9% 21 3.1% 505 75.4% 165 24.6% 392 Eden Prairie 772 197 25.5% 739 95.7% 33 4.3% 1 4D9 53.0% 363 47.0% 394 Carver County 406 146 36.0% 359 88.4% 47 11.6% 333 82.0% 73 18.0% 396 Chanhassen 314 74 23.6% 267 85.0% 47 15.0% 213 67.8% 101 32.2% 397 Chaska 307 113 36.8% 264 86.0% 43 14.0% 183 59.6% 124 40.4% 398 Victoria 92 17 18.5% 69 75.0% 23 25.0% 78 84.8% 14 15.2% 600 West St. Paul 257 115 44.7% 255 99.2% 2 0.8% 201 78.2% 56 21.8% 602 South St. Paul 323 181 56.0% 317 98.1% 6 1.9% 295 91.3% 28 8.7% 604 Mendota /Lilydale /Mendota Heights 136 26 19.1% 127 93.4% 9 6.6% 73 53.7% 63 46.3% 605 Sunfish Lake 1 1 100.0% 1 100.0% 0 0.0% 1 100.0% 0 0.0% 608 Inver Grove Heights 296 130 43.9% 285 96.3% 11 3.7% 152 51.4% 144 48.6% 610 Eagan 740 276 37.3% 726 98.1% 14 1.9% 400 54.1% 340 45.9% 612 Burnsville 680 279 41.0% 662 97.4% 16 2.6% 379 55.7% 301 44.3% 614 Apple Valley 777 311 40.0% 754 97.0% 23 3.0% 375 48.3% 402 51.7% 616 Rosemount 348 127 36.5% 285 81.9% 63 18.1% 219 62.9% 129 37.1% 617 Hastings 298 136 45.6% 282 94.6% 16 5.4% 189 63.4% 1 D9 36.6% 618 Eastern Dakota County 17 6 35.3% 17 100.0%! 0 0.0% 17 100.0% 0 0.0% 624 Farmington 467 211 45.2% 413 88.4% 54 11.6% 342 73.2% 125 26.8% 626 Lakeville 677 256 38.1% 597 88.2% 80 11.8% 495 73.1% 182 26.9% 628 Southern Dakota County 18 7 38.9% 18 100.0% 0 0.0% 18 100.0% 0 0.0% 630 Northfield 262 88 33.6% 222 84.7% 40 15.3% 176 67.2% 86 32.8% 632 Rice County 404 176 43.6% 365 90.3% 39 9.7% 367 90.8% 37 9.2% 640 Shakopee 705 345 48.9% 574 81.4% 131 18.6% 397 56.3% 308 43.7% 642 Prior Lake 469 186 39.7% 397 84.6% i 72 15.4% 339 72.3% 130 27.7% 644 Savage 419 157 37.5% 379 90.5% 40 9.5% 275 65.6% 144 34.4% 646 Jordan 81 48 59.3% 72 88.9% 9 111A% 76 93.8% 5 6.2% 648 New Prague 372 195 52.4% 316 84.9% 56 15.1% l 324 87.1% 48 12.9% 650 Belle Plaine 130 79 60.8% 116 89.2% 14 10.8% 124 95.4% 6 4.6% 658 Le Sueur /Rice 183 81 44.3% 180 98.4% 3 1.6% 165 90.2% 18 9.8% 24 Minneapolis Area Association of REALTORS' 60 unit sales data � 2009 iws N CITIES Hortn E Sales includes single-family detached homes, condominiums, townhomes and twin homes MLS r,Y Totalr Lender i5r Previously 'r New r b rY Srrigle Code: r,` =Area .r- r 4' rt.� ', Sales' Mediated Percent. Owned „Percent 'Construction , Pe'rdent, „ Detz 660 Goodhue County 358 85 23.7% 342 95.5% 16 4.5% 312 87.2% 46 12.8% 702 Falcon Heights /Lauderdale /Roseville 350 72 20.6% 340 97.1% 10 2.9% 283 80.9% 67 19.1% 705 Lino Lakes /Hugo /Centerville 502 199 39.6% 385 76.7% 117 23.3% 290 57.8% 212 42.2% 706 North Central Suburban 262 91 34.7% 254 96.9% 8 3.1% ' 149 56.9% 113 43.1% 707 Ham Lake 156 94 60.3% 147 94.2% 9 5.8% 152 97.4% 4 2.6% 708 White Bear Area 515 187 36.3% 504 97.9% 11 2.1% 406 78.8% 109 21.2% 709 Forest Lake Area 364 207 56.9% 346 95.1% 18 4.9% 249 68.4% 115 31.6% 710 Northeast Anoka County 93 38 40.9% 86 92.5% 7 7.5% 92 98.9% 1 1.1% 711 Southern Chisago County 438 261 59.16% 407 92.9% 31 7.1% 406 92.7% 32 7.3% 712 Maplewood /North St. Paul 594 255 42.9 %' 573 96.5% 21 3.5% 473 79.6% 121 20.4% 713 Bethel 161 112 69.6% 156 96.9% 5 3.1% 161 100.0% 0 0.0% 714 SP - Phalan 575 358 62.3% 565 98.3% 10 1.7% 556 96.7% 19 3.3 716 SP- Hillcrest/Hazel Park/Daytons Bluff 977 583 59.7% 972 99.5 % 5 0.5% 962 98.5% 15 1.5% 720 SP - Southeast St. Paul 142 73 51.4% 141 99.3% 1 0.7% 127 89.4% 15 10.6% 721 Lakeland /Afton /Denmark 74 35 47.3% 73 98.6% 1 1.4% 72 97.3% 2 2.7% 722 NewporUSt. Paul Park /Cottage Grove 620 335 54.0% 570 91.9% 50 8.1% 517 83.4% 103 16.6% 725 Pine Springs /Lake Elmo /Oakdale 423 189 44.7% 404 95.5% 19 4.5% 251 59.3% 172 40.7% 726 Woodbury 995 313 31.5% 848 85.2% 147 14.8% 572 57.5% 423 42.5% 727 Stillwater /Bayport 492 162 32.9% 425 86.4% 67 13.6% 379 77.0% 113 23.0% 728 SP - Riverview /Cherokee 212 112 52.8% 208 98.1% 4 1.9% 197 92.9% 15 7.1% 738 SP - Home Croft/W 7th 111 52 46.8% 111 100.0% 0 0.0% 106 95.5% 5 4.5% 740 SP - Crocus Hill 191 60 31.4% 189 99.0% 2 1.0% 89 46.6% 102 53.4% 741 SP - Downtown /Capital Heights 136 33 24.3% 91 66.9% 45 33.1% 3 2.2% 133 97.8% 742 SP - Central 478 324 67.8% 472 98.7% 6 1.3% 462 96.7% 16 3.3% 744 SP - Como 231 60 26.0% 231 100.0% 0 0.0% 224 97.0% 7 3.0% 746 SP - St. Anthony /Midway 225 70 31.1% 219 97.3% 6 2.7% 206. 91.6% 19 8.4% 748 SP - Town & Country/Merriam Park 117 32 27.4% 117 100.0% 0 0.0% 114 97.4% 3 2.6% 750 SP - Mac/Groveland /River Road Area 244 26 10.7% 242 99.2% 2 0.8% 212 86.9% 32 13.1% 752 SP - Highland Area 260 55 21.2% 252 96.9% 8 3.1% 218 83.8% 42 16.2% 754 Big Lake Township 375 281 74.91% 339 90.4% 36 9.6% 360 96.0% 15 4.0% 756 Elk River 381 257 67.5% 344 90.3% 37 9.7% 296 77.7% 85 22.3% 758 Northwestern Anoka County 306 199 65.0% 277 90.5% 29 9.5% 257 84.0% 49 16.0% 760 Ramsey 366 211 57.7% 318 86.9% 48 13.1% 249 68.0% 117 32.0% 762 Andover 416 200 48.1% 368 88.5% 48 11.5% 367 88.2% 49 11.8% 764 Blaine 884 387 43.8% 732 82.8% 152 17i2% 614 69.5% 270 30.5% 765 Arden Hills /Shoreview 374 87 23.3% 366 97.9% 8 2.1% 228 61.0% 146 39.0% 766 Moundsvw /New Brightn /St. Anthny Vilg 372 110 29.6% 345 92.7% 27 7.3% 283 76.1% 89 23.9 767 Coon Rapids 873 499 57.2% 855 97.9% 18 2.1% 586 67.1% 287 32.9 768 Fridley 300 146 48.7% 296 98.7% 4 1.3% 252 84.0% 48 16.0% 769 Anoka 229 135 59.0% 219 95.6% 10 4.4% 187 81.7% 42 18.3% 770 Hilltop /Columbia Heights 328 182 55.5% 308 93.9% 20 6.1°/ 288 87.8% 40 12.2% 771 Spring Lake Park 85 49 57.6% 84 98.8% 1 1.2% 70 82.4% 15 17.6% 772 Lexington /Circle Pines 94 47 50.0% 94 100.0% 0 0.0% 65 69.1% 29 30.9% 780 Sherburne County 560 376 67.1% 523 93.4% 37 6.6% 529 94.5% 31 5.5% 782 Isanti / Chisago 454 319 70.3% 426 93.8% 28 62% 398 87.7% 56 12.3% 783 Cambridge 119 75 63.0% 112 94.1% 7 5.9% 100 84.0% 19 16.0% 784 Northern Chisago County 112 75 67.0% 108 96.4% 4 3.6% 106 94.6% 6 5.4% 801 Southeast Wisconsin N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 802 Southern Wisconsin 9 1 11.1% 9 100.0% 0 0.0% 8 88.9% 1 11.1% 803 Eastern Wisconsin 2 1 50.0% 2 100.0% 0 0.0% 2 100.0% 0 0.0% 804 Central Wisconsin 13 2 15.4% 13 100.0% 0 0.0% 13 100.0% 0 0.0% 805 Western Wisconsin 3,054 871 28.5% 2,875 94.1% 179 5.9% 2.830 92.7% 224 7.3% 811 Northeast Minnesota 839 205 24.4% 816 97.3% 23 2.7% 814 97.0% 25 3.0% 812 Northern Minnesota 152 11 7.2% 148 97.4% 4 2.6% 150 98.7% 2 1.3% 813 Northwest Minnesota 52 6 11'.5% 51 98.1 % 1 1.9% 49 94.2% 3 5.8% 814 West Central Minnesota 824 192 23.3% 789 95.8% 35 4.2% 788 95.6% 36 4.4% 815 Southern Minnesota 1,188 235 19.8% 1.146 96.5% 42 3.5% 1,130 95.1% 58 4.9% 816 Southeast Minnesota 676 118 17.5% 649 ..96.0% 27 4.0% 632 93.5% 44 6.5% 817 Central Minnesota 1,545 553 35.8% 1,479 95.7% 66 4.3% 1,473 95.3% 72 4.7% 840 North Dakota 115 2 1.7% 108 93.9% 7 .6.1% 90 78.3% 25 21.7% 850 South Dakota 1 1 100.0% 1 100.0% 0 0.0% 1 100.0% 0 0.0 851 Western Iowa N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 861 Eastern Iowa 8 3 37.5% 8 100.0% 0 0.0% 8 100.0% 1 0 0.0% 61 www.mplsrealtorxom 25 pY1LZ data ZOO9TWIN CITIES HOME SALES includes single-family detached homes, condominiums, townhomes and twin homes 300 Mpis - Calhoun -Isles $230,000 $344,713 1 155 91.4% 1,713 $186 301 j Mpls - Camden $51,900 $68,324 106 95.5% 1,345 $51 302 Mpls - Central $246,750 $324.897 123 93.8% 1,335 $225 303 Mpls - Longfellow $171,500 $169,692 84 95.8% 1,284 $134 304 Mpls - Nokomis $189,900 $194,210 86 958% 1.481 $133 305 Mpls - North $38,500 I $54,598 108 967% 1,541 $36 306 I Mpis - Northeast $151,000 $147,361 110 94.3% 1,450 $105 307 Mpls - Phillips $89,050 $92,495 165 91.9% 1,443 $67 308 Mpls - Powderhorn $110,000 $115,203 124 94.7% 1,488 $82 309 Mpls - Southwest $260.000 $295,453 103 94.3% 1,756 $165 310 Mpis - University $195,000 $196,796 174 91.4% 1,426 $141 340 Buffalo $145,000 $156,806 131 93.0% 1,891 $84 341 Wright County (except Buffalo) $156,000 $171,069 149 92.1% 1,872 $94 342 Hutchinson $124,950 $140,900 152 90.0% 1,908 $74 343 McLeod County $99,000 $105,351 189 87.3% 1,675 $64 360 Robbinsdale $148,750 $143,048 141 91.9% 1,529 $94 361 Crystal $142,000 $139,563 116 933% 1,583 $90 362 New Hope $158,000 $160,952 128 92.5% 1,779 $91 363 Brooklyn Center $90,00D $96,721 140 94.5% 1,608 $62 364 Brooklyn Park $135,000 $148,894 136 94.4% 1,897 $76 365 Maple Grove /Osseo $219,348 $268,567 123 ! 93.4% 2,266 $115 366 Champlin $162,000 $176,469 114 93.3% 1.904 $93 367 Hennepin -North $224,950 $230.567 164 915% 2,360 $99 368 Hennepin- Northwest $255,000 $369,723 177 90.9% 2.850 $122 370 Sibley County $88,888 $97,995 154 89.5% 1,622 $61 373 Golden Valley $220,000 $250,651 146 92.8% 2,089 $120 374 Plymouth $253,500 $291,859 134 92.1% 2,302 $125 378 Richfield $165.000 $159.558 113 93.5% 1,598 $102 379 Bloomington -East $157,625 $160,556 114 94.1% 1,506 $112 380 Bloomington -West $210,000 $227.806 140 92.5% 1,999 $114 381 Lake Minnetonka $339,500 $512,214 204 88.6% 2,868 $167 385 Edina $324,950 $418,853 148 91.3% 2.282 $171 386 Hopkins $164,900 $176,549 133 90.8% 1,513 $109 387 Minnetonka $242,000 $284,113 153 91.8% 2,254 $124 391 Saint Louis Park $212,500 $230.169 118 93.1% 1,583 $145 392 Eden Prairie $251,750 $308,152 153 92.1% 2,445 $123 394 Carver County $186,000 $204,675 147 91.8% 2,007 $102 396 i Chanhassen $280,000 $354,811 141 90.9% 2,623 $130 397 Chaska $178.500 $218.111 125 92.8% 2.018 $106 398 Victoria $326,950 $336,167 157 92.5% 2,634 $126 600 West St. Paul $134,900 $136.862 120 92.7% 1,486 $93 602 South St. Paul $132,000 $130,482 127 92.3% 1,532 $88 604 Mendota /Lilydale /Mendota Heights $260,000 $291,988 188 89.4% 2,364 $126 605 Sunfish Lake $830,000 $830,000 455 83.0% 7,950 $104 608 Inver Grove Heights $165,751 $209,498 179 91.4% 1,967 $103 610 Eagan $183,000 $205,601 135 93.0 % 1.968 $103 612 Burnsville $175,000 $186,602 140 92.7% 1,987 $92 614 Apple Valley $171,000 $194,392 135 918% 1.963 $98 616 Rosemount $194,000 $223,461 118 94.4% 2,096 $106 617 Hastings $150,000 $169,912 145 91.0% 1,839 $93 618 Eastern Dakota County $240,000 $218,162 187 89.3% 2,255 $101 624 Farmington $175,000 $181,359 143 931% 1,914 $95 626 Lakeville $224,188 $240.822 143 93.5% 2,295 $105 628 Southern Dakota County $169,700 $191,560 214 87.9% 2,114 $93 630 Northfield $171,425 $186,143 187 90.7% 1,979 $96 632 Rice County $140,000 $148,469 150 90.6 % 1,789 $84 640 1 Shakopee $175,000 $195,077 129 93.8% 1,950 $100 642 Prior Lake $240.000 $283,444 168 91 8% 2,494 $112 644 Savage $212,000 $225,757 148 93.1% 2,241 $100 646 Jordan $202,000 $207.830 190 93.4% 2,211 $94 648 New Prague $198,000 $213,642 141 91.6% 2,219 $98 650 Belle Plaine $15D,500 $154,258 155 94.3% 1,755 $92 658 i Le Sueur /Rice 1 $110,000 1 $119,578 199 84.6% 1,724 $68 26 Minneapolis Area Association of REALTORS* 62 price data � 2009 Twn N CITIES Horn e SALES includes single-family detached homes, condominiums, townhomes and twin homes 660 Goodhue County $146,000 I $160,587 171 89.9% 1,808 $88 702 Falcon Heights /Lauderdale /Roseville $201,900 $220,527 116 92.5% 1,803 $122 I 705 Lino Lakes /Hugo /Centerville $180,400 $213,661 140 93-4% 2,053 $103 706 North Central Suburban $190,500 $246,501 169 i 88.8% 2,112 $108 707 Ham Lake $236,000 $247,451 176 90.3% 2,549 $98 708 White Bear Area $180,000 $216,516 163 90.8% 1.928 $112 709 Forest Lake Area $154,500 $173,169 158 90.8% 1,934 $91 710 Northeast Anoka County $198,000 $212,698 158 90.9% 1,960 $111 711 Southern Chisago County $154,836 $164,950 182 90.0% 1,822 $93 712 Maplewood /North St. Paul $160,000 $167,764 142 92.4% 1,790 $96 713 Bethel $152,500 $165,497 181 89.9% 1,855 $91 714 SP - Phalen $85,000 $90.712 137 92.1% 1,434 $63 716 SP - Hillcrest/Hazel Park/Daylons Bluff $94,250 $94,526 123 93.6% 1,389 $69 720 SP - Southeast St. Paul $149,475 $147,415 143 93.3% 1,702 $87 721 Lakeland /Afton /Denmark $237,800 $271,328 205 87.0% 2,380 $115 722 Newport/St Paul Park /Cottage Grove $168,150 $183,978 125 94.1% 1,956 $95 725 Pine Springs /Lake Elmo /Oakdale $167,100 $189,708 130 92.4% 1,864 $99 726 I Woodbury $238,375 $253,063 133 92.5% 2,303 $108 727 Stillwater /Bayport $225,000 $269,660 172 90.4% 2,169 $123 728 SP - Riverview /Cherokee $103,000 $109,070 148 91.3% 1,390 $79 738 SP - Home Croft/W 7th $110,000 $111,794 82 96.4% 1,352 $84 740 SP - Crocus Hill $206,250 $280,092 168 90.2% 1,866 $145 741 SP - Downtown /Capital Heights $176,450 $202,215 161 92.6% 1,103 $178 742 SP - Central $55,000 $67,299 128 90.8% 1,312 $52 744 SP - Como $175,000 $174,573 107 94.3% 1,456 $123 746 SP - St.Anthony /Midway $159,000 $161,306 103 94.0% 1,417 $116 748 I SP - Town & Country/Merriam Park $220,000 $243,951 103 94.4% 1,783 $137 750 SP - Mac/Groveland /River Road Area $243,000 $259,815 116 94.6% 1,538 $166 752 SP - Highland Area $222,025 $242.873 104 91.9% 1,607 $152 754 I Big Lake Township $139,900 $149,658 148 93.0% 1,768 $88 756 Elk River $160,000 $167,146 152 91.5% 2,032 $82 758 Northwestern Anoka County $159,000 $173,140 176 91.7% 1,938 $92 760 Ramsey $154,000 $168,262 136 93.0% 1,954 $87 762 Andover $205,000 $220,323 162 92.7% 2,315 $98 764 Blaine $169,900 $196,487 126 94.1% 2,003 $98 765 Arden Hills /Shoreview $209,900 $240,226 147 90.9% 1,983 $118 766 i Moundsvw /New Brightn /St. Anthny Vilg $186,000 $194,167 135 92.6% 1,797 $109 767 Coon Rapids $137,250 $141,241 132 93.0% 1,686 $84 768 Fridley $139,500 $144,387 136 91.8% 1,662 $89 769 Anoka $130,000 $134,506 131 92.1% 1,656 $83 770 Hilltop /Columbia Heights $122.500 $125,161 137 90.8% 1,536 $82 771 Spring Lake Park $139,000 $144,888 111 93.0% 1,668 $88 772 Lexington /Circle Pines $150,000 $155,538 134 93.0% 1,637 $96 780 Sherburne County $144.250 $157,333 163 92.4% 1,883 S86 782 Isanti / Chisago $124,900 $135,056 174 89.3% 1,636 $85 783 Cambridge $115,000 $119,053 159 89.5% 1,561 $80 784 Northern Chisago County $129,950 $134,462 175 88.2% 1,696 $82 i 801 Southeast Wisconsin N/A NIA N/A N/A N/A N/A 802 Southern Wisconsin $97,500 $113,300 125 83.9% 2,135 $54 803 Eastern Wisconsin $98,700 $98,700 130 85.3% 2,094 $49 804 Central Wisconsin $63,750 $93,950 111 85.9% 1,627 $55 805 Western Wisconsin $139,900 $160,931 175 89.1% 1,759 1 $93 811 Northeast Minnesota $132,000 $154,919 137 90.3% 1,588 i $99 812 Northern Minnesota $135,250 $155,250 132 903% 1.663 $100 813 Northwest Minnesota $125,900 $141,076 167 88.8% 1,875 $83 814 West Central Minnesota $123,000 $144,994 167 89.4% 1,773 $83 815 Southern Minnesota $125,900 $133,004 140 90.8% 2,085 $70 816 Southeast Minnesota $126,500 $137,952 135 90.8% 2,125 $66 817 Central Minnesota $116,500 $147,745 174 88.2% 1,630 $92 840 North Dakota $140,000 $151,334 82 96.1% 1.916 $80 850 South Dakota $30,000 $30,000 0 62.6% 960 31 851 Western Iowa N/A N/A N/A N/A N/A N/A 861 j Eastern Iowa $69,000 $94,375 1 125 85.5% 1,673 38 63 www.mplsrealtor.com 27 reap 2009 MEDIAN HOME PRICES includes single family detached homes, condominiums, townhomes and twin homes LEGEND - $212,000 and above Claw Two $169,900 — $211,999 ChM?. Lek. shale. 711 Twp $142,001 — $169,899 C nLako $142,000 and below STACY RMLS Boundry p 368 MLS District .71( Airport 782 784 780 ortppk Twp ZIMMERMAN LNWe Twp SWIIord Atha* Two Aao Claw Two Lero Twp ChM?. Lek. shale. 711 Twp ST FRANCIS BETHEL C nLako Be.., ,"p STACY CENTER SHAPER MONTICELLO LINDSTROM OSCEOLA EAST BETHEL 758 W � HISAO Fria -0. BIG LAKE LM 756 713 `� 341 CITY Twp 760 Ber m OAK ..,OMING F.rtninglpn Silver Creek 754 ELK RIVER Twp GROVE C nLako TWP MONTICELLO 710 709 OSCEOLA 341 MOnacb OTSEGO 760 762 F.rtninglpn Map4 Lake Twp RAMSEY Twp Twp Faaal ALBERTVILLE laM TwD C � m BUFFALO BrJhlo Twp BT MICHAEL b'.."NF �� 764 705 SoWet 340 366 COON CHAMPLIN RAPIDS N SPRI RockbrU BROOKLYN P K LEXINGTON 772 SOMERSET MarysOUle TT TWP PARK 77p1 IEW ^OAKS p ROCKFORD 76B N L! Somerset Twp 8O5 WAVERLY V I� RIOL 706 70v MONTROSE L �� 363 B 8110 KLYN 61 "TER 770 766 765 � a�esoao 7T— S Jpsepn Twp DE ° 62 301 —111A W—dlmm Twp Franklin Twp DALE S 702 AN TH ROSEVILLE 1 NORTH 712 - C NORTH 305 308 CON EI GHTS MAPLEWOOD 725 qLE NuosoN' Hudaon Twp J 310 742 714 716 LAKE ELM O WATERTOWN 307 746 NT P LANDFALL HUDSON i 7 POD$ Hokooa w.,e owm Twp v 303 728 386 73' S 304 66N MAYER WEST SAINT TrpYA Tw `NEW GERMANY via— 8 E P - Camean Lakebw WACONIA T"lp 380 379 ' -� aEH SAINT PAUL 722 Twp CM4S +A BLOOM! N EAGAN 608 PARK botl COTTAGE _ Cllhpn 394 397 610 NVER GROVE Island Two chile - �� GROVE HEIGHTS Tw'p NORWOOD TW 640 YOUNG COLOGNE Jaduan SHAKOPEE 617 J Twp Bares CARVER pRESCOTT Am Twp Twp —Me 61 Oak Gran T"0 Twp TINGS HAMBURG - - Washmglon Hancp.A yn phi Sane Creek Twp T-' Lake Two Twp DAN 624 646 _ 370 - FAHMINtiION P �^ ••ws. :rx,' PLAJNE rnNEEV MIEBVILLE YYakir JeeaaNnlC Twp Belle Plalne _ Blar - fleMna C.Ca� -.•.. Ma. T� NEW ? Eureka Twp -.-+ MARKET Hamp,on 1 650 ELKO g TwD. 628 O 648 630 T� '660 HENDERSON F;, �_,olpn CANNON LPH *wp FALLS V- _. Greamaka WalerlprE Twp Tap Scala Twp Two Hanearaon Twp 658 "- 632 S1ft Caman FaM Twp wP LE SUEUR " 28 Min apolis Area Association of REALTORS* 64 map 2009 HOME PRICE PER SQUARE FOOT closing sales price relative to total finished square footage LEGEND - $115 and above $98 —$114 1WP Shafer 711 TWp $87—$97 $86 and below RMLS Boundary STACY 368 MLS District :?( Airport ZIMMERMAN Stanrc d Onk Twp 780 TWP oc wonia Becker Twp Tel, ST FRANCIS Big 758 758 &G LANE Lake TwP B— rG21A�4 782 1 L -784 Athena oxford Ch—go Lake TWIP T� Lem 1WP Shafer 711 TWp Twp 1EL STACY CENTER SHAFER CITY LINDSTROM EAST BETHEI TwP Wyo.. p HCISry O FreTnie ' 71 3 WYOMING Chisapo Lake SICreek 754 ELK RIVER Tap TwP OSCEO TWP MONTICELLO ' 71 709 FOREST Farminglo 341 Monkcallo DTSEGD 760 707 C.I. LAKE TwP RAMSEY Mapb Lake TWP INLE _ Forest LN ALBERTVILLE TwP Bulhb N TwP QAINE U Cnamam 5T MICHAEL Hahn 367 DAYION 7V / Twit wP ROGERS _ { Somerset BUFFgLO 340 T �J�A P 366 COON ! VT LCENTERNLLE 705 TW R..MPLIN RAPIDS HUGO SPRI — LINO LAKES /~ BROKL PAR YN 77 SOMERSET Rockford O T" 9 M TWp�' _..' •.1 - ROCKFORD 364 76a ^� __% • .a Somerse, 805 WAVERLY RIDE • 06 708 MONTROSE NL 363 E d H'C`N S, Joseph KLY 61 NTERN 770 766' 7n DEI:';. 52 381 WoPdaM FrTrns�kl'm N DAIE ;ST. Y ;a 712 s ", H osou' Hopson 305 MAPLEWOOD AfhAF 725 10 TWP LW L 742 714 716 w — WATERTOYI, B NT P LANDFALL HUDSON 2U`ia.. _.....,s.,... Hon�Nrare v`' "T°nPWr' N 308 728 386 726 L WEST f4 WOODBURY Troy SAINT f TwP fdAYER H 1_i: 8 NEW GERMANY Vft— n„ 3' ]( T E'. T TWP I VV 380 379 SAINT 722 C.� w.n PADL . - EAGAN 608 ROK Clifton B'.. Ar.�v: 7r ;y / Grey COTTAGE 394 397 6'10 Chud GROVE Twp Iabnd TwP YOUNG COLOGNE Jackaan v 640 644 BURNSVILLE 61 7 AMERICA TwP SHAKOPEE 1 .1 6 / PRESCCTT Young Benton 61 2 6 14 6 16 4 Oak Grove A Ta V L Twp TWp :� i�ab ;�r�,, o. - F:4STINGS T'A'D HAMBURG H.nwC. Salty C'- 642 618 Wasnmgtun TWy yon F ,' Twp G wco Lake Two T 626 DAN - - 624 , I 646 FARMINGTON. 370 Fa.on S, LTwo wP BELLE - - TON MIESVILLE Welch PLAINE .. -. - � n._.. TwP TWP Ralk Plame Mebna Cedar NEW H T-P Jessanbntl Blakeley T- -' I WD IYke Twp MARKET Eureka Twp Colb R k Twp 628 Twp Twp 650 ELKD Twp D1WP PRAG E 648 630 -- -660 /' R.4.1,h CANNON HENDERSON RAN LPH TwP FALLS i Vasa Lanesourg Wheetbnd Greenvab Warerlortl S..M Twp Tarprae TWF 7, Wehabr T Hand— }wD re „y, >,,e HE IDELBERG TwP TWp Ten � Stardon Cannon FaM TwP 7 T"P Twp LE SUEUR 658 LON ! E 632 „�l__..._,_r NorNMM TWP °'°�"i6 IELD 65 www.mplsrealtor.com 29 historical IMEDIAN SALES PRICE BY AREA includes single-family detached homes, condominiums, townhomes and twin homes 300 1, M Mpis - Calhoun -Isles $ $262,500 $ $260,000 $ $263,500 $ $256,000 $ $240,900 $ $230,000 - -4.5% - 12.4% 301 M Mpis - Camden $ $157,9DO $ $163,800 $ $163,000 $ $129,459 $ $60,0D0 $ $51,900 - -13.5% - -67.1% 30 Minneapolis Area Association of REALTORS® 66 historical' MEDIAN SALES PRICE BY AREA j includes single-family detached homes, condominiums, townhomes and twin homes Code Area Goodhue County 004 $165,125 2005 $169,700 2006 $174,313 it $165,000 ir: $148,000 2009 $146,000 % Change from 2008 1.4% % Change from 2004 11.6% 660 702 Falcon Heights /Lauderdale /Roseville $229,000 $233,000 $246,288 $237,400 $225,000 $201,900 -10.3% - 11.8% 705 Lino Lakes /Hugo /Centerville $250,000 $269,900 $264,950 $250,000 $219,366 $180,400 -17.8% -27.8% 706 North Central Suburban $224,900 $253,000 $260,000 $249,000 $219,950 $190,500 - 13.4% - 15.3% 707 Ham Lake $344,450 $355,000 $345,000 $315,000 $275,000 $236,000 -14.2% - 31.5 % 708 White Bear Area $235,000 $244,900 $245,000 $235,000 $220,000 $180,000 -18.2% - 214 709 Forest Lake Area $246,750 $244,950 $243,543 $237,250 $204,500 $154,500 -24.4% - 37.4% 710 Northeast Anoka County $272,269 $274,500 $279,950 $255,453 $205,000 $198,000 -3.4% -27.3% 711 Southern Chisago County $206,000 $220,000 $211,288 $209,900 $173,500 $154,836 - 10.8% -24.8% 712 Maplewood /North St. Paul $206,000 $220,000 $222,000 $205,897 $185,000 $160,000 -13.5% -22.3% 713 Bethel $229,450 $260,550 $237,000 $214,500 $176,200 $152,500 -13.5% -33.5% 714 SP - Phalen $169.000 $177,900 $175,950 $160,000 $100,000 $85,000 -15.0% -49.7% 716 SP - Hillcrest/Hazel Park/Daytons Bluff $169,000 $179,000 $175,000 $164,800 $98,700 $94,250 -4.5% -44.2% 720 SP - Southeast St. Paul $200,000 $208,450 $217,200 $182,000 $170,000 $149,475 -12.1% -25.3% 721 Lakeland /Afton /Denmark $309,500 $316,350 $325,000 $270,000 $244,000 $237,800 -2.5% -23.2% 722 Newport/St. Paul Park/Cottage Grove $212.340 $222,950 $227,400 $217,050 $189,210 $168,150 11.1% -20.6% 725 Pine Springs /Lake Elmo /Oakdale $219,000 $224,400 $227,500 $228,450 $197.000 $167,100 15.2% -23.7% 726 Woodbury $269,000 $280,659 $282,400 $267,575 $264,000 $238,375 -9.7% -11.4% 727 Stillwater /Bayport $280,000 $289,000 $300,000 $295,000 $285,000 $225,000 -21.1% -19.6% 728 SP - Riverview /Cherokee $168,000 $182,500 $187,000 $179,500 $115,000 $103,000 -10.4% -38.7% 738 SP - Home Croft/W 7th $175,000 $179,450 $181,580 $180,000 $138,750 $110,000 -20.7% -37.1% 740 SP - Crocus Hill $230,000 $250,750 $274,900 $260,450 $227,128 $206,250 -9.2% - 10.3 % 741 SP - Downtown /Capital Heights $151,390 $176,339 $200,170 $189,500 $199.900 $176,450 -11.7% +16.6% 742 SP - Central $150,000 $160,000 $152,750 $131,750 $60,250 $55,000 -8.7% - 63.3% 744 SP - Como $200,000 $219,900 $216,250 $216,000 $195,500 $175,000 -10.5% - 12.5% 746 SP - St. Anthony /Midway $193,640 $195,050 $206,850 $195,400 $175,000 $159,000 -9.1% - 17.9% 748 SP - Town & Country/Merriam Park $255,500 $292,500 $282,500 $265,950 $230,588 $220,000 -4.6% - 13.9% 750 SP - Mac /Groveland /River Road Area $264,000 $280,000 $278,000 $276,000 $266,250 $243,000 -8.7% -8.0% 752 SP - Highland Area $269,950 $275,000 $274,400 $280,000 $249,000 $222,025 -10.8% - 17.8 754 Big Lake Township $188,500 $201,000 $207,850 $195,950 $150,000 $139,900 -6.7% - 25.8 % 756 Elk River $225,541 $233,000 $229,900 $210,000 $187,900 $160,000 -14.6% -29.1% 758 Northwestern Anoka County $236,900 $236,900 $232,000 $220,480 $195,000 $159,000 -18.5% - 32.9% 760 Ramsey $225,898 $226,000 $229,900 $214,750 $186,700 $154,000 -17.5% - 31.8% 762 Andover $254,329 $275,000 $273,500 $265,000 $226,840 $205,000 -9.6% - 19.4 % 764 Blaine $213,700 $226,900 $229,000 $222,350 $194,500 $169,900 -12.6% -20.5% 765 Arden Hills /Shoreview $220,000 $239,900 $242.250 $237.000 $225,000 $209,900 -6.7% - 4.6 766 Moundsvw /New Brightn /St. Anthny Vilg $219,900 $229,900 $225,900 $227,000 $201,000 $186,000 -7.5% - 15.4 % 767 Coon Rapids $196,950 $205,900 $205,900 $190,500 $160,000 $137,250 - 14.2% -30.3% 768 Fridley $196,550 $210,000 $210,000 $194,000 $160,025 $139,500 -12.8% -29.0% 769 Anoka $195,5D0 $203,000 $200,541 $189,500 $160,250 $130,000 -18.9% -33.5% 770 Hilltop /Columbia Heights $180,000 $189,900 $189,900 $179,900 $145,000 $122,500 -15.5% -31.9% 771 Spring Lake Park $190,400 $208,000 $199,850 $195,000 $159,265 $139,000 12.7% -27.0% 772 Lexington /Circle Pines $189,450 $192,000 $191,600 $186,000 $172,600 $150,000 13.1% - 20.8% 780 Sherburne County $197,000 $220,000 $225,000 $207,250 $165,000 $144,250 -12.6% -26.8% 782 Isanti / Chisago $176,900 $189,000 $189,900 $176,000 $147,483 $124,900 -15.3% -29.4% 783 Cambridge $172,633 $180,900 $175,000 $165,000 $135,200 $115,000 -14.9% -33.4% 784 Northern Chisago County $175,200 $202,500 $182,200 $179,000 $149,675 $129,950 -13.2% - 25.8 % 801 Southeast Wisconsin I $0 $206,000 $408,000 $0 $0 $0 N/A N/A 802 Southern Wisconsin $174,997 $103,000 $103,000 $131,000 $128,900 $97,500 -24.4% -44.3% 803 Eastern Wisconsin $145,000 $99,450 $76,649 $121,500 $131,400 $98,700 -24.9% -31.9% 804 Central Wisconsin $163,751 $96,950 $86,000 $96,000 $92,000 $83,750 -9.0% -48.9% 805 Western Wisconsin $170,000 $173,000 $173,900 $165,000 $153,000 $139,900 -8.6% -17.7% 811 Northeast Minnesota $139,950 $147,000 $149,000 $152,400 $145,200 $132,000 -9.1% - 5.7% 812 Northern Minnesota $138,000 $145,373 $150,000 $147,500 $140.000 $135.250 -3.4% - 2.0°/ 813 Northwest Minnesota $124,800 $99,900 $117,000 $117,500 $100,000 $125,900 +25.9% + 0.9% 814 West Central Minnesota $117,000 $135,000 $138,900 $149,450 $131,900 $123,D00 -6.7% + 5.1 % 815 Southern Minnesota $140,950 $147,000 $150,000 $145,000 $134,900 $125,900 -6.7% -10.7% 816 Southeast Minnesota $135,478 $136,700 $142,050 $138,000 $137,013 $126,500 -7.7% - 6.6 % 817 Central Minnesota $149,900 $162,000 $162,100 $156,600 $131,100 $116,500 - 11.1% -22.3% 840 North Dakota $99,950 $123.499 $136,250 $130,000 $125.900 $140,000 + 11.2% +40.1% 850 South Dakota $38,750 $61,250 $340,000 $0 $18,000 $30,000 +66.7% -22.6% 851 WesternI wa N/A N/A N/A N/A N/A N/A N/A N/A 861 Eastern Iowa $0 $199,900 63750.0 $110,000 $114,250 $69,000 -39.6% N/A 67 www.mplsrealtor.com 31 map 2009 SHARE OF SALES THAT ARE LENDER - MEDIATED ' includes single-family detached homes, condominiums, townhomes and twin homes; percentages are reflective of each individual MLS district LEGEND -57.1% and above 43.4% — 57.0% MARINE ON 32.1% — 43.3% 32.0% and below 367 RMLS Boundary °-- 368 MLS District X Airport L"mwood TWP 710 DS` CdumEua NewS.pde Twp MARINE ON 367 ST DRDIK 7 705 May Somerset 366 ENTERVILLE Twp TeP t;nAMPI ,h LINO LAKES HUGO NES 772 727 SOMERSET OSSEO 365 E HOREVIEW wp MAPLE RTN OAKS D D DLSN 1°r SomenIN 805 !:RFFNErci n 36 GROVE 706 7O8 GRANT Two Twp v NT SHORE W w 766 765 H �t ems" wAU RraE St Josep TwD 374 61 STILLWATER PLYMOUTH N 7OY CA N 5 A %_' ORK p HEIGHTS H ANTH ROSEVILLE 712 .Ix V RoRTR •'MAPLIE MEDICINE VALLEY 306 LOOTS MAPLEWOOD ylown� TwP _ HuoSON'- HT�n LO LAKE 381 373 "ba 3o 31 744 WATERTOWN ORONO WAYZATA 300 746 HUDSON Watanown INNETRISTA MOD— SR'wK Ml Mi PARK 391 NN 4 7 7 1-11w oo i wP Twp MOUND HOP ORONo DEEeHAVE 303 760 1O1K'' GREENWOOD 387 �EacEt EN 309 752 726 .- —E ST w._ 5 ONIFACIUS MINNE87 SHOREWOOD EDINA 304 WOODBURY" Troy HAVER 385 4@D Twp NEW GERMANY Warnnu VI OR R HFIE 3'�8 X MENPO.604 FIT ra 721 Twp 398 CHANHASSEN HENiHT6 - Camden WACONIA Lak °'""° Twp 392 396 380 379 722 Twp EDEN p Apt 394 CHASKA PRAIRIE 397 BLOOMIN N EAGAN 08 610 NORWOOD C T YOUNG AMERICA COLOGNE DaNpren TwD 644 BURNSVILLE 6 Y01Pg Bemon CARVER 614 616 PRESC.OTT TwD SAVAGE 612 DaTWP TT.Pw PRIOR APPLE ROSEMOUNT NrTarps HAMBURG LAKE VALLEY {7Y 642 Q COATES 618 TH� San Franusco T" Creda 626 E Wra VERMILLION • - T_ Twp LAKE VILLE TT wP '- Vennilkon Rawmrw wD 370 Twp . ., HAI PTON NEW TRIER MIESVILE WISIch t Twp Eurelu Twp Caatle Rock H T plpn wp 628 TIP Douglas 648 630 Twp 660 RAN PH Rantlplph w'P CANNON Va- GreemaN WBIaHOrd Suota TwD Twp Two T" ..... - .. Staff Canron Falls 658 . 632 Twp Twp ;2 � � ELD 32 Minneapolis Area Association of REALTORS' 68 I map HOME PRICE CHANGES SINCE 2003 includes single-family detached homes, condominiums, townhomes and twin homes LEGEND - -12.5% and above - - 21.1 %to -12.6% -28.6% to -21.2% C- 28.7% and below 784 --»-- RMLS Boundary 78�f vL` 368 MLS District x Airport ZIMMERMAN Stanford At.. Oxford Ch,a T- Lake Twp r T-P Twp Twp LMa 71 1 Twp Q 7 O D od no ha 7 wP V Twp T wo BETHEL STACY CENTER ENT T.p TI^m ST FRANCIS LINDSTROM BECKER 758 EAST BETMEL L--d WT, ^g CITY F Trncurea BIG LAKE L W 756 713 Twp 754 wD ELK RIVER Two WYOMING Ghlesg.leke 710 709 DSGE° " MONTICELLO 760 FOREJF�,W—"" Sonde .. - Farmingtor. 707 Co:amus LAKTwp Two RAMSEV Twp TM L" ANDOVER s NAM LAKE Bu11MO MAR' ON Two 767 ST CROIX Sommset ' �rT ^� BVF PALO 705 May Twp Twp 340 cc 366 COON ENTEROLLE CHAMPLIN RAPIDS LINO LAKES HUGO '. Y SPR 727 _ BROOKLYN SOMERSET ' 7.9 CORCORAN PARK �° wp 364 5�n °�1 805 768 708 .wp Twp WAVE k,f GREENFIELD 368 363 q RID MONTF,OSE LORETTO KLYN NTER Ha000 - "61AOE uv r vAU St Joseph Two 6iA1YWATER, 61 770 D1 AND ( 6y 301 '"a" Yhwdlar7 rrankMn INDEPENDENCE MEDINA DALE 712 SH�AIHTt MORlN Twp TwP i 306 725 "ID�� HT� MAPLE 305 MAPLEWOOD E PLAIN lJN! .. :.rtf LAKE 381 10 74 711 716 El WATERiOWN _f DN(: V- ,•r.TA B7 7" NT LANDFALL - HUDSON MINNETRISTA x.. 11—u POLLS 748 oay,�,ppd H i Wm„p MOUND Twp MOUND .nl�.a..19 _ HOP 308 303 7 .—T wp r. 387 , 6ES _' :a STBONIFACIUS uM MINNETONKA - WEST AFTON Troy SHOREWDOU SLANT O ` Two 1A AYER HFIELD 7f H 721 NEW Ew GERMANY via- 378 Twp Lawn 379 'L Camdso Twp WACONIA - r . . 608 - Clifton 394 CHASKA 397 N ,., _� 610 �:E` , ,..� Denman Twp Twp NORWOOD 1. 640 .,.�� YOUNG AMERICA COLOGNE D °^ J�aer, - Twp SHAr r,; LF HLIF:N•: '" 6 614 61 6 617 PRESCOTT Young Ba— CARVER VA`'I,q'GfE 61 Oak `vlove A^" TwF 7— louiawae .._`•FMO,'NI STINGS T� Twp wAL1F� HAMBURG -� JJasninator ltant:xr 626 .d•e w. ar. i ran: nw Tm' 'wG LAKEVILLE 624 370 FTw; 5. LTA FARMINGTON BELLE HAJ PTON NEW TRIER MIESVILLE PLAINE J-1-1ano BITw,o y Fel i Plama Eureka Two CaeTwp o 628 Douglas 650 TwP 630 HENDERSON Rar Tsq T y }�dl� "'I' Twp Handa,so Twp 658 LE SUEUR L IEID 69 w .mplsrealtor.com 33 annual review 1982009 Year Listings Processed Total Dollar 1980 37,018 $1.34 18,351 74,069 1981 35,580 $1.25 15,675 80,238 1982 41,465 $1.00 12,193 82,288 1983 50,794 $1.35 15,914 84,953 1984 53,646 $1.55 18,231 85,007 1985 51,492 $1.87 21,335 87,789 1986 58,382 $2.52 28,015 90,319 _ 1987 55,422 $2.46 25,772 95,914 lggo -1996: All property 1988 80,771 $3.21 34,244 93,977 types, all MLS districts. 1989 89,170 $3.28 33,962 96,658 1990 78,548 $3.37 34,496 98,016 1991 71,850 $3.52 35,598 99,402 1992 72,730 $4.31 41,944 103,264 1993 70,685 $4.30 39,842 107,569 1994 63,369 $4.73 42,454 111,806 1995 64,556 $4.94 42,310 117,053 1996 73,433 $5.82 46,949 124,022 1997 63,189 $5.68 41,441 137,085 1998 64,280 $7.09 47,836 147,346 1999 57,573 $7.62 46,675 163,277 1997- Present Single - family detached homes, 2000 59,618 $8.76 48,208 181,605 condominiums, 2001 71,861 $10.22 50,298 203,136 townhouses and twin 2002 73,940 $11.33 51,212 221,275 homes for the 13- county metropolitan area. 2003 86,378 $13.48 56,528 238,446 2004 97,737 $14.92 58,233 256,252 zooz: Home sales were recalculated by RMLS on 2005 99,211 $15.61 57,283 272,522 March 6, 2003 due to the 2006 108,022 $13.34 47,906 278,462 fact that the previous re- 2007 105,044 $11.01 40,055 274,767 port included some sales reported early in 2003. 2008 93,560 $9.18 38,730 236,953 2009 1 83,299 $9.18 45,185 199,404 Annual Review 1980 -2009 w -A-p. S.W. Prk. '+ -T.t.I D.II.r Volume (in billions) a Listings Processed are down to 2003 levels, which is not bad if you consider 2004 -2oo8 an anomaly. Unit Sales data made a nice little jump in 2oo9, but a lot of this can be squarely placed on the first -time home buyer tax credit and an increase in lender- mediated sales. This a thriv- ing market does not make. 34 Minneapolis Area Association of REALTORS% 70 As far as the housing market goes, it is almost as if the first decade of the 21st century did not exist. All gains in average sales price and total dollar volume from 2001 to 2oo9 have been lost. If you're wondering what the heck that weird pink egg thing on the contents page is supposed to represent, well, this is it. Annual Review 1980 -2009 - U.U.9. Pnca...a -unb sai.. Twin Cities home prices are up. again, but still below °06 Buyers hoping to purchase before the home buyer tax credits expire helped to rev up the Twin Cities market in February. By KARA McGUIRE, Star Tribune Last update: March 10, 2010 - 11:05 PM Twin Cities area home prices showed not one but two signs of stability in February, as. prices rose when compared with the previous month as well as February 2009. The median sale price for homes in the 13- county metro area climbed 6 percent -- from $150,000 in February 2009 to $159,000 in February 2010. The median price in January was $157,000. Still, the median price is one -third below the June 2006 peak. . A deeper dive into the data shows median sale prices rising and falling across the metro. In Hennepin County, prices were up 8.7 percent in February -- from $150,000 in 2009 to $163,000 in 2010. While the median price in Ramsey County is lower, year- over -year prices in February spiked 18.9 percent -- from $115,250 to $137,000. Median sales prices dropped in Anoka and Washington counties in February; they rose in Carver, Dakota and Scott counties. Activity was up in February, especially in the lower end of the'market, as buyers hit open houses in the hopes of finding their dream home before the April 30 deadline for the home buyer tax credits. Closed sales rose 4.2 percent compared with a year ago and are up almost 2 percent year - to -date. Pending sales increased by 6.4 percent from February 2009 to February 2010, and are also up 2 percent this year. Sellers hoping to cash -in on the $6,500 tax credit for repeat buyers added more inventory to a market that's been struggling for years now to rid itself of oversupply. New listings were up 7.8 percent in February. Currently, there are six homes on the market for every buyer. But as mortgage banker Alex Stenback points out on his blog Behind the Mortgage (www.behindthemortgage .com), excess inventory is concentrated in higher -priced properties as well as in condos and town homes. Housing continues to be a tale of two markets. Foreclosures are selling like hotcakes, while traditional home sales and short sales tend to sit longer. 71 The fact that fewer foreclosures are for sale is "tilting prices upward and stabilizing the market," Brad Fisher, president of the Minneapolis Area Association of Realtors, said in a news release. There were 751 foreclosure sales closed in February -- a 36.5 percent drop from the 1,182 sold in February 2009. Pending sales as well as listings were also down by about a third during the same period. Much of the activity on the market is concentrated in the under - $200,000 price range, since house hunters hoping to snatch that first -time home buyer tax credit before its expiration date tend to be younger and have less money. Tom Hamilton, a professor of real estate at the University of St. Thomas, argues that the tax incentives are keeping median sales prices artificially low. "If it wasn't for the tax credit, maybe they would have waited six months, a year, two years, but we've accelerated all of those sales to the current period. So we get a higher quantity of low - priced sales that are taking place now, deflating the median," he explains. Fast - forward to a few months from now, and Hamilton predicts homeowners will be pleasantly surprised by even higher median prices resulting from fewer lower -priced homes being sold. Fear of more foreclosures Some economists are bracing for a second wave of foreclosures, however, as borrowers with adjustable rate mortgages face higher resets or a job loss finally takes its toll on the family finances. More foreclosures on the market would push median prices down again. Data released Thursday by RealtyTrac supports the notion that the foreclosure crisis isn't a thing of the past. In February, Minnesota foreclosure activity -- defined as households that received a foreclosure - related filing such as a default notice or a scheduled sheriffs sale -- was up 16.8 percent compared with February 2009 and up 6.9 percent from January 2010. The key to a housing recovery isjobs, and a report on the Twin Cities -area economy released earlier this week by Moody's Economy.coin concludes that the area is better positioned than most for an economy recovery. "Employment has stabilized and will resume growth in this quarter at a rate of about 5,000 jobs per quarter in 2010 .... The presence of employers in industries such as health care and education that are well - placed to lead the recovery will drive hiring," the report said. 72 Declining values for homes take toll on cities, too Lower real estate taxes are now causing a crisis for local governments: To balance budgets, officials will need to raise tax rates in the teeth of a recession -- or cut services when the easy targets are already gone. - By KATIE HUMPHREY and DAVID PETERSON, Star Tribune staff writers Last update: March 13, 2010 - 9:57 PM When Terry Seaton got his property tax statement the other day, the housing crash hit home -- literally. A house he bought in Bloomington eight years ago for $195,000, which by mid- decade was worth more than $230,000, is now assessed at just $177,000 -- nearly $20,000 less than he paid for it. "It was real eye - opening," Seaton said. "That was a big nose dive." Imagine how Sue Kotchevar feels. The Eden Prairie finance chief just learned that the value of the homes and businesses in her city plunged by nearly $1 billion in one year. Millions of similar situations in hundreds of cities are combining to create a crisis with profound ramifications for city and county budgets, which rely on property tax dollars. Property owners' lost value means in order to balance their budgets, officials will need to raise tax rates in the teeth of a recession -- or cut services at a time when the easy targets are already gone. Total property values in counties across the metro area are down 6 percent or more. That may not sound like much, but in Ramsey County alone that adds up to $2.7 billion in lost value -- which will translate into lost property taxes. "We cut the flower pots last year," said Mayor Pete Ewals of Jordan. "Now it gets down to the nitty-gritty. Our biggest expense is people, but we hate to lay anyone off when the last time we tried to hire a finance person, 100 people applied. It's tough out there. But where else to cut? Maybe we need to wait to plow snow till daytime business hours, so we aren't paying so much overtime." A year ago this month, people across the metro area were startled to find that sliding home values were not showing up yet on tax bills -- or not nearly as much as they thought they should. Many were outraged and suspicious, accusing government officials of trying to finagle the system to keep the tax dollars flowing. Now the wheels of tax assessment 73 have caught up -- and a whole new set of anxieties is arising. Instead of citizen outrage, it's city and county officials breaking out in a panicky sweat. "I have three board members up for election. There's no appetite for a property tax increase," said Dave Hemze, the Carver County administrator. "The easy cuts are gone." 'It's a catastrophe' Average residential values are down 7 and 8 percent in many places, and by double digits in some. The commercial and industrial sector held steady last year, but now, with vast stretches of empty space, those too have dropped -- by 5 percent or more, depending on the place. "People have never lived through anything like this," said Jim Miller, executive director of the Minnesota League of Cities. "It's a catastrophe. The city of Brainerd is talking about losing six firefighters. It may go from 87 people to 66 in two years." The alternative is tax increases, but that's a political loser. "People don't like property taxes in the first place," Miller said, "so when their value goes down and their taxes still go up? There is going to be real ire out there." In Scott County, administrator Gary Shelton is warning of "bitter medicine" in what he's calling a "grim" year. In Savage, which bristles at its high -tax reputation, the City Council has agreed to spend a large portion of its emergency funds to finance a last - minute survey asking voters how prepared they would be for a tax hike -- or, if that's off the table, what services they're willing to do without. All of it is happening in an election year. County commissioners and city council members will be making these decisions with their election opponents screaming at them from their websites and Facebook pages. Lag time The home value picture can vary dramatically from city to city. In Hennepin County, assessor Jim Atchison said, values are sinking fastest in smaller outlying cities and places that have seen the most foreclosures. Hanover, Greenfield, Brooklyn Park and Brooklyn Center are all down 12 percent or more. Osseo is down 11 percent. On the other end, Edina is down 5.4 percent and Wayzata and St. Louis Park slipped 5.6 percent. 74 At the root of the home -value issue is the lag between when values really change and when that change is reflected on property tax statements. Statements issued in 2010, for taxes payable in 2011, are based on sales from 2009 or earlier. So it doesn't help that the real- estate market may finally be recovering a bit. Just pinning a 2010 value on commercial and industrial properties was tricky, assessors say, because there were so few sales to use as measuring sticks. Minneapolis assessor Patrick Todd said he usually has a couple hundred commercial and industrial sales to use when determining values. This year? Just 39. "We hate that, as appraisers, because we've got less to go on, said Mike Sutherland, the Anoka County assessor. There were just 27 commercial/industrial sales across the county in 2009, he said. Perhaps because citizens imagine that falling values are good news at tax time, fewer are calling to complain or ask questions. In Dakota County, where the assessor's office fields an average of 850 calls over four days when the statements go out, there were 635 this year. "By the overall reaction, with the volume down, that probably tells me that they're satisfied," said Dakota County assessor Bill Peterson. Or maybe, after being battered by waves of bad economic news, they've just accepted that the home values of yesterday are gone. Put Erin Carlson in that camp. She bought a Shakopee home with her husband in 2001. Now that their family has grown to five children -- a set of triplets arrived in 2008 -- they want to move. But they owe $188,000. Scott County values the house at $177,000. "I didn't have high hopes," Carlson said. "I thought this year it would even out instead of continuing to drop." Now, she feels "depressingly trapped." That's a feeling that local elected officials likely share. Staff writer Laurie Blake contributed to this article. 75 HENNEPIN COUNTY FORECLOSURES 2006 through 2009 City' Tof;M 2006 Total 2007 Total 2008 Total 2009 Bloomington 117 198 274 274 Brooklyn Center 135 250 446 318 Brooklyn Park 322 614 1,005 767 Eden Prairie 64 162 186 155 Edina 37 70 79 90 Golden Valley 19 47 75 56 Hopkins 36 66 90 82 Maple Grove 79 176 281 205 Minneapolis 1,650 3,026 3,185 2,234 Minnetonka 38 86 177 159 New Hope 25 54 90 83 Plymouth 72 124 165 182 Richfield 66 115 230 166 St. Louis Park 76 90 143 111 Out of the 90 properties in 2009 for the City of Edina: • 59% are single - family • 57% are homestead • 41 % are condominiums (includes seven townhouses) 76 FORECLOSURES AND SHORT SALES I N TH E TWI N CITI ES HOUSI NG MARKET Area 385: Edina New Listings Closed Sales Inventory of Homes for Sale ** Months Supply of Inventory** 'For the prior twelve months through October ` *As of the end of the period 600 500 400 300 200 100 0 500 450 400 350 300 250 200 150 100 50 0 Inventory of Homes for Sale Lender - Mediated 1 -2009* 1- 2010* + / -_ 102 139 +36.3% 53 78 +47.2% 30 38 +26.7% 5.6 5.4 -3.9% F�� MINNEAPOLIS AREA Associavon of REALTORS` Q4 -2009 Update Traditional 1 -2009* 1 -2010* +/- 1,447 1,319 -8.8% 599 569 -5.0% 468 437 -6.6% 9.9 8.1 -18.0% -- Traditional --D-,Lender-Mediated � J Q1 -07 Q2 -07 Q3 -07 Q4 -07 Q1 -08 Q2 -08 Q3 -08 Q4 -08 Q1 -09 Q2 -09 Q3 -09 Q4 -09 New Listings Closed Sales +Traditional Traditional Lender- Mediated �— Lender- Mediated 250 t 200 150 100 50 - "r - -'r —•• - -T r —� -- TILT r -- 04 01- 02- 03- 04- 07- Q2- 03- 04- Q1- Q2- 03- 04 Q1- Q2- Q3- Q4- 07- 012- Q3- Q4- Q1- Q2- Q3- Q4- 07 07 07 07 08 08 08 08 09 09 09 09 07 07 07 07 08 08 08 08 09 09 09 09 77 © 2009 Minneapolis Area Association of REALTORS& Inc. I Sponsored by Royal Credit Union �W www.rcu.org Page 1 of 2 FORECLOSURES AND SHORT SALES IN T H E Tw I N C I T I Es H O U S I N G MARKET MINNEAPOLIS AREA Associat on °f REALTORS` Area 385: Lender - Mediated Traditional Edina ' 1 -2009* 1 -2010* +f- 1 -2009* 1 -2010* Median Sales Price $188,000 $225,000 +19.7% $410,000 $340,000 -17.1% Median Price Per Square Foot $122 $118 -3.5% $177 $157 -11.2% Percent of Original List Price Received at Sale 92.3% 88.7% -3.9% 94.3% 91.6% -2.8% Days on Market Until Sale 163 162 -0.1% 121 146 +20.8% Median Sales Price a 1 -2008 thru 12 -2008 Median Price Per Square Foot ■ 1 -2009 thru 12 -2009 $410,000 $225,000 $188,000 Lender - Mediated Traditional $122 $118 Lender - Mediated Percent of Original List Price Received = 1 -2008 thru 12 -2008 Days on Market Until Sale ■ 1 -2009 thru 12 -2009 92.3% RR 7°/ Lender - Mediated 94.3% 91.6% Traditional 163 162 to 1 -2008 thru 12 -2008 ■ 1 -2009 thru 12 -2009 $177 Traditional , 1-2008 thru 12 -2008 ■ 1 -2009 thru 12 -2009 Lender - Mediated Traditional 78 © 2009 Minneapolis Area Association of REALTORSO, Inc. I Sponsored by Royal Credit Union �w www.rcu.org Page 2 of 2 Finance and Commerce - Foreclosure rates up by smallest amount in 4 years FINANCE&COMMERCE Real Estate March 12, 2010 Foreclosure rates up by smallest amount in 4 years by ALAN ZIBEL Associated Press The foreclosure crisis isn't over, but the pace of growth may finally be slowing down. Page 1 of 1 RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from a year ago, the smallest annual increase in four years. On the state level, foreclosures declined on a monthly and yearly basis in the hard -hit states of Nevada, Arizona and California, but still grew rapidly in Florida. More than 308,000 households, or one in every 418 homes, received a foreclosure - related notice, the Irvine, Calif. -based foreclosure listings company reported. That was down more than 2 percent from January Still, fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year. "It's premature to declare victory just yet," said Rick Sharga, a RealtyTrac senior vice president. He did, however, allow that, "If this is the beginning of a slowdown in growth rates, that would be a good thing." Banks repossessed nearly 79,000 homes last month, down 10 percent from January but still up 6 percent from February 2009. The RealtyTrac report follows an encouraging report last month from the Mortgage Bankers Association. It said the percentage of borrowers who had missed just one payment on their home loans fell to 3.6 percent in the October to December quarter, down from 3.8 percent in the third quarter. While that was a surprising piece of positive news, foreclosures were still at record high levels. The number of borrowers who have either missed a payment or are in foreclosure was at 15 percent. A record 2.8 million households were threatened with foreclosure last year, RealtyTrac said, and the number is expected to rise to more than 3 million homes this year. The foreclosure crisis forced the federal government and several states to come up with plans to prolong the process so delinquent borrowers can try to find help. But those efforts have barely dented the problem. Case in point: The Obama administration's $75 billion foreclosure prevention program has helped only 116,300 homeowners in the past year. After a year of trying to enroll homeowners in the Obama administration's program, housing counselors are feeling deflated. At many of the 100 mortgage companies charged with running the program, employees still "don't really know what the guidelines are — or refuse to adhere" to them, said Cheryl Cassell, manager of housing counseling at the National Community Reinvestment Coalition, a community group in Washington. Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties. Cities lose property tax dollars from homes that sit empty and lower property values. Economic woes, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit, but homeowners with good credit who took out conventional, fixed -rate loans are the fastest growing group of foreclosures. Among states, Nevada posted the nation's highest foreclosure rate, though foreclosures there were down 7 percent from January and down more than 30 percent from a year earlier. It was followed by Arizona, Florida, California and Michigan. Rounding out the top 10 were Utah, Idaho, Illinois, Georgia and Maryland. The metro area with the highest foreclosure rate in February was Las Vegas. Though one in every 90 homes there received a foreclosure filing, foreclosures were down 9 percent from a month earlier. Foreclosures in the No. 2. metropolitan area, the Cape Coral -Fort Myers area in Florida, were up 31 percent from a month earlier. Also topping the list of foreclosure hot spots were the Califomia metro areas of Modesto, Riverside -San Bernardino- Ontario and Stockton. Copyright 2010 Finance and Commerce All Rights Reserved U.S. Trust Building Suite 100, Minneapolis, MN 55402 (612) 333 -4244 79 http: / /www. finance- commerce.com/print.cfm ?recDD=15473 03/12/2010 o MINNESOTA- REVENUE t 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. :1 MMINO 9 MINNESOTA- REVENUE !=1, 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. 1:31 Q � 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 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. 0 btA 0 � MINNESOTA- REVENUE ■ Tunes 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. E1� IL 10 9 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. 84 0 Bank Sales MINNESOTA- REVENUE 0 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. W 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. :e L�IAAQ • CONCLUSION MINNESOTA- REVENUE 0 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.mn.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 87 NAME %ff ` Y Al A liI ADDRESS7os -" TOPIC NAME yW,412 i a No j�.4C� /PyAltl ADDRESS giF,V �z TOPIC q._ �� G��G - -.� /3ikr PI47 -/-1 NAME G Y, ADDRESS ' 15-a, TOPIC n ; (\u MAI- NAME � M CAP l Gj ADDRESS 7 % S 2 Pp /0 /6 y TOPIC NAME �� c) I o- � ADDRESS bc(� � �V'OiTU LOC A- Rm L ADDRESS S +Yk2� Mm �L L NAMEp .ter ADDRESS Lip 2v 7 <6 W TOPIC NAME ADDRESSS�O � C0&-A1 )4400A TOPIC // 7V/4i30/k IWA- -� L& ��nl? NAME / 01:5 ADDRESS / ZZZ-17LO w TOPIC ADDRESS ice. iA /!/ TOPIC ��?�/�f /L!7^i��T /nr��1G �F 1. 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