JSOnline: City sets pace in home values - 5-year rise exceeds those of state, suburbs
The truth about today's real estate market!Economics 101- Increase in property values (great news for sellers)
- Increase in competition (great news for buyers)
Recently, the U.S. Census Bureau reported that the real estate market in Wisconsin is still showing signs of growth.
In southeastern Wisconsin, although property values continue to climb, the rate of home sales have declined. Declining sales mean greater quantities of inventory for buyers to choose from. Assuming that homeowners who were planning to sell their homes in the near future decide to wait, it would still take approximately seven months to sell off our current inventory. Greater quantities of inventory mean greater competition for the same number of buyers. Greater amount of competition means that sellers must provide additional incentives for buyers to purchase their home.
The media has portrayed this phenomenon as the busted bubble. The real estate bubble has not popped. Sellers are still walking away with more money in their pockets than what they originally paid for their home. If this situation was the other way around, then yes, the bubble has popped.
What does this mean to you? Again, the bubble has not popped. The Midwest, especially Milwaukee, has seen modest annual price increases in real estate. Unlike the more aggressively-priced markets (e.g. California and the East Coast), Milwaukee will continue to experience positive sales growth. In fact, the U.S. Census Bureau recently reported that Milwaukee home values continue to boom - almost matching the nation's 32% price run-up since 2000. Its mid-decade American Community Survey shows the U.S. median home value rising from an inflation-adjusted $126,733 to $167,500 from 2000 to 2005.
In the numbers With the inflation adjustment, Milwaukee home values climbed from a median $79,600 in 2000 (equivalent of $90,232 in 2005 dollars) to $119,000 last year, a 31.9% increase that outpaced the percentage gains in most other Wisconsin municipalities. In comparison, Wisconsin (as a whole) saw median values climb 22.5% during the same period.
Michele Derus and Mike Johnson of the Milwaukee Journal Sentinel writes more about our today's real estate market.
Click here for more information about our local real estate market – and how it compares to other parts of our state and the country>>>
Milwaukee Journal Sentinel (Print Edition, Sunday, October 1, 2006): Tactics for today’s market: Homeowners getting back to pricing basics in effort
Selling Your Home - Tip #1: PricingSellers, the toughest decision you will be faced with is how to appropriately price your home. In today's buyers market, pricing is more important than ever. Sandra Fleishman of the Washington Post provides sellers with several important tips in pricing their home.
Here are some facts about Milwaukee's current real estate market:Despite what you hear or read in the news, the
real estate bubble in our market has not busted. The fact is sellers are still able to walk away from their property with more money than what they originally paid. The Midwest, especially Milwaukee, has seen modest annual price increases in real estate. The hardest hit markets are the east and west coasts.
Despite the good news, we do find ourselves in a
buyers market. Sorry sellers. The good news is you will still make money on the sale of your home. The bad news is that it will take
considerably longer to sell your home. In fact, if all other homeowners were to wait to place their home on the market, it will still take an estimated seven months to sell off our current inventory.
What can you do to entice buyers to see your home...first?Experts agree that sellers must be
realistic in pricing their homes. Not only does the price have to be right, but the home must look
move-in ready.
Here are some other suggestions:1. Setting your asking price at or below your direct competition (such as your neighbor's home which is currently listed)Competitive pricing will increase the likelihood of reducing the number of days, weeks, or months your house sits on the market.
When determining your asking price in a dynamic market, it is a good idea to analyze your market’s performance by reviewing more recent home sales (1-2 months; not the traditional 6-month window).
It is also recommended that you review old appraisals or pay for an upfront appraisal of your home to find items that had or have a negative effect on your home’s value and correct those items (either by remodeling or replacing).
2. Be proactive; not reactiveIf you are not satisfied with the market’s reaction to your price, then reduce your asking price in a timely manner. As a general rule, if you don't see any traffic within the first 3 weeks upon entering the market, the market has rejected your price; and therefore, it is time for a price correction. If you price your home too low, you would expect to experience several appointments and offers within a short amount of time. Ideally, the most appropriate initial price will still encourage buyers to arrive at your front door and ponder their next move of drafting an offer.
3. Provide buyers with financial incentivesThere are several, inexpensive ways to assist buyers with purchasing your home. It is becoming more common to creatively structure the offers we write to include seller-assisted financing. Such an arrangement may include sellers paying the buyers' closing costs or paying down the buyers' interest rate. For condominium owners, sellers might entice buyers by offering to prepay their condominium dues for a period of time.
4. Today’s buyers are fussyIf there are any defects in your home, buyers will zero in on those first. Your home may have an unbelievable layout and tons of upgrades, and it can still fall short in today's market if a defect is found. With seven months of inventory, buyers are aware that they can hold off a little longer waiting for the home that has everything...without defects. In today's market, it is very important to make your home’s appearance stand out. This might mean that you have to paint walls or replace appliances.
5. Pay moreFinally, sellers might consider paying more in commission. I don’t mean to sound greedy, but a higher commission split will encourage selling agents to show your property…first. At the end of the day, this is the ideal situation.
Thinking of selling your home? Call me at (414) 412-7980 for a FREE complimentary Comparative Market Analysis.
Milwaukee Journal Sentinel (Print Edition, Sunday, October 1, 2006): Fact or fiction of selling points: Homeowners need to sort through the myths
Selling Your Home - Tip #2: StagingSellers, when you put your home on the market, it is very important to stage it well for showings. You only have one shot to impress buyers. If you are thinking of selling your home, this article is a must read. Kristi Gustafson of the Albany Times Union identifies several myths about marketing your home.
Myth: Red walls are a no-noRule: Be consistent. Bold colors are okay if the entire home is painted consistently. However, if the entire home is neutral except one room which is painted boldly, this room will most likely shock most buyers which will adversely affect the sale of your home.
Myth: Walls should be white and carpet should be “real estate beige” to appeal to a mass marketRule: Follow the character and design of your home. The following saying comes to mind: "You can please some of the people all of the time, all of the people some of the time; but, you will not please all of the people all of the time." By following this rule, the appearance of your home will benefit both you and the buyer.
Myth: Kitchens should be updated to resell homeRule: Upgrades should always maintain the home’s character and architectural style. Although buyers assign value to granite countertops and stainless steel appliances, these upgrades may be perceived out of place if they were found in a 1920's prairie-style home.
Myth: Modernizing a home helps resaleRule: Maintain the home's character and architectural style. Modernizing a 1950’s ranch will not enhance the property’s value.
Myth: Wallpaper has got to goRule: Maintain the home's character and architectural style. Similar to the topic of updating kitchens, wallpaper is fine if it keeps with the theme and character of the home. Wallpaper should be well-maintained (good, newer condition).
Myth: An addition to the home helps you sell itRule: Proper planning will go a long way. In many cases, additions are poorly planned and/or located, thus hurting the resale value. Most buyers assign value to a home with a decent-sized yard. Additions which take away yard-size could adversely affect the value of the home. Also, additions that are only accessible by going through a room (such as a bedroom) are not wise additions for resale purposes.
Are you thinking of selling your home and have concerns about staging and preparing your home for the marketplace? Please call me at (414) 412-7980 for staging suggestions.
JSOnline: Park East plan wins approval - County Board votes to sell downtown land for hotel, condos, offices
And the winner is... Ruvin Development Inc. and Dallas-based Gatehouse Capital Corporation. Ruvin's proposal features a 175-room luxury hotel, 70-unit condominium, 55,000 square feet of office space, 31,000 square feet of retail space, and a 330-car parking structure.
Ruvin's development will be built on a parcel bordered by North Old World Third and Fourth Streets, and West Juneau and West McKinley Avenues. Ruvin anticipates that construction will begin on the 20-story building within a year.
Tom Daykin of the Milwaukee Journal Sentinel writes more about this and other future developments within the Park East Redevelopment Project>>>
JSOnline: Progress on interchange makes going easier - New off-ramp, two-way traffic start this weekend
Have you noticed the changes to the Marquette Interchange? Here are the latest developments:
St. Paul AvenueThe last one-way stretch of St. Paul Avenue was recently converted to two-way traffic.
Plankinton Avenue RampThe new off-ramp was recently opened to traffic from northbound I-43/94 to North Plankinton Avenue. The original plans of the new interchange scrapped the idea of an off-ramp to Plankinton Avenue. As a result of upset business owners who complained about the loss of this ramp, the Department of Transportation agreed to include a Plankinton Avenue exit. The department designed this new ramp to help eliminate the weaving pattern the old ramp created; therefore, directing traffic to Plankinton Avenue from I-43 instead of I-794.
The return of three lanes on I-43By the middle of October, freeway traffic will be restored to three lanes each way both north and south of downtown
Larry Sandler of the Milwaukee Journal Sentinel writes more about upcoming changes in the Marquette Interchange Project>>>
WisDOT: Milwaukee intermodal terminal renovation
Downtown Milwaukee's Amtrak station is getting a makeover. With more than 500,000 passengers per year passing through this dated depot, the Wisconsin Department of Transportation has decided to give it a fresh new look.
Over $15 million have been put aside to rehabilitate the station. The new facilties will serve as a "gateway" to downtown Milwaukee and will be integrated with the design efforts of the department's Marquette Interchange Project.
Upon the project's completion date (estimated Fall 2007), the new terminal will be a multiple-use facility with the following features:
Transportation facilities
-Passenger rail
-Intercity and regional bus
-Transit
-Taxi, limousine
Retail and food service
Office space
Other development
Click here for updates on this project as important phases of construction are completed>>>
East Town: Gallery Night & Day
Mark your calendar! The final
Gallery Night & Day for 2006 will begin Friday night,
October 20 and will conclude Saturday afternoon,
October 21.
Presented by the East Town and Historic Third Ward Associations, this premier art event in Milwaukee is enjoyed by the experienced artist and beginning admirer. Between 50 and 70 venues throughout the downtown community participate in this quarterly event.
Free parking is available in the Historic Third Ward parking structures. Ride the Friday Night Gallery Night Xpress - free. The Xpress which will be running continuously every 15 minutes from 5pm to 9pm and makes stops at the Historic Third Ward, East Town, and Milwaukee Art Museum.
Click here for more information about this year’s final Gallery Night & Day>>>Here's What Else Is Happening in Downtown Milwaukee:· Comedy:
o Jim Gaffigan (Pabst Theater): October 26
o Carlos Mencia (Riverside Theater): October 28
o The Capitol Steps at The Pabst (Pabst Theater): October 28
· Community Events:
o Outdoor Seasonal Farmers’ Market (Milwaukee Public Market): Oct. 15-29
o Riverwest Gardeners Market (Garden Park): October 15-29
o Westown Farmers’ Market: October 18 & 25
o Downtown Yard Sale (Cathedral Square Park): October 21
o Harvest Wine Tasting (Milwaukee Chophouse): October 23
o FLOW Wine Tasting Party (Wicked Hop): October 26
o Pumpkin Carving Contest (Cathedral Square Park): October 28
· Dance
o Don Q (Marcus Center for the Performing Arts): October 12-15
· Film
o Classic Movies – Lady On A Train (Charles Allis Art Museum): October 25
o Warren Miller’s “Off the Grid” (Pabst Theater): October 25
· Halloween
o Not-So-Scary Halloween (Betty Brinn Children’s Museum): October 26-29
o Little Monster Bash (Betty Brinn Children’s Museum): October 27
o Rocky Horror Picture Show (Oriental Theatre): October 28
· Music
o Steve Cohen Blues Duo (Riverwalk Bistro): October 15, 22
o Ian Anderson (Pabst Theater): October 15
o Lindsey Buckingham (Pabst Theater): October 17
o Milwaukee Symphony Orchestra (MSO): October 19-21, 27-29
o Mrs. Fun (Riverwalk Bistro): October 20, 28
o Mike Brumm (The Wicked Hop): October 21
o Blue Man Group (Bradley Center): October 22
o Western Box Turtles (Shank Hall): October 22
o U2Zoo (Shank Hall): October 28
o Brian Nebel & Brew City Jr. (Riverwalk Bistro): October 29
o Citizen Cope (Pabst Theater): October 29
· Pet-Friendly Events:
o Fall Harvest Dog Walk & Yappy Hour (Central Bark): October 28
· Sporting Events:
o Milwaukee Admirals (Bradley Center): October 20, 28
o Milwaukee Bucks (Bradley Center): October 21
o UWM Panthers (UWM): October 15, 18, 20, 22
o WWE Presents Smackdown (Bradley Center): October 29
· Theater:
o Gem of the Ocean (Milwaukee Repertory Theater): October 18
o Joe Egg (Broadway Theatre Center): October 19-November 5
o Memory House (Broadway Theatre Center): October 19
· Visual Arts
o SCAPE: 7 Visions Group Art Show (Bucketworks): Through October 18
o Volunteer Garden Work Day (Villa Terrace): October 21
o Italy Student Exhibition (MIAD): October 27
o Calling Forth Certain Experiences (MIAD): October 31
o Ireland Student Exhibition (MIAD): October 31
o Making It For Real (MIAD): Through November 4
o Biedermeier Exhibition (Milwaukee Art Museum): Through January 1
