pf_03313 - Laserfiche WebLink

Home

Specific Findings · The homes that were sold in the subject areas around the 12 tax-credit developments in our study, in general, displayed similar or stronger market performance in the period after the tax-credit properties were built, as well as similar or stronger performance to comparable homes sales from a control group. We identified generally upward price trends, declining market'times and stable or improving sales-to~Jist price percentages in most submarkets, over the six-year study period. ~,' .~:' · Some subject areas displayed poorer market performance after construction of the {,ax- credit development in question as compared to before it, or poorer performance as . . compared to a comparable control group. However, such poorer performance was almost always limited to one year, or isolated among one group of homes in a subject area; there was little to suggest that there was a sustained, negative, post-construction trend in any given neighborhood surrounding a tax-credit development in this study. '. . As a group, the subject areas hadfar higher average annual per-square-foot price appreciation after the tax-credit developments were built than before: 5.9% versus .9%. Housing style did not make a difference, as significantly superior growth in the post- construction period occurred among both townh'omes and single-family homes in the subject areas, collectively. (Figure 1) ; · The ability for sellers to gain the prices they asked for was not impeded in the years after' the construction of the tax-credit developments under study, as sales-to-list price percentages among homes sold in the subject areas were generally higher in the post- construction period than in the pre-construction period. (Figure 2) · Market times for homes sold in the collective subject areas were shorter in the post- construction years than in the pre-construction years, with the exception of single-family homes in period post-2, which showed a 24-day jump over the previous year. In this case, the jump in market time did not exceed the low point from the pre-construction period. This suggests that the market, in terms of selling time, varied in similar fashion before and after tax-credit housing construction. (Figure 3) · We found that the subject areas, as a group, exhibited slower average sales price growth in the pre-construction years than the Twin Cities Metro Area overall (2.95% versus 4.23%). However, after construction, the gap in performance between the subject areas and the Twin Cities narrowed by a half percentage point. This indicates that, rather than weakening after construction, the markets surrounding the tax-credit developments became stronger as a group, relative to the Twin Cities overall. · The subject areas performed similar to their respective control markets, as revealed in the subject-control comparison. Of the roughly 1,400 market-performance measurements we completed in the subject areas in the post-construction years, 96% fell within the range of values of similar age and size control group peers from the respective larger market. Just MAXFIELD RESEARCH INC. 2