ROCHESTER, N.Y.--(BUSINESS WIRE)--Home Properties, Inc. (NYSE:HME) will release its third quarter 2007 financial results after the stock market closes on Wednesday, November 7, 2007. A conference call and live webcast will follow on Thursday, November 8, 2007, at 11:00 AM Eastern Time, which will include an update on Company results and outlook, followed by a question-and-answer session.
The conference call will be accessible by dialing 800-266-2145 (212-676-5362 for International callers). An audio replay will be available until November 14, 2007, by dialing 800-633-8284 or 402-977-9140 and entering “21319516.” The webcast will be available in the "Investors" section of the Company’s Web site, homeproperties.com, and at streetevents.com.
The full text of the earnings release and supplemental data also will be available on the Company Web site in the "Investors" section under "News & Events." Those wishing to have a copy of the information sent to them after the conclusion of the conference call and webcast may do so by contacting Home Properties Shareholder Services at 877-305-4111.
Home Properties is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast, Mid-Atlantic and Southeast Florida markets. Currently, Home Properties operates 129 communities containing 39,116 apartment units. Of these, 37,654 units in 126 communities are owned directly by the Company; 868 units are partially owned and managed by the Company as general partner, and 594 units are managed for other owners. For more information, visit Home Properties’ Web site at homeproperties.com.
Posted by your Local Anne Arundel Realtor
Friday, October 12, 2007
Saturday, September 22, 2007
Builder Confidence in Condo Market Declines
WASHINGTON, Sept. 20-- Despite reporting increased traffic by prospective
buyers, condominium builders and developers are extremely concerned about the
current conditions in the condo market, according to the latest results of the
Multifamily Condo Market Index (MCMI), released today by the National
Association of Home Builders (NAHB). The index lost 14 points in the second
quarter of this year to stand at 18, which is 14 points lower than it was a year
ago--and its lowest level since NAHB created the index five years ago.
"The problems in the mortgage market are rattling consumer confidence in
for-sale housing at the same time that the condo sector is trying to shake off
excess inventory in a lot of markets," said NAHB Chief Economist David Seiders.
"That combination is delaying any recovery in the condo sector."
The index is derived from a quarterly survey of multifamily builders and
developers, in which their responses are rated on a scale of 1 to 100, with a
rating of 50 generally indicating that the number of positive responses is about
the same as the number of negative responses.
Vinny Goldsmith, an Anne Arundel County Realtor, who owns and operates AnnapolisCondo.com a website featuring Annapolis Condominium Listings, had no comment.
According to the index, multifamily builders do not expect improvement in the
condo sector through the end of the year. The index gauging condo builders'
expectations for the next six months declined to 26.3 in the second quarter of
2007, compared with 33.6 at the same time a year ago.
On the positive side, multifamily builders did report an uptick in traffic of
prospective buyers in the second quarter: The index tracking this measure of
demand jumped 10 points, up to 36.8 in the second quarter, compared with 26.8 in
the second quarter of 2006.
buyers, condominium builders and developers are extremely concerned about the
current conditions in the condo market, according to the latest results of the
Multifamily Condo Market Index (MCMI), released today by the National
Association of Home Builders (NAHB). The index lost 14 points in the second
quarter of this year to stand at 18, which is 14 points lower than it was a year
ago--and its lowest level since NAHB created the index five years ago.
"The problems in the mortgage market are rattling consumer confidence in
for-sale housing at the same time that the condo sector is trying to shake off
excess inventory in a lot of markets," said NAHB Chief Economist David Seiders.
"That combination is delaying any recovery in the condo sector."
The index is derived from a quarterly survey of multifamily builders and
developers, in which their responses are rated on a scale of 1 to 100, with a
rating of 50 generally indicating that the number of positive responses is about
the same as the number of negative responses.
Vinny Goldsmith, an Anne Arundel County Realtor, who owns and operates AnnapolisCondo.com a website featuring Annapolis Condominium Listings, had no comment.
According to the index, multifamily builders do not expect improvement in the
condo sector through the end of the year. The index gauging condo builders'
expectations for the next six months declined to 26.3 in the second quarter of
2007, compared with 33.6 at the same time a year ago.
On the positive side, multifamily builders did report an uptick in traffic of
prospective buyers in the second quarter: The index tracking this measure of
demand jumped 10 points, up to 36.8 in the second quarter, compared with 26.8 in
the second quarter of 2006.
Tuesday, August 14, 2007
Condominium Entries Called For in Industry Awards
Program Honors the "Best of the Best" in Apartment and Condo Design and Development, Marketing and Management
Brought to you by Annapolis Condominiums For Sale or Rent
WASHINGTON, August 14 - The National Association of Home Builders (NAHB) Multifamily is now accepting entries for the 2008 Pillars of the Industry Awards, the multifamily housing industry's most prestigious awards. The annual awards honor recipients in more than 30 categories representing all facets of the multifamily housing industry.
Since 1990, the Pillars Awards have honored superior achievement in apartment and condo design, development, marketing, and management and are considered a showcase of future trends and innovation. A distinguished panel of judges representing expertise in each of these areas is invited to judge the submissions each year.
"The Pillars of the Industry awards showcase the best and most creative work in our industry," said Leonard Wood, chairman of NAHB's Multifamily Leadership Board and director of Wood Partners, in Atlanta. "For nearly two decades NAHB has recognized superior achievements in the multifamily market, and we encourage all those in the industry to take the opportunity to share their hard work with us and be considered for this high-profile award."
Winners will be recognized at an awards gala held in conjunction with NAHB's Pillars of the Industry Conference, the industry's premier education and networking event, held on April 2, at The Broadmoor hotel in Colorado Springs, Colo.
Posted by your local Anne Arundel County Realtor
Brought to you by Annapolis Condominiums For Sale or Rent
WASHINGTON, August 14 - The National Association of Home Builders (NAHB) Multifamily is now accepting entries for the 2008 Pillars of the Industry Awards, the multifamily housing industry's most prestigious awards. The annual awards honor recipients in more than 30 categories representing all facets of the multifamily housing industry.
Since 1990, the Pillars Awards have honored superior achievement in apartment and condo design, development, marketing, and management and are considered a showcase of future trends and innovation. A distinguished panel of judges representing expertise in each of these areas is invited to judge the submissions each year.
"The Pillars of the Industry awards showcase the best and most creative work in our industry," said Leonard Wood, chairman of NAHB's Multifamily Leadership Board and director of Wood Partners, in Atlanta. "For nearly two decades NAHB has recognized superior achievements in the multifamily market, and we encourage all those in the industry to take the opportunity to share their hard work with us and be considered for this high-profile award."
Winners will be recognized at an awards gala held in conjunction with NAHB's Pillars of the Industry Conference, the industry's premier education and networking event, held on April 2, at The Broadmoor hotel in Colorado Springs, Colo.
Posted by your local Anne Arundel County Realtor
Saturday, May 12, 2007
From http://www.connectionnewspapers.com/article.asp?article=81421&paper=70&cat=116
Don't look now, but a downtown condo project is in financial trouble.
On Sunday, BankEast published a foreclosure notice in connection with a planned Commerce Lofts project on Gay Street.
Developer William Cole Smith said he's working to refinance the project and everything will be straightened out, but you can bet downtown boosters will be watching closely to see whether the trouble is merely a speed bump or the first sign of an overheated market in the city center.
Smith, a Doyle High School and East Tennessee State University graduate who's now based in California, said he had a 12-month loan that would have been refinanced, but his contractor missed the deadlines for completing its work.
"I've got three weeks to refinance," he said. "We've got several banks in New York committed to doing it. It's just a very tight time frame."
Smith said he planned all along to refinance the project and obtain additional funding to complete the condo units after renovating the building itself.
The process hit a snag because his general contractor, Buckhead Construction Co., failed to complete its tasks, Smith said. He has held back a portion of his payments to the contractor until it finishes the job.
"The group that did the construction was six months late," he said. "They were supposed to have been finished in October. And we were supposed to have a certificate of completion in October. Then you go to the bank, then you sell the locations, then everything stays in gear. Buckhead, our general contractor, did not accomplish what they were supposed to do."
Buckhead President Edward Nicholson declined to answer questions about the Commerce project, but in a prepared statement said his company has fulfilled its contracts and would like to finish the project.
"We worked with Cole so that he could restructure his deals and could pay us," the statement said. "Unfortunately, we have found it necessary in the last week or so to file a lien against this property. We regret having to take this action and still believe in the Commerce Building."
A substitute trustee's sale is scheduled for May 29, although Smith appeared confident that he will obtain the financing he needs. Perhaps the bigger question is whether the hiccup signals anything about the broader condominium market.
Last week, this space reported that residential building permits jumped sharply in Knox County in the first quarter, but a pair of sharp-eyed readers subsequently pointed out a distinction in the data. According to the figures from research firm The Market Edge, "attached housing" permits - i.e., condos - grew by 246 percent, while individual home permits dropped by 16 percent.
Not all of those condos are downtown, but it's certainly true that the downtown supply has expanded rapidly in the last couple of years, so it will be interesting to see if demand keeps up.
For his part, Smith said the condo market hasn't softened and he could easily sell all of the Commerce units but has decided to go in a different direction.
He gave few details but said that the building is "going to be a different type of project."
Don't look now, but a downtown condo project is in financial trouble.
On Sunday, BankEast published a foreclosure notice in connection with a planned Commerce Lofts project on Gay Street.
Developer William Cole Smith said he's working to refinance the project and everything will be straightened out, but you can bet downtown boosters will be watching closely to see whether the trouble is merely a speed bump or the first sign of an overheated market in the city center.
Smith, a Doyle High School and East Tennessee State University graduate who's now based in California, said he had a 12-month loan that would have been refinanced, but his contractor missed the deadlines for completing its work.
"I've got three weeks to refinance," he said. "We've got several banks in New York committed to doing it. It's just a very tight time frame."
Smith said he planned all along to refinance the project and obtain additional funding to complete the condo units after renovating the building itself.
The process hit a snag because his general contractor, Buckhead Construction Co., failed to complete its tasks, Smith said. He has held back a portion of his payments to the contractor until it finishes the job.
"The group that did the construction was six months late," he said. "They were supposed to have been finished in October. And we were supposed to have a certificate of completion in October. Then you go to the bank, then you sell the locations, then everything stays in gear. Buckhead, our general contractor, did not accomplish what they were supposed to do."
Buckhead President Edward Nicholson declined to answer questions about the Commerce project, but in a prepared statement said his company has fulfilled its contracts and would like to finish the project.
"We worked with Cole so that he could restructure his deals and could pay us," the statement said. "Unfortunately, we have found it necessary in the last week or so to file a lien against this property. We regret having to take this action and still believe in the Commerce Building."
A substitute trustee's sale is scheduled for May 29, although Smith appeared confident that he will obtain the financing he needs. Perhaps the bigger question is whether the hiccup signals anything about the broader condominium market.
Last week, this space reported that residential building permits jumped sharply in Knox County in the first quarter, but a pair of sharp-eyed readers subsequently pointed out a distinction in the data. According to the figures from research firm The Market Edge, "attached housing" permits - i.e., condos - grew by 246 percent, while individual home permits dropped by 16 percent.
Not all of those condos are downtown, but it's certainly true that the downtown supply has expanded rapidly in the last couple of years, so it will be interesting to see if demand keeps up.
For his part, Smith said the condo market hasn't softened and he could easily sell all of the Commerce units but has decided to go in a different direction.
He gave few details but said that the building is "going to be a different type of project."
AZ Condo Market Slows Down
MESA, Ariz. — The local resale home market may seem to be functioning at levels below desired activity, but it is following a very traditional pattern. April recordings at 4,855 sales are below the 5,385 sales recorded in March, but above January (4,520) and February (4,280) sales. April recordings are well below the 5,980 sales of April 2006 and 8,735 sales of April 2005, but comparable to the 4,870 sales of April 2000.
So far in 2007, a total of 19,045 homes have been recorded sold, in contrast to 23,960 for 2006 year to date and 36,060 sales for 2005 year to date.
“While the resale market is tracking near historical norms, the levels should be well below those of the last few years, because the current market lacks the market frenzy to own and/or invest at almost any price and reasoning,” said Jay Q. Butler, director of Realty Studies at Arizona State University’s Polytechnic campus.
“The new home has become a strong competitive and attractive alternative to the resale home in many areas of the market as new home builders have been aggressively pursuing buyers through incentives such as specially priced upgrades, free pools and gift cards. The general expectation is that the 2007 resale housing market should be a good year, but no where near the records,” added Butler. “This tends to assume that there are no negative geopolitical events and that the subprime problem is contained.”
Much like the ever increasing sales activity of the last few years, the rapid improvement in prices has disappeared. The median home price in April was $265,000 in comparison to $265,470 for March and last year’s $264,900. For April 2007, 15 percent of all recorded sales were for homes priced from $125,000 to $199,999, 44 percent for $200,000 to $299,999 and 41 percent for homes priced more than $300,000. Last year, the distribution was 16 percent of all recorded sales were for homes priced from $125,000 to $199,999, 43 percent for $200,000 to $299,999 and 38 percent for homes priced more than $300,000.
The increase in the higher price levels demonstrates how the importance of the move-up market emerges in a slowing market. Since the greater Phoenix area is so large, the median price can range significantly from $683,000 ($713,500 in March) in North Scottsdale to $132,000 ($145,950 in March) in the Sky Harbor area of the city of Phoenix.
Because mortgage interest rates decline slightly from last year’s 6.0 percent to 5.8 percent and home prices remained stable, the monthly payment decreased slightly from last year’s $1,350 to $1,320. Even though mortgage interest rates have been declining for the last few months, limited home appreciation and household income continues to raise concern about the ability of some homeowners to maintain their homes. In response to issues raised in the subprime market, underwriting guidelines have been tightening, making it more difficult for potential buyers to qualify for a mortgage.
Because townhouse/condominium units are popular with seasonal visitors, it is not unusual to observe an improvement in the early months of the year. Thus, April had 1,305 sales, in comparison to 1,350 for March and 1,390 sales for a year ago. The median home price increased from $181,000 in March to a record $184,950.
The median square footage for a single-family home recorded sold in April 2007 was 1,695 square feet, which is larger than the 1,650 square feet for a year ago. The larger size further demonstrates the role of the move-up sector in the local housing market. In the townhouse/condominium sector, the median square footage was 1,085 square feet, which is smaller than the 1,160 square feet reported a year ago.
* In contrast to April 2006, recorded sales in the city of Phoenix decreased from 1,860 sales to 1,280 sales, while the median sales price increased to $225,000 from $220,000 for a year ago. Since Phoenix is a geographically large city, the median prices can range significantly such as $132,000 in the Sky Harbor area to $329,500 ($336,000 in March) in the Union Hills area. The townhouse/condominium sector decreased from 430 to 415 sales while the median price increased from $150,275 to $165,000.
* The Scottsdale resale home market declined from 460 a year ago to 400 recorded sales, with the median sales price decreasing from last year’s $593,000 to $557,500. The median resale home price is $683,000 ($713,500 in March) in North Scottsdale and $333,000 ($323,000 in March) in South Scottsdale. The townhouse/condominium sector in Scottsdale remained at 300 sales and the median sales price decreased from $275,000 to $264,450.
* The Mesa resale housing market declined from 660 to 530 sales, while the median price fell from $245,900 to $234,510 ($242,700 in March). The townhouse/condominium sector also fell from 215 to 185 sales, while the median home price decreased from $160,000 to $158,000.
* Glendale decreased from 480 to 330 sales, and the median sales price decreased from $250,000 to $245,000 ($248,250 in March). The townhouse/condominium sector remained at 60 sales, while the median sales price increased from $134,000 to $136,250.
* For the city of Peoria, the resale market was stable at 250 sales, while the median price moved from $275,000 to $257,915 ($270,000 in March). The townhouse/condominium sector decreased from 45 to 25 sales and the median price went from $165,000 to $200,000.
* In comparison to a year ago, the Sun City resale market remained at 115 sales, while the median sales price increased to $210,000 from $200,000. As resale activity in Sun City West stayed at 55 sales, the median sales price decreased from $250,000 to $222,000. The townhouse/condominium market in Sun City declined from 65 to 60 recorded sales, while the median home price increased from $130,000 to $136,000. In Sun City West, activity remained at 20 sales and the median sales price decreased from $165,800 to $164,700.
* The resale market in Gilbert decreased from 310 to 285 sales and the median sales price decreased from $339,000 to $295,195 ($295,500 in March). The townhouse/condominium market improved from 10 to 15 sales, as the median sales price decreased from $209,900 to $207,500.
* For the city of Chandler, the resale market fell from 405 to 375 recorded sales, while the median sales price went from $295,000 to 297,950 ($293,850 in March). The townhouse/condominium market increased from 45 to 60 sales, but the median sales price declined from $184,450 to $179,975.
* The resale market in Tempe decreased from 160 to 120 sales, with the median sales price increasing from $275,000 to $285,000 ($278,750 in March). The townhouse/condominium sector moved from 70 to 75 sales and the median sales price decreased from $189,500 to $184,200.
* The highest median sales price was in Paradise Valley at $1,637,500 with a median square foot house of 3,615 square feet.
* In the West Valley, the following communities represent 10 percent of the resale market.
o Avondale fell from 135 to 90 sales, with the median price moving from $260,000 to $233,975 ($232,280 in March).
o El Mirage decreased from 90 to 50 sales, while the median home price went from $219,900 to $199,000 ($213,750 in March).
o Goodyear went from 100 to 95 sales, while the median price decreased from $298,200 to $265,000 ($255,000 in March).
o Surprise increased from 230 sales to 235 sales, with the median price falling from $250,000 a year ago to $246,060 ($241,500 in March).
Provided by http://www.poly.asu.edu/news/2007/05/09/
So far in 2007, a total of 19,045 homes have been recorded sold, in contrast to 23,960 for 2006 year to date and 36,060 sales for 2005 year to date.
“While the resale market is tracking near historical norms, the levels should be well below those of the last few years, because the current market lacks the market frenzy to own and/or invest at almost any price and reasoning,” said Jay Q. Butler, director of Realty Studies at Arizona State University’s Polytechnic campus.
“The new home has become a strong competitive and attractive alternative to the resale home in many areas of the market as new home builders have been aggressively pursuing buyers through incentives such as specially priced upgrades, free pools and gift cards. The general expectation is that the 2007 resale housing market should be a good year, but no where near the records,” added Butler. “This tends to assume that there are no negative geopolitical events and that the subprime problem is contained.”
Much like the ever increasing sales activity of the last few years, the rapid improvement in prices has disappeared. The median home price in April was $265,000 in comparison to $265,470 for March and last year’s $264,900. For April 2007, 15 percent of all recorded sales were for homes priced from $125,000 to $199,999, 44 percent for $200,000 to $299,999 and 41 percent for homes priced more than $300,000. Last year, the distribution was 16 percent of all recorded sales were for homes priced from $125,000 to $199,999, 43 percent for $200,000 to $299,999 and 38 percent for homes priced more than $300,000.
The increase in the higher price levels demonstrates how the importance of the move-up market emerges in a slowing market. Since the greater Phoenix area is so large, the median price can range significantly from $683,000 ($713,500 in March) in North Scottsdale to $132,000 ($145,950 in March) in the Sky Harbor area of the city of Phoenix.
Because mortgage interest rates decline slightly from last year’s 6.0 percent to 5.8 percent and home prices remained stable, the monthly payment decreased slightly from last year’s $1,350 to $1,320. Even though mortgage interest rates have been declining for the last few months, limited home appreciation and household income continues to raise concern about the ability of some homeowners to maintain their homes. In response to issues raised in the subprime market, underwriting guidelines have been tightening, making it more difficult for potential buyers to qualify for a mortgage.
Because townhouse/condominium units are popular with seasonal visitors, it is not unusual to observe an improvement in the early months of the year. Thus, April had 1,305 sales, in comparison to 1,350 for March and 1,390 sales for a year ago. The median home price increased from $181,000 in March to a record $184,950.
The median square footage for a single-family home recorded sold in April 2007 was 1,695 square feet, which is larger than the 1,650 square feet for a year ago. The larger size further demonstrates the role of the move-up sector in the local housing market. In the townhouse/condominium sector, the median square footage was 1,085 square feet, which is smaller than the 1,160 square feet reported a year ago.
* In contrast to April 2006, recorded sales in the city of Phoenix decreased from 1,860 sales to 1,280 sales, while the median sales price increased to $225,000 from $220,000 for a year ago. Since Phoenix is a geographically large city, the median prices can range significantly such as $132,000 in the Sky Harbor area to $329,500 ($336,000 in March) in the Union Hills area. The townhouse/condominium sector decreased from 430 to 415 sales while the median price increased from $150,275 to $165,000.
* The Scottsdale resale home market declined from 460 a year ago to 400 recorded sales, with the median sales price decreasing from last year’s $593,000 to $557,500. The median resale home price is $683,000 ($713,500 in March) in North Scottsdale and $333,000 ($323,000 in March) in South Scottsdale. The townhouse/condominium sector in Scottsdale remained at 300 sales and the median sales price decreased from $275,000 to $264,450.
* The Mesa resale housing market declined from 660 to 530 sales, while the median price fell from $245,900 to $234,510 ($242,700 in March). The townhouse/condominium sector also fell from 215 to 185 sales, while the median home price decreased from $160,000 to $158,000.
* Glendale decreased from 480 to 330 sales, and the median sales price decreased from $250,000 to $245,000 ($248,250 in March). The townhouse/condominium sector remained at 60 sales, while the median sales price increased from $134,000 to $136,250.
* For the city of Peoria, the resale market was stable at 250 sales, while the median price moved from $275,000 to $257,915 ($270,000 in March). The townhouse/condominium sector decreased from 45 to 25 sales and the median price went from $165,000 to $200,000.
* In comparison to a year ago, the Sun City resale market remained at 115 sales, while the median sales price increased to $210,000 from $200,000. As resale activity in Sun City West stayed at 55 sales, the median sales price decreased from $250,000 to $222,000. The townhouse/condominium market in Sun City declined from 65 to 60 recorded sales, while the median home price increased from $130,000 to $136,000. In Sun City West, activity remained at 20 sales and the median sales price decreased from $165,800 to $164,700.
* The resale market in Gilbert decreased from 310 to 285 sales and the median sales price decreased from $339,000 to $295,195 ($295,500 in March). The townhouse/condominium market improved from 10 to 15 sales, as the median sales price decreased from $209,900 to $207,500.
* For the city of Chandler, the resale market fell from 405 to 375 recorded sales, while the median sales price went from $295,000 to 297,950 ($293,850 in March). The townhouse/condominium market increased from 45 to 60 sales, but the median sales price declined from $184,450 to $179,975.
* The resale market in Tempe decreased from 160 to 120 sales, with the median sales price increasing from $275,000 to $285,000 ($278,750 in March). The townhouse/condominium sector moved from 70 to 75 sales and the median sales price decreased from $189,500 to $184,200.
* The highest median sales price was in Paradise Valley at $1,637,500 with a median square foot house of 3,615 square feet.
* In the West Valley, the following communities represent 10 percent of the resale market.
o Avondale fell from 135 to 90 sales, with the median price moving from $260,000 to $233,975 ($232,280 in March).
o El Mirage decreased from 90 to 50 sales, while the median home price went from $219,900 to $199,000 ($213,750 in March).
o Goodyear went from 100 to 95 sales, while the median price decreased from $298,200 to $265,000 ($255,000 in March).
o Surprise increased from 230 sales to 235 sales, with the median price falling from $250,000 a year ago to $246,060 ($241,500 in March).
Provided by http://www.poly.asu.edu/news/2007/05/09/
Ocean City Md Condo Assessments Threaten Amusement Park
From the Coastal Dispatch
OCEAN CITY – Local residents and visitors to the resort from all over the country are bemoaning the potential loss of the landmark Trimper’s Rides brought on by staggering property tax increases, but hope remains the historic amusement park on the Boardwalk could be saved if the assessment can be overturned on appeal.
It remains to be seen if the Trimper’s Board of Directors can be successful in its attempt to appeal the most recent assessment of the property’s value, which increased by 163 percent in three years from $29.6 million to $77.9 million, but there will be ample opportunity for the owners to make their case.
State Director of Taxation and Assessment for Worcester County Robert Smith said this week the Trimper’s have appealed the most recent assessment and his office would go to great lengths to ensure it is accurate.
“We’re going to carefully review the Trimper property from every angle,” he said. “We’re going to compare it with other properties, we’re going to compare it with the market and we’re going to revisit every line of the assessment,” he said. “That would be done for any property owner who files an appeal.”
Smith could not elaborate on the details of the Trimper assessment because it is currently under appeal, but he did say his office would not hesitate to make the appropriate adjustments if and when any errors were found.
“If we find an error, we’ll be glad to correct it, just as we would with any property that is re-evaluated,” he said.
It remains uncertain why the assessed value of Trimper’s Rides has skyrocketed in the last three years when the use of the property has remained relatively unchanged for decades, but it is not because the assessment office bases new values on what a property could become in the future. Smith said it was a misconception property assessments are based on what could be the “highest and best use” of the land.
Trimper Vice President Doug Trimper said the assessment office made its latest determination of the value of the property based on an erroneous vision of what it could become in the future if the park ceased to exist.
“In spite of a glut in the Ocean City condominium market, assessments are based on a ‘what if’ mentality,” he said. “Ground level, single-story businesses cannot compete with government-imposed airspace assessments of stacked condos on property.”
However, Smith reasserted the assessed values of a property are based strictly on its current use and no consideration of what the property could become is factored into the equation.
“We don’t assess property on the ‘what if,’ we assess property based on what is on the property at the time of the assessment,” he said. “We may privately consider what the best and highest use could be, but it is not a determining factor in the final assessment of a property.”
Detractors of the assessment process point out the intended or unintended side effect of exorbitant increases is forcing property owners to cave in to developers looking to gobble up land for redevelopment because they can no longer afford the taxes. In the Trimper’s example, property taxes have increased by $500,000 in three years, forcing company leaders to consider abandoning the park after 120 years and weighing whether to sell or develop the property.
Smith, however, dismissed the notion his office is speculating on the potential value of a property when preparing an assessment.
“I’ve heard it said we are basing the assessments on the highest and best use of the land, but that’s simply not the truth,” he said. “Now someone might recommend the best use of that land is condos and that might be true in some examples, but we’re not in the recommendation business. We’re in the numbers business.”
Doug Trimper has said his family business is faced with the decision to raise prices to offset the staggering increase in property tax or consider selling off the property for some other future use. Given the reported amount of red ink flowing in the company’s books, Trimper’s Rides is leaning toward the latter unless they get some sort of relief.
“This is not just about us surviving, it is all business in the area, and all visitors, too,” he said. “Who wants to pay ridiculous prices for Boardwalk items jacked out of sight by extreme taxes or extreme rent from owners paying extreme taxes, just so that developers can stack more condominiums?
Some have suggested the assessment office is forcing property owners’ hands by making recommendations on what the best and highest use of their property is, but Smith said his office does nothing of the sort, intentionally or unintentionally.
“The assessment office has never recommended to a property owner what to do with his or her property in any situation, including the Trimpers,” he said. “We’re not in the business of making recommendations on the best use of the land. We simply assess the value based on what is already on the ground.”
Smith reasserted his office does not give any consideration to potential future development of a property when preparing its assessment. He cited the current real estate and condominium climate in the resort to illustrate his point.
“We know condos are the big thing in Ocean City right now,” he said. “As of today, there are 11 new condos registered to be built in Ocean City. What does that tell us? Is the market good or is the market bad? We don’t know. We simply follow the market, we don’t set the market.”
Resident property owners in Worcester County and Ocean City are protected from exorbitant tax increases based on assessments by the Homestead Cap, which limits the amount of tax increase regardless of increases in the assessments. However, no such cap is afforded local owners of commercial properties. Smith said the idea has some merit for locally owned commercial property, but does not currently exist.
“I’m sure it has been discussed, but that would have to be a legislative change,” he said. “It would be problematic because local commercial property owners likely also live here and they wouldn’t be able to use the cap for both their home and their business. I don’t think they could have it both ways.”
The highest and best use argument transcends the debate about the assessment for Trimper’s and there are many examples all over the county where the same debate can be applied.
For example, if a property owner owns 30 acres of beautiful waterfront land in Worcester County, but only has his or her house on it, the assessment reflects the market value of the house and the land itself. It is not based on what the property could become, it is assessed on what it is at the time of the assessment.
“In that example, even if we determine there are 20 buildable lots on that 30-acre property and they could be sold for $90,000 based on market value, we don’t assess that property for $1.8 million, we assess it based on the condition of the property at the time,” he said. “Now if the property owner went to the county planning office and submitted plats for 20 home sites, that would change everything.”
OCEAN CITY – Local residents and visitors to the resort from all over the country are bemoaning the potential loss of the landmark Trimper’s Rides brought on by staggering property tax increases, but hope remains the historic amusement park on the Boardwalk could be saved if the assessment can be overturned on appeal.
It remains to be seen if the Trimper’s Board of Directors can be successful in its attempt to appeal the most recent assessment of the property’s value, which increased by 163 percent in three years from $29.6 million to $77.9 million, but there will be ample opportunity for the owners to make their case.
State Director of Taxation and Assessment for Worcester County Robert Smith said this week the Trimper’s have appealed the most recent assessment and his office would go to great lengths to ensure it is accurate.
“We’re going to carefully review the Trimper property from every angle,” he said. “We’re going to compare it with other properties, we’re going to compare it with the market and we’re going to revisit every line of the assessment,” he said. “That would be done for any property owner who files an appeal.”
Smith could not elaborate on the details of the Trimper assessment because it is currently under appeal, but he did say his office would not hesitate to make the appropriate adjustments if and when any errors were found.
“If we find an error, we’ll be glad to correct it, just as we would with any property that is re-evaluated,” he said.
It remains uncertain why the assessed value of Trimper’s Rides has skyrocketed in the last three years when the use of the property has remained relatively unchanged for decades, but it is not because the assessment office bases new values on what a property could become in the future. Smith said it was a misconception property assessments are based on what could be the “highest and best use” of the land.
Trimper Vice President Doug Trimper said the assessment office made its latest determination of the value of the property based on an erroneous vision of what it could become in the future if the park ceased to exist.
“In spite of a glut in the Ocean City condominium market, assessments are based on a ‘what if’ mentality,” he said. “Ground level, single-story businesses cannot compete with government-imposed airspace assessments of stacked condos on property.”
However, Smith reasserted the assessed values of a property are based strictly on its current use and no consideration of what the property could become is factored into the equation.
“We don’t assess property on the ‘what if,’ we assess property based on what is on the property at the time of the assessment,” he said. “We may privately consider what the best and highest use could be, but it is not a determining factor in the final assessment of a property.”
Detractors of the assessment process point out the intended or unintended side effect of exorbitant increases is forcing property owners to cave in to developers looking to gobble up land for redevelopment because they can no longer afford the taxes. In the Trimper’s example, property taxes have increased by $500,000 in three years, forcing company leaders to consider abandoning the park after 120 years and weighing whether to sell or develop the property.
Smith, however, dismissed the notion his office is speculating on the potential value of a property when preparing an assessment.
“I’ve heard it said we are basing the assessments on the highest and best use of the land, but that’s simply not the truth,” he said. “Now someone might recommend the best use of that land is condos and that might be true in some examples, but we’re not in the recommendation business. We’re in the numbers business.”
Doug Trimper has said his family business is faced with the decision to raise prices to offset the staggering increase in property tax or consider selling off the property for some other future use. Given the reported amount of red ink flowing in the company’s books, Trimper’s Rides is leaning toward the latter unless they get some sort of relief.
“This is not just about us surviving, it is all business in the area, and all visitors, too,” he said. “Who wants to pay ridiculous prices for Boardwalk items jacked out of sight by extreme taxes or extreme rent from owners paying extreme taxes, just so that developers can stack more condominiums?
Some have suggested the assessment office is forcing property owners’ hands by making recommendations on what the best and highest use of their property is, but Smith said his office does nothing of the sort, intentionally or unintentionally.
“The assessment office has never recommended to a property owner what to do with his or her property in any situation, including the Trimpers,” he said. “We’re not in the business of making recommendations on the best use of the land. We simply assess the value based on what is already on the ground.”
Smith reasserted his office does not give any consideration to potential future development of a property when preparing its assessment. He cited the current real estate and condominium climate in the resort to illustrate his point.
“We know condos are the big thing in Ocean City right now,” he said. “As of today, there are 11 new condos registered to be built in Ocean City. What does that tell us? Is the market good or is the market bad? We don’t know. We simply follow the market, we don’t set the market.”
Resident property owners in Worcester County and Ocean City are protected from exorbitant tax increases based on assessments by the Homestead Cap, which limits the amount of tax increase regardless of increases in the assessments. However, no such cap is afforded local owners of commercial properties. Smith said the idea has some merit for locally owned commercial property, but does not currently exist.
“I’m sure it has been discussed, but that would have to be a legislative change,” he said. “It would be problematic because local commercial property owners likely also live here and they wouldn’t be able to use the cap for both their home and their business. I don’t think they could have it both ways.”
The highest and best use argument transcends the debate about the assessment for Trimper’s and there are many examples all over the county where the same debate can be applied.
For example, if a property owner owns 30 acres of beautiful waterfront land in Worcester County, but only has his or her house on it, the assessment reflects the market value of the house and the land itself. It is not based on what the property could become, it is assessed on what it is at the time of the assessment.
“In that example, even if we determine there are 20 buildable lots on that 30-acre property and they could be sold for $90,000 based on market value, we don’t assess that property for $1.8 million, we assess it based on the condition of the property at the time,” he said. “Now if the property owner went to the county planning office and submitted plats for 20 home sites, that would change everything.”
Sales Incentives and Closing Cost Help Could be Skewing Home Prices
Subsidies and incentives that get a sale closed are increasingly popular in both the new and the existing home market — so popular that some economists are concerned that they are skewing the home price data.
There are no national numbers available, but in the Washington, D.C., area deals with some form of seller subsidy jumped from 35 percent to 58 percent in two years, according to Lisa Fowler, a researcher at George Mason University's Center for Regional Analysis. The average home sold there for $470,000 in April, with a subsidy of $9,700.
Fowler found that prices in Washington, D.C., fell by 0.2 percent over the past year if incentives were included, compared with a 0.7 percent rise if they weren't.
Lenders are also concerned that the most aggressive deals could be fraudulent. "These days you cannot get into a home unless you're putting some money down, at least 10 percent for those with less-than-stellar credit," says Frank McKenna, chief fraud strategist at BasePoint Analytics, which analyzes mortgage data. "If borrowers are subverting that by getting cash back from sellers, that's when lenders consider it a misrepresentation, or fraud."
Source: BusinessWeek Online, Christopher Palmeri (05/10/07)
Posted by your local Anne Arundel County Realtor
There are no national numbers available, but in the Washington, D.C., area deals with some form of seller subsidy jumped from 35 percent to 58 percent in two years, according to Lisa Fowler, a researcher at George Mason University's Center for Regional Analysis. The average home sold there for $470,000 in April, with a subsidy of $9,700.
Fowler found that prices in Washington, D.C., fell by 0.2 percent over the past year if incentives were included, compared with a 0.7 percent rise if they weren't.
Lenders are also concerned that the most aggressive deals could be fraudulent. "These days you cannot get into a home unless you're putting some money down, at least 10 percent for those with less-than-stellar credit," says Frank McKenna, chief fraud strategist at BasePoint Analytics, which analyzes mortgage data. "If borrowers are subverting that by getting cash back from sellers, that's when lenders consider it a misrepresentation, or fraud."
Source: BusinessWeek Online, Christopher Palmeri (05/10/07)
Posted by your local Anne Arundel County Realtor
Top 10 Tax Friendly Cities in the U.S.
A recent survey by the District of Columbia government identified the metro areas that take the smallest tax bite. The survey looked at the tax burden for families in the largest city in each of the 50 states and Washington, D.C.
The D.C. government in its survey accounted for local income, sales, real estate, and car/personal property taxes for couples at various income levels. The survey’s rankings provided below from Kiplinger’s Personal Finance Magazine are based on a dual-income couple, with one school-age child and a combined gross income of $75,000 in 2005.
Here are the 10 metro areas that under those circumstances claim the lowest percentage of taxes.
1. Anchorage, Alaska: 4.1 percent
2. Cheyenne, Wyo.: 4.3 percent
3. Jacksonville, Fla.: 4.6 percent
4. Las Vegas, Nev.: 5.4 percent
5. Honolulu, Hawaii.: 5.6 percent
6. Memphis, Tenn.: 6.1 percent
7. Sioux Falls, S.D.: 6.3 percent
8. Fargo, N.D.: 6.3 percent
9. Houston, Texas: 6.3 percent
10. Billings, Mont.: 6.7 percent
Not surprisingly, seven of the top 10 cities above are in states with no income tax.
Source: Kiplinger Personal Finance (05/07)
Posted by your local Anne Arundel County Realtor
The D.C. government in its survey accounted for local income, sales, real estate, and car/personal property taxes for couples at various income levels. The survey’s rankings provided below from Kiplinger’s Personal Finance Magazine are based on a dual-income couple, with one school-age child and a combined gross income of $75,000 in 2005.
Here are the 10 metro areas that under those circumstances claim the lowest percentage of taxes.
1. Anchorage, Alaska: 4.1 percent
2. Cheyenne, Wyo.: 4.3 percent
3. Jacksonville, Fla.: 4.6 percent
4. Las Vegas, Nev.: 5.4 percent
5. Honolulu, Hawaii.: 5.6 percent
6. Memphis, Tenn.: 6.1 percent
7. Sioux Falls, S.D.: 6.3 percent
8. Fargo, N.D.: 6.3 percent
9. Houston, Texas: 6.3 percent
10. Billings, Mont.: 6.7 percent
Not surprisingly, seven of the top 10 cities above are in states with no income tax.
Source: Kiplinger Personal Finance (05/07)
Posted by your local Anne Arundel County Realtor
Saturday, May 5, 2007
Condo Market in Hawaii
Less Condominiums sold in April of 2007 than April of 2006. But condominiums that do sell - sell for more.
The condominium market on Oahu reached a median price of $325,000 in April, 9.6 percent higher than a year ago.
Condo sales fell, however, by 9.8 percent to 527.
Posted by your local Anne Arundel County Realtor.
The condominium market on Oahu reached a median price of $325,000 in April, 9.6 percent higher than a year ago.
Condo sales fell, however, by 9.8 percent to 527.
Posted by your local Anne Arundel County Realtor.
Condominium Company converts local development
MAY 03, 2007 -- Alexandria, Va. -- Orion Residential, a Chicago-based multifamily investment and condominium conversion company, has announced the closeout of the condo component of EOS twenty-one, a multifamily development in Alexandria, Va. EOS twenty-one, which also includes apartments, is the company’s first venture into the Washington, D.C. metro area condominium market.
The condos were priced from the upper $100,000s to low $300,000s. As part of the closeout of EOS twenty-one, Orion is offering four percent closing cost assistance, from $6,000 to $12,000, to purchasers who use their designated lender.
Studio, one- and two-bedroom units come equipped with air conditioning, modern appliances, secure entryways, garbage disposals, private patios or balconies, washers and dryers, oversized closets, cable hook-ups, and, in some homes, fireplaces. Pets are welcome.
The community includes a fitness center, dry-cleaning services, clubhouse, theater, coffee bar, onsite store and deli, as well as several pools. The complex also offers wellness classes as well as tanning, dry-cleaning, childcare and FLEXCAR services. In addition, EOS twenty-one is near restaurants, shopping, museums and entertainment.
The community’s apartments are being managed by the Bozzuto Group, based out of Greenbelt, Md. In the last 24 months, Orion has acquired in excess of $1 billion of multifamily assets.
The condos were priced from the upper $100,000s to low $300,000s. As part of the closeout of EOS twenty-one, Orion is offering four percent closing cost assistance, from $6,000 to $12,000, to purchasers who use their designated lender.
Studio, one- and two-bedroom units come equipped with air conditioning, modern appliances, secure entryways, garbage disposals, private patios or balconies, washers and dryers, oversized closets, cable hook-ups, and, in some homes, fireplaces. Pets are welcome.
The community includes a fitness center, dry-cleaning services, clubhouse, theater, coffee bar, onsite store and deli, as well as several pools. The complex also offers wellness classes as well as tanning, dry-cleaning, childcare and FLEXCAR services. In addition, EOS twenty-one is near restaurants, shopping, museums and entertainment.
The community’s apartments are being managed by the Bozzuto Group, based out of Greenbelt, Md. In the last 24 months, Orion has acquired in excess of $1 billion of multifamily assets.
Subscribe to:
Posts (Atom)