* Creative way to promote the downtown
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* Downtown
Milwaukee Condo | Historic Water Tower District @ Wyoming Place | 169K | 2 BR,
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* Still looking for our next home. Anyone have a condo in
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MKE Real Estate Market: 2011 Analysis. 2012 Outlook. Interested in Milwaukee’s Real Estate Market?http://ht.ly/8f8di
My wife and I believe this is a good time to buy. Looking at a few condos next week. Great post:http://ht.ly/8bcXK
Mortgage rates continue to bounce around 4%. Have you considered refinancing your loan to lock-in at a lower rate? Leave a comment for more information.
Bicycling magazine’s Top 50 bike-friendly cities includes Madison #7, Milwaukee #25 |http://ht.ly/7qB2B
Kiplinger: 2012 Predictions - Home prices stabilize, rates remain low, sales increases, foreclosures remain an issue.http://ht.ly/8cD5y
Most affordable 2 BR condos in/around Downtown MKE (w/ Parking) | Indoor parking, #2 is a deal|http://ht.ly/8ksr1
Most to least expensive metro areas for homeownership - Q3 '11: #46 Madison, #90 MKE, #130 Green Bay, #170 Appleton.http://ht.ly/82zCa
Homeowners facing default on their mtg likely to become renters. Expand your portfolio of income-generating properties.http://ht.ly/7iZP7
Leave a comment if you need assistance w/ a real estate need. I can put you in touch with a quality agent...almost anywhere.http://ht.ly/7qBg4
Please share a comment if you have any questions regarding the real estate market.
Downtown Milwaukee Condo Market: Looking Back on 2011
The real estate market continues to keep me on my toes. The word I would use to describe the real estate market in 2011: Encouraging.
In this year-in-review analysis, I will explore fair market values, inventory levels, sales activity, and mortgage rates. I will also share my thoughts on the real estate market for 2012.
To begin, I will analyze fair market values (FMV) in the Downtown Milwaukee condominium market. Although this analysis pertains to one specific segment in Milwaukee Metro, this analysis can be used to review other segments.
Downtown Milwaukee is comprised of several neighborhood markets: Bay View, Brewers Hill, East Town, Halyard Park, Lower East Side, Riverwest, Third Ward, Upper East Side, Walker's Point, and Westown.
Since January 2008, Average Fair Market Value or AFMV (on a price-per-square-foot basis) declined during two distinct periods throughout Downtown Milwaukee: March 2009 - March 2010 and January 2011 - December 2011. The real estate market experienced a short-term spike between March 2010 and June 2010. If you recall, the final deadline for the First-Time Home Buyer Tax Credit expired in April 2010 (closed no later than June 30, 2010) which accelerated sales transactions in 2010.
Location, Location, Location: Not surprisingly, the affordability index increases the further away you move from the center of Downtown Milwaukee. The AFMV is highest in Milwaukee's East Town, Lower East Side, Third Ward, and Walker's Point neighborhoods. The AFMV is lowest in Milwaukee's Bay View, Brewer's Hill, Halyard Park, Riverwest, Upper East Side, and Westown neighborhoods. The Third Ward remains one of the most desirable neighborhoods in Downtown Milwaukee (hence, the highest AFMV).
During 2011, AFMV declined slightly for all neighborhoods in Downtown Milwaukee. This slight decline suggests that AFMV is beginning to level off. Why are fair market values leveling off?
One factor that influences FMV is supply. In real estate, supply includes "Active Listings". In this analysis, I researched the condominium market in the 53202 zip code (includes East Town, Lower East Side, and Third Ward neighborhoods). Between January 2010 and September 2010, Active Listings was holding steady around 500 per month. Since September 2010, inventory of condominium units in 53202 has been steadily declining. Since June 2011, fewer sellers entered the market which is limiting our available inventory.
Another factor affecting supply is sales activity. Since January 2010, condominium units have been selling at a constant rate each month (between 15-25 units per month). Flat sales activity during this analysis (January 2010 - December 2011) suggests that buyers are purchasing condominium units regardless of mortgage rates, first-time home buyer credits, etc. Notice that "Sold Listings" matched "New Listings" in December 2011. This suggests that the pendulum is moving closer to a balanced market.
Sales activity remains constant. New listings are decreasing. Based on these two factors, overall supply is decreasing which is causing FMV to level off. Why are listings decreasing? Based on my knowledge of this market segment, prospective sellers are either staying in their condominium units and waiting for prices to improve or are choosing to rent their condominium units and waiting for prices to improve. Either way, today's prospective seller is choosing to wait for the market to improve.
At one point in time, inventory levels for condominium units in 53202 peaked at 58 months worth of inventory (November 2010). This is a highly-skewed Buyer's Market. In other words, it would take the market 58 months to sell off the inventory levels reported at that point in time. The market experienced a dip in FMV during this period as supply significantly outweighed demand. Since December 2010, inventory levels have declined between 14 and 30 months of inventory. This is still a Buyer's Market; but much more balanced than 2010 levels.
Suggestions for Buyers: Keep an eye on mortgage rates. With FMV leveling off, buyers should focus on the stock market, bond market, and mortgage rates. Mortgage rates were fairly flat between January 2009 and March 2010; declined between April 2010 and November 2010; increased quickly in December 2010; remained flat between December 2010 and April 2011; and decreased steadily since May 2011 to our lowest level reported in December 2011.
Since August 2011, rates have been bouncing around 4.000% - showing greater instability. Fluctuations in mortgage rates are due to economic conditions - here and abroad. Keep an eye on economic situations in Europe. Is consumer confidence showing strength here in the U.S.? Are investors moving money from bonds to safer investments like stocks? If investors choose to move money into stocks, look out for mortgage rates to increase.
Supply: I expect inventory levels will increase during our traditional "busy season". I expect banks will add more foreclosures to our inventory levels. I expect more Short Sales will appear on our books as well.
Demand: I expect that sales activity will remain constant throughout 2012.
Fair Market Values: I expect FMV will decline slightly in 2012 - continuing to show signs of leveling off. Distressed properties (i.e. foreclosures, Short Sales) will continue to keep FMV flat during 2012.
Wildcard: Mortgage rates. Buyers who are in the market to purchase real estate should be cognizant of mortgage rates. Historically, mortgage rates spike high and fast once consumer confidence returns. For those who are timing the market, I expect mortgage rates will remain fairly flat during the first half of 2012.
Do you have any questions regarding the real estate market? Feel free to leave a comment? May you and your family enjoy a prosperous 2012!
During my morning analysis of the real estate market in Milwaukee County, I noticed that many sellers decided to let their listing contracts expire as of midnight on November 30. This tells me that sellers aren't confident that a market exists during the month of December.
Does the real estate market shut down in December?
I reviewed Metro Multiple Listing Service data covering 2008, 2009, 2010, and year-to-date 2011. This analysis doesn't indicate those deals that closed in a particular month. I'm more concerned about those months when offers were accepted. In other words, are buyers less likely to write offers in December than any other month during the year?
The 2008 and 2009 years indicated "normal" activity. I wasn't too surprised to see that we experienced slower activity during the winter months. Our peak months includes May (2008) and June (2009). In 2010, we encouraged first-time home buyers to act earlier in the year; which explains why our market peaked in April.
In every case, December was our slowest month of the year. However, 455 buyers were successful in negotiating an acceptable offer in December 2007, 475 in December 2008 (5.68% of 2008 Sales), 453 in December 2009 (4.95% of 2009 Sales), and 447 in December 2010 (5.89% of 2010 Sales).
Below, please find a chart showing Pending Activity for all of Milwaukee County between the years 2008 and November 2011.
For those sellers who decided to give the market a rest last night, why wouldn't you try to attract a buyer in December?
Great Location, High-End Finishes, Affordable Price @ Cambridge Terrace | Downtown Milwaukee, Lower East Side
Great location, high-end finishes, affordable price! Located near the heart of the East Side.Appreciate the proximity to shops, dining, nightlife, bike paths, river, & lakefront.South-facing unit is one of the largest units in building with space for a dining room table. Kitchen is the focal point with many high-end finishes: Granite, stainless-steel, maple, ceramic tile, laminate floors, & additional work space. Bath features ceramic tile floors. Newer lighting fixtures & windows, & new carpeting. Never worry about parking with your one indoor parking space. Need a 2nd space? Lot next door offers parking for rent. Dues include heat!Video phone security, common patio overlooking the river, storage locker, & on-site laundry. Pet-friendly association.
FOR MORE INFORMATION (PIN: 49914)
* 24-Hour, Bi-Lingual Hotline: (262) 814-1400 * Mobile Site: http://goswr.com
Spacious Soft Loft @ Kane Place Lofts | Downtown Milwaukee, Lower East Side
Located just north of Brady Street and near Milwaukee River, you will find Kane Place Lofts. Great room is warm and inviting with new maple hardwood floors, gas fireplace, and built-in shelves/cabinets.Sliding glass doors with Transom windows lead to your oversized balcony.The chef will appreciate the spacious, updated kitchen featuring granite, stainless-steel appliances and under-mounted sink, and breakfast bar with pendant lighting.Master suite features walk-in-closet and spacious master bath with ceramic tile floors, floor-to-ceiling tile surround in shower stall, and double-vanity.Ample storage throughout including utility room with full-size washer and dryer, and storage room (9x6) located directly across hall. One indoor parking space in heated garage.Free home warranty.Pet-friendly association.
FOR MORE INFORMAION (PIN: TBD)
* 24-Hour, Bi-Lingual Hotline: (262) 814-1400 * Mobile Site: http://goswr.com
Cooper Park Cape Cod | Updated & Well-Maintained (Near Mount Mary)
Cooper Park Cape Cod has experienced a facelift for you.Nearly every window has been replaced (‘10), refinished hardwood floors (‘11), new carpeting and padding (’11), fresh paint (’11), new drywall (’11), additional insulation added (’10), water heater (’05), and security system (’09).Enjoy the afternoon sunlight through the bay window.The kitchen opens up to the bright dinette.The kitchen features recessed lighting, newer cabinets, and new refrigerator (’08).The second floor includes a spacious bedroom that features new carpeting, built-in cabinets, and skylights.Other amenities include:two-car garage plus parking slab for a third vehicle, electric garage door opener, and central air.Seller is offering a HSA Home Warranty at closing - Free!
FOR MORE INFORMATION (PIN: 29384):
* 24-Hour, Bi-Lingual Hotline: (262) 814-1400 * Mobile Site: http://goswr.com
Blog dedicated to news and information about Milwaukee's growing condo market. Information maintained by David Ray of Shorewest Realtors, specializing in condos in Milwaukee's downtown, East Side, Third Ward, Brewer's Hill, and Walker's Point. For more information about buying or selling real estate in Milwaukee, please contact David Ray at 414.961.8314 X148, dray@shorewest.com, or DavidKnowsDowntown.com.
Real Estate Broker Associate / Realtor® / CSRS / CPA ***** I am a lifetime resident of metro Milwaukee Area. I enjoy the restaurants, activities, events, and nightlife in Milwaukee's downtown and surrounding areas including the East Side, Third Ward, and Walker's Point. I am a Real Estate Broker Associate, Realtor®, and Certified Shorewest Relocation Specialist specializing in the downtown Milwaukee condominium market, although I represent buyers and sellers through the greater Milwaukee area. When not listing, showing, or selling real estate, I enjoy walking my two Shiba Inus (a Japanese breed) and relaxing with family and friends.
