Tag Archives: real

Franklin County Auditor Confirms Zero Increase in Tax Valuation This Year!

Tony and I returned from vacation on Sunday. On Monday, I tackled a mountain of mail being held by the post office. The item I was most interested in was the notice from Joe Testa’s office (Franklin County Auditor) announcing the proposed valuation of our home for 2008. Yours was probably just like mine – it shows no increase in valuation from 2007.

2008 is the year for the triennial update of property valuation in Franklin County. While we saw gains in the local real estate market in both 2005 and 2006, we’ve basically given it all back in 2007 and 2008. As a result, property valuations will remain at their previous level rather than increase as they usually do every 3 years. This should mean a zero tax increase for homeowners. However, New Albany has several levies on the ballot in November which will raise taxes slightly but the increase will be based on the valuations set 3 years ago.

Because there have been some dramatic shifts in the real estate market, you may still feel that your home is overvalued. If so, there is an opportunity to meet with representatives from the auditor’s office during the next month to discuss your valuation or to petition for a reduction in your home’s valuation. The review in New Albany will take place Thursday, August 28th at Church of the Resurrection, 6300 E Dublin Granville Road, New Albany, 2pm – 8pm. Call the auditor’s office at 614-462-4663 to schedule a time for your review.

Please let us know if you would like our office to provide you comparable sales information that you might use to justify a reduction. We are happy to do that as a service to our clients as well as to those who may become new clients some day! You can call me at 614-939-8945 or by email at katet@newalbanyrealty.com.

Look for The Silver Lining! You Can Buy A Lot of House in Columbus, Ohio!

I just read an article in the Wall Street Journal real estate newsletter which really helped to put a new spin on real estate in New Albany, Columbus and the Midwest as a whole. We keep hearing about how bad the real estate market is but think about what you can actually buy here versus some other parts of the country.

Using $400,000 as a comparison:

In New Albany, you can buy a 3600 square foot home overlooking a golf course, with a screen porch, a finished recreation room in the lower level, 4 bedrooms, 3.5 baths and a 3 car garage.

In New York City, that same $400,000 will buy a 400 square foot studio apartment on the Upper East Side with a queen size Murphy bed, a new kitchen with granite and stainless steel appliances, hardwood floors, a doorman and a bike room.

For $400,000 in Miami Beach you can buy a 1520 square foot condo with 2 bedrooms, 2 baths that 1,520-square-foot condominium. The condo, built in 1963, has bay views from every room, wood floors, kitchen appliances in mint condition and a parking space.

So, while prices on real estate in New Albany are off the peak of the market, your housing dollars still go a long way. It really is a good time to buy a home! Contact Kate or Tony to discuss home buying options in New Albany or the Greater Columbus area.

Absorption Rate in New Albany

Yes, absorption is the correct term for Sponge Bob’s ability to soak up water and the same holds true in the real estate industry. In real estate, the absorption rate is the amount of time, generally expressed in months, that it will take a market to “absorb” the current inventory based on recent history. In other industries, this measurement may be called turnover rate or simply weeks or months of supply.

As I’m sure most of you know, Kate and I have a background in retail where you live and die by turnover rate. If the inventory is turning too fast, you’re going to run out of stock and have empty shelves; too slow and it’s time to pull out the red pen and take a mark down!

In real estate, you often hear references to it being a Buyer’s Market or a Seller’s Market. The National Association of REALTORs suggests that a market is in balance when there is a 7-9 month absorption rate. When inventory is six months or less – it’s a seller’s market as there is more demand than inventory. Homes sell quickly and for close to or sometimes above list price. When the months of supply exceed 9 months, it’s considered a buyer’s market. Homes take longer to sell and the list price sales price ratio slides.

How do you figure the absorption rate? It’s a simple formula:

Inventory ÷ # Units Sold x Time = Absorption Rate

For example, if the market you are evaluating (subset) has 12 homes on the market and 6 homes sold in the past six months, the absorption rate would be 12 months.

The key is to understand the subset. In New Albany, there are many subsets, defined by price, neighborhood, age, location etc. Remember, real estate is local…very local. The absorption rate of a $1M brick home has little to do with understanding the market or absorption rate for a $400,000 vinyl sided home in a different neighborhood.

If you are interested in the absorption rate in your neighborhood, try out our free MLS Market Snapshot feature and have a look. Of course you can always drop me an email at tonyt@newalbanyrealty.com or call 614-939-1234 and I can run some quick numbers for you.

National Real Estate News Is About As Useful As A National Weather Forecast

National Real Estate Scenarios Don’t Apply to Columbus, Ohio!

I just read an article from the Wall Street Journal’s “Real Estate Journal Today” – an online service sponsored by www.WSJ.com. The head line reads “Kimmel Home Listed for $81.5 Million“. That headline will definitely catch your attention, but is it really relevant in Columbus Ohio? I don’t think so. This article is perhaps good fodder for “Entertainment Nightly” but is in no way reflective of the actual real estate industry in New Albany, Ohio. The article goes on to talk about a home where a $3 million price reduction did not generate a sale.

The media would have you believe that since the luxury real estate market in Palm Beach, New York City, and Los Angeles is experiencing a necessary and significant correction, that it follows suit that we should experience the same correction in Columbus. When the Columbus Board of Realtors recently polled some of it’s members with the question “How’s the Housing Market”, one of the most perceptive responses came from Louise Potter with Keller Williams when she said:

“Our market is a matter of perspective vs. media spin. Interest rates are incredibly low and falling, 5.5% today, the supply is showing signs of realigning with demand and there are great opportunities to invest and own homes…the long term picture in our market is one of stability and conservative growth.”

As we know, not all markets in the country are seeing positive signs of a recovery but in New Albany, Ohio we don’t have a huge correction to recover from. As a matter of fact, I was recently working on a market analysis for a potential seller and in doing my research, there was only a 4.5 month supply of homes in their home’s price range which is very good news for that seller.

I guess my point is, get the local real estate facts as it applies to your home and don’t rely on the media for your information. Tony and I are always available to consult with and can help you put your home into the proper real estate perspective.

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