NAR: Commercial Index Eases Commercial real estate market activity is expected to decline moderately with fewer business opportunities for commercial practitioners in the months ahead, according to a forward-looking index for the commercial real estate sectors published by the NATIONAL ASSOCIATION OF REALTORS®.
The Commercial Leading Indicator for Brokerage Activity slipped 0.4 percent to an index of 120.1 in the fourth quarter from a reading of 120.6 in the third quarter. However, it remains 0.1 above the fourth quarter of 2006 when it stood at 119.9. This is the second straight quarterly dip in the index, after reaching a record of 120.7 in the second quarter of 2007.
The index showed nine consecutive quarterly gains prior to these declines; NAR’s track of the index dates back to 1990.Lawrence Yun, NAR chief economist, says the latest index suggests reduced business opportunities for commercial real estate practitioners in the months ahead. “The decline in the index implies that commercial activity, as measured by net absorption and the completion of new commercial buildings, is likely to contract moderately over the next six to nine months, which is consistent with an expectation for slower overall economic expansion in upcoming quarters,” Yun says.
Rising unemployment insurance claims and falling durable goods shipments were the key factors in lowering the CLI, but a weaker rate of return on investment as measured by the NAREIT Price Index was also a factor. However, positive contributors to the index were seen in the growth in wholesale and retail trade, and rising personal income, according to NAR.The latest data imply that investment in private nonresidential structures, which rose a solid 13.2 percent in 2007 according to a preliminary GDP estimate, could show only minimal growth or even decline in 2008, Yun says The Commercial Leading Indicator also implies weakening activity for commercial leasing and building sales activity. “Commercial practitioners can anticipate a weaker, though positive, net absorption in the office and industrial sectors later in the year with fewer new commercial buildings reaching the market,” Yun says. The index is a tool to assess market behavior in major commercial real estate sectors, which incorporates 13 variables that reflect future commercial real estate activity.
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Marina Vialtsina
Showing posts with label percent. Show all posts
Showing posts with label percent. Show all posts
Saturday, February 23, 2008
Wednesday, October 24, 2007
Economists: Utah home sales market solid despite numerous challenges
Article from Salt Lake Tribune:
(Please call me for individual Home Evaluation. From my experience, everything depends from certain area and price range. I am always available on 801-649-5883 or marinav30@yahoo.com, Thanks, Marina)
Economists: Utah home sales market solid despite numerous challenges
By Lesley Mitchell The Salt Lake Tribune
Article Last Updated: 10/23/2007 07:48:26 AM MDT
After years of increases, home sales along the Wasatch Front were down sharply in the third quarter, compared with last year, while prices increased at a slower pace. In Salt Lake County, 2,712 homes changed hands in the July-August-September period, down 33.8 percent from the same three months last year, according to a new report by the Salt Lake Board of Realtors. Among other counties, Tooele had the biggest decline in sales, down 36.4 percent, followed by Utah County, down 33.9 percent. Sales in Davis County were down 24.3 percent, with Weber County, down 22.4 percent. The drops, at levels unseen in years, are in stark contrast to the steady increases in home sales seen since the early 2000s. "It's like we were speeding along at 150 miles per hour and now we're going the speed limit," said Gary Cannon, president of the Salt Lake Board of Realtors. "The market is just slower now, and we just need to get used to it." Slower sales have led to slower appreciation, which is tilting the landscape in favor of buyers. Median selling prices, which had been increasing in many areas along the Wasatch Front in excess of 20 percent in 2006 when compared with 2005, are rising at a lower rate this year. Price gains in Salt Lake County (read the remaining on http://www.sltrib.com/ci_7253946?source=email)
(Please call me for individual Home Evaluation. From my experience, everything depends from certain area and price range. I am always available on 801-649-5883 or marinav30@yahoo.com, Thanks, Marina)
Economists: Utah home sales market solid despite numerous challenges
By Lesley Mitchell The Salt Lake Tribune
Article Last Updated: 10/23/2007 07:48:26 AM MDT
After years of increases, home sales along the Wasatch Front were down sharply in the third quarter, compared with last year, while prices increased at a slower pace. In Salt Lake County, 2,712 homes changed hands in the July-August-September period, down 33.8 percent from the same three months last year, according to a new report by the Salt Lake Board of Realtors. Among other counties, Tooele had the biggest decline in sales, down 36.4 percent, followed by Utah County, down 33.9 percent. Sales in Davis County were down 24.3 percent, with Weber County, down 22.4 percent. The drops, at levels unseen in years, are in stark contrast to the steady increases in home sales seen since the early 2000s. "It's like we were speeding along at 150 miles per hour and now we're going the speed limit," said Gary Cannon, president of the Salt Lake Board of Realtors. "The market is just slower now, and we just need to get used to it." Slower sales have led to slower appreciation, which is tilting the landscape in favor of buyers. Median selling prices, which had been increasing in many areas along the Wasatch Front in excess of 20 percent in 2006 when compared with 2005, are rising at a lower rate this year. Price gains in Salt Lake County (read the remaining on http://www.sltrib.com/ci_7253946?source=email)
Tuesday, September 18, 2007
As property values go up, appeals surge-Desert News
The hullabaloo over assessed property values means more paperwork for county assessors in Davis, Salt Lake and Utah counties.
And it also means the Utah Legislature's Revenue and Taxation Interim Committee has scheduled a public hearing Wednesday at 3:30 p.m. to discuss the impact property taxes had on Utah residents this year.
As of 5 p.m. Monday, the deadline for property value appeals, landowners in Utah's three largest counties had filed 11,426 appeals — 4,047 more than they did in 2006.
That number is small compared to the total number of properties in each county, but the number of appeals is expected to rise this week as mailed appeals trickle in. But they must have been postmarked by Monday at 5 p.m.
The number of requests for tax appeal hearings more than doubled in Utah County this year.
Requests started pouring in over the phone at 8 a.m. Monday, until a clerk in the auditor's office shut down the system at 5 p.m. By that time, the number of hearing requests had skyrocketed to 3,026. Last year's count was 1,062.
In Davis County, appeal requests came in spurts, said Jonathan Lee, chief deputy in the clerk/auditor's office.
But from 4 to 5 p.m. there was a steady stream of property owners — most from Bountiful — who dropped off their forms with comparable home sale prices attached.
Larry Wilcox, who lives in Bountiful, was the last person to file in Farmington in person on Monday.
He said his property value increased 47 percent over last year's assessment, and he doesn't believe the market value placed on his 17-year-old home is accurate.
Wilcox, who still works and has paid off his home, said he doesn't believe the tax burden on himself is as bad as for people who are retired and live on fixed incomes.
"Something should be done," he said. "(The tax rate) ought to be adjusted down the road. Cap it at some point."
That way, he said, once someone's income is fixed, his expenses are fixed, as well.
It was easy to find similar stories and hear pleas to government officials to improve the methodology for collecting property taxes.
On average, Davis County's residential property values increased 19.5 percent, but Bountiful saw the highest increase in values in the county: 30.5 percent.
Even Davis County Assessor Jim Ivie, a Bountiful resident, appealed his value.
Appeals are a way to ensure the county has the most accurate information, Ivie said.
Salt Lake County's property values are the highest that Salt Lake County Assessor Lee Gardner has ever seen, with an average increase of 22.3 percent over past year.
But the rising property values didn't follow that same trend when it comes to appeals, said Liz Fehrmann, Salt Lake County assistant tax administrator. Approximately 6,500 property owners appealed their appraisal value this year. The county received more than 7,600 appeals in 2001, Fehrmann said.
Fehrmann believes appeals didn't reach a new high because "values are underassessed in a great deal of the county."
Appraisals are based on market values in January. Things have changed in eight months, and the market "has cooled somewhat," Salt Lake County Assessor Lee Gardner said. That's why a lot of people appeal, he said. Property owners won't see the cooling off until next year's tax notices are mailed, because those will rely on market data in January 2008.
"It's not surprising," Gardner said of the appeals. "That's natural when you see a significant increase in property values. People will look at the value and go, 'Whoa, I need to appeal,' without really seeing if it's indicative of what the market is."
Each hearing can deal with one parcel or 300, so it's hard to tell exactly how many properties will be appealed. But Utah County Assessor Kris Poulson says this year's numbers could have been worse.
"If you think about it, (the requests for appeals) are about 2 percent of the taxable parcels we have," Poulson said. "That's not extremely bad."
Poulson said there is about a 5 percent margin of error on this year's valuations, and some valuations have incorrect information. For example, the county has had multiple complaints from residents who have vaulted ceilings in their homes that were counted as a second story.
Although the deadline for scheduling an appeal has passed, residents can still contact the assessor's office if the information on their notice is incorrect, Poulson said.
"If our data is wrong, that could be why our value is wrong," Poulson said. "There are areas that we haven't had a chance to review yet, but I would say, out of 20 homes that we look at, probably 18 or 19 will be (correct)."
And it also means the Utah Legislature's Revenue and Taxation Interim Committee has scheduled a public hearing Wednesday at 3:30 p.m. to discuss the impact property taxes had on Utah residents this year.
As of 5 p.m. Monday, the deadline for property value appeals, landowners in Utah's three largest counties had filed 11,426 appeals — 4,047 more than they did in 2006.
That number is small compared to the total number of properties in each county, but the number of appeals is expected to rise this week as mailed appeals trickle in. But they must have been postmarked by Monday at 5 p.m.
The number of requests for tax appeal hearings more than doubled in Utah County this year.
Requests started pouring in over the phone at 8 a.m. Monday, until a clerk in the auditor's office shut down the system at 5 p.m. By that time, the number of hearing requests had skyrocketed to 3,026. Last year's count was 1,062.
In Davis County, appeal requests came in spurts, said Jonathan Lee, chief deputy in the clerk/auditor's office.
But from 4 to 5 p.m. there was a steady stream of property owners — most from Bountiful — who dropped off their forms with comparable home sale prices attached.
Larry Wilcox, who lives in Bountiful, was the last person to file in Farmington in person on Monday.
He said his property value increased 47 percent over last year's assessment, and he doesn't believe the market value placed on his 17-year-old home is accurate.
Wilcox, who still works and has paid off his home, said he doesn't believe the tax burden on himself is as bad as for people who are retired and live on fixed incomes.
"Something should be done," he said. "(The tax rate) ought to be adjusted down the road. Cap it at some point."
That way, he said, once someone's income is fixed, his expenses are fixed, as well.
It was easy to find similar stories and hear pleas to government officials to improve the methodology for collecting property taxes.
On average, Davis County's residential property values increased 19.5 percent, but Bountiful saw the highest increase in values in the county: 30.5 percent.
Even Davis County Assessor Jim Ivie, a Bountiful resident, appealed his value.
Appeals are a way to ensure the county has the most accurate information, Ivie said.
Salt Lake County's property values are the highest that Salt Lake County Assessor Lee Gardner has ever seen, with an average increase of 22.3 percent over past year.
But the rising property values didn't follow that same trend when it comes to appeals, said Liz Fehrmann, Salt Lake County assistant tax administrator. Approximately 6,500 property owners appealed their appraisal value this year. The county received more than 7,600 appeals in 2001, Fehrmann said.
Fehrmann believes appeals didn't reach a new high because "values are underassessed in a great deal of the county."
Appraisals are based on market values in January. Things have changed in eight months, and the market "has cooled somewhat," Salt Lake County Assessor Lee Gardner said. That's why a lot of people appeal, he said. Property owners won't see the cooling off until next year's tax notices are mailed, because those will rely on market data in January 2008.
"It's not surprising," Gardner said of the appeals. "That's natural when you see a significant increase in property values. People will look at the value and go, 'Whoa, I need to appeal,' without really seeing if it's indicative of what the market is."
Each hearing can deal with one parcel or 300, so it's hard to tell exactly how many properties will be appealed. But Utah County Assessor Kris Poulson says this year's numbers could have been worse.
"If you think about it, (the requests for appeals) are about 2 percent of the taxable parcels we have," Poulson said. "That's not extremely bad."
Poulson said there is about a 5 percent margin of error on this year's valuations, and some valuations have incorrect information. For example, the county has had multiple complaints from residents who have vaulted ceilings in their homes that were counted as a second story.
Although the deadline for scheduling an appeal has passed, residents can still contact the assessor's office if the information on their notice is incorrect, Poulson said.
"If our data is wrong, that could be why our value is wrong," Poulson said. "There are areas that we haven't had a chance to review yet, but I would say, out of 20 homes that we look at, probably 18 or 19 will be (correct)."
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