Saturday, March 31, 2007

Ohio City, Tremont Homes Sold in March 2007

This is for all of zip code 44113. The single family homes that sold were town homes (single family because they are owned in full by the owners, and are not condominium complexes). One was in Clarence Court and four were in Bergen Village.

There were Five single family town homes sold between the prices of $218,233 and $$465,873. The average length of time they were on the market was 187 days. The average Ask Price was $348,360 and the average Sale Price was $375,173 (new construction, so with add-ons or upgrades, the prices can go up). The five town homes averaged 2 Brs, 2 Baths and a 2 car garage.

There were two condominiums sold in March between the prices of $107,000 (for one in Grove Court, near the West Side Market) and $547,500 (in Stonebridge). They were on the market for 91 days or three months.

To put things in a bit of perspective: there are 70 condos for sale in zip code 44113 and 92 single family homes.

Peace Out - 3C


Tim Ferris said...

Can we parse this further? How many of the new sales were tax-abated? How much tax actually was abated for these properties, in dollars per year over 15 years? How many of the unsold properties offer tax abatement? Do the high-priced tax-abated homes have a competitive advantage in the marketplace, especially in a slowing market? Do the average valuations of the older homes go up when these larger new sales occur, and do the ours and our neighbors' higher valuations compensate for what is given the people in the new houses?

Cleveland Carole Cohen 3C said...

The one thing for sure, the Clarence Court and Bergen Village Sales were tax abated. The Stonebridge sale may have been, the Grove Court sale would not have been. So almost all the sales from March were abated. The Maxine Goodman Levin College of Urban Affairs sponsored a study and it was done by Thomas Bier, Abigail Horn and a few others; they studied the tax abatement issue and it was called 'Cleveland's Residential Tax Abatement Study: Its Impact, Effects and Value.' They found evidence that a majority of people who moved in from other areas TO Cleveland did so based on the tax abatement offered.

They also have charts in the study that show higher investment market values for resale homes surrounding abated property.

I tried to find a link to the report (I have it so you must be able to request it) but could not.

I guess I am not doubting the value of the abatement up to this point; I'm feeling as if abatement needs to occur now, only if it can truly be seen as continuing to further the good - areas that are still grossly under revitalized, projects near transportation, etc.

Your last question - I don't have the answer. It might be in the report but I have only had it a week. It came out in February. I don't know if we can really, as a City, afford to lose the taxes on a broad scale, just because something is new construction. Maybe City Planners will deem otherwise. So some of your questions I can answer, others not. Good question Tim. And unless our City can show us that 20 yrs of abatement has helped us more than hurt us (loss of taxes) then I think they better reconsider the plan.

Cleveland Carole Cohen 3C said...

One more question I missed; the abatement is for 15 years on new property; Bergen is new; Clarence is new; so the dwelling portion of the taxes is fully abated for 15 years. This was true of a lot of the other new construction that built up Tremont and Ohio City. Some of these projects are at the end of their abatement period by now.