JSOnline: Listing edge up, but house sales drop - Experts say buyers' contingencies play role
Based on the latest statistics derived from Multiple Listing Service (MLS) for Southeastern Wisconsin, it still appears to be a buyers market. New real estate listings rose a mere one-half of one percent from a year ago. Unfortunately, during the same period, sales have dropped 11.2%.
What does this mean? We have an excess supply of homes on the market this year versus last year. Buyers, sellers, brokers, agents, and the media are all aware of this. Buyers know that there is no hurry to act on any particular home in this market. They feel that they can continue to look and pursue other homes and keep their "best" home in their back pocket. This extended shopping period is one of the causes for the slowdown in the marketplace.
This article tends to focus more on the "domino effect" for why the market has become a sluggish, buyers market. Brokers are seeing more "home-sale" contingencies in their offers. For example, Buyer B cannot buy Seller A's home until Buyer A is able to purchase Buyer B's home. Perhaps Buyer A cannot buy Buyer B's home until Buyer Z is able to purchase Buyer A's home. And so on and so forth. Who knows how many layers of buyers we have to deal with under this arrangement. If you're currently renting and are pondering purchasing a home, then you are the best candidate for doing so. You can help eliminate this "domino effect."
I suggest that another solution for turning this market around is for The Fed to consider lowering the long-term interest rate. Based on discussions with lenders, if the economy continues to maintain its current position which is meeting many analysts' expectations, The Fed will most likely reduce the interest rate within the next 12 months. This should help shift the real estate market closer to the middle of the road - which will be good news for sellers.
I am personally holding on to next year for my business to grow - as you can read in this article. The Milwaukee Journal Sentinel contacted me for my opinion on the current situation and my prediction of what will happen within the next 12 months. I predict that the market will rebound in sales volume and sale prices.
Sellers, I ask that you remain patient. The tendency is to adjust your asking price to entice buyers to write offers. I'm also seeing many buyers write in a discount - meaning that the days of receiving full-asking-price offers are behind us - for the time being. Buyers have re-emerged in the market since spring, but the pendulum hasn't completely shifted from a buyers market. Sellers if your patient, you will get your desired price if you're willing to stick it out.
Joanne Cleaver, real estate editor for The Milwaukee Journal Sentinel, writes more about our local market and the national market.
Click here to read the entire article, including my 15 seconds of fame>>>
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Labels: Real Estate
JSOnline: Consultant favors Park East condos - Area's best suited for them, he says
A recent report from a real estate consultant gives poor grades to the Park East Redevelopment Project. The report suggests that this area would benefit more by the development of condominium units rather than mixed-use projects that are currently under proposal with the Department of City Development. According to the report, condominiums remain the most lucrative form of downtown development projects as they do not require financial assistance from the city. According to the consultant who published his findings, "The downtown condo market remains strong."
If the downtown condo market remains strong, then what's the issue? The downtown office market has leveled off. This report suggests that the Park East project should focus less on hotels, retail, and office buildings and focus more on condominium units. The report argues that downtown retail space would only create relatively low-paying jobs. Additional hotel rooms would only compete with other hotels; thus, shifting business from existing hotels.
I know I'm not a consultant, but I do not completely agree with these findings. I agree that the office market remains a weak link to our economy. We need more high-paying jobs in this region to enhance our economy. I wish Milwaukee would do more to invite global firms to visit our great city and bring jobs to this region.
On the other hand, we need more retail outlets in the downtown area. Other larger cities have large box stores for those who live in these urban settings. Our downtown is one of the fastest growing areas in Southeastern Wisconsin. Why is it that we have to drive outside of this market to shop at Best Buy, Target, and Kohls? The Shops of Grand Avenue has not met the expectations of those who live in this market. Why can't we encourage retailers to consider our market as a profitable market?
We need more hotel rooms. We have an incredible convention center at Midwest Airlines Center. How can we compete with other cities our size for convention opportunities? More hotel rooms would mean more conventions. More conventions will improve our economy. I don't see how additional hotel rooms could hurt our economy.
I do appreciate that this report emphasizes the importance of not producing too much supply for any one type of real estate development. However, I do not think that more condo-only developments are necessary. We have seen non-stop growth of condo-only developments for the past ten years. I feel that it is time to mix it up and bring retail, office, and hotel opportunities to this market.
What do you think?
Tom Daykin, writer for the Milwaukee Journal Sentinel, discloses the findings of this consultant's report.
Click here to read the entire article>>>-
Labels: Economy
JSOnline: Building boom - Office, condo construction mark Third Ward, Walker's Point resurgence
Milwaukee's Historic Third Ward, Fifth Ward, Harbor View, and Walkers Point neighborhoods are experiencing a housing boom - outpacing development activity throughout the rest of the downtown area. And, it's not just housing. These neighborhoods have seen a spike in the commercial real estate industry.
The Developments:
* Cityside Plaza (formerly housed Reliable Knitting) - 57 units - $199,000-450,000
* Domus - 61 units - Starting at $425,000 for 1,500 square feet
* First Place on the River (former Terminal Storage Co.) - 152 units - $170,000-2,000,000
* Jackson Square Apartments - 84 units - Starting at $1,300 per month
* Kramer Lofts Apartments (former Kramer International Inc.) - 55 units - Starting at $500 per month
* Pritzlaff Hardware / Hack Furniture buildings - planned multi-use development
* River Renaissance - 82 units - $194,000-689,000
The developer of River Renaissance recently announced that Fratellos Waterfront restaurant is leasing 8,600 square feet of retail space overlooking the river.
Tom Daykin, writer for The Milwaukee Journal Sentinel, provides an in-depth analysis of the developments within these neighborhoods.
Click here to read the entire article>>>-
Labels: Real Estate
Current Listings!
Top-Floor Unit at Western Leather Lofts - $394,900 "2" Good "2" Pass Up* 2 bedrooms plus den
* 2 full bathrooms (master bath features whirlpool tub and heated towel rack)
* 2 indoor parking spaces
* 2 storage lockers
Western Leather Lofts offers you this top-floor unit which is loaded with unique features. Entertain guests in this spacious, open-concept floor plan. In the summer, watch the lakefront fireworks from the oversized balcony. The dining room is framed by Cream-City brick pillars. Warm yourself during the cold winters with radiant-heated stone flooring throughout the entire condo. Western Leather Lofts is a pet-friendly association. Home warranty included!
Click here to print a detailed property sheet, see additional pictures, or take a guided home tour>>>
South Side Milwaukee Bungalow on Quiet Street - $146,900 * 4 bedrooms plus den
* Three-season front porch
* Formal dining room with china cabinet
* Hardwood floors throughout the first floor
* Open floor plan
* Fenced-in, beautifully landscaped backyard
* Home warranty included!
Click here to print a detailed property sheet, see additional pictures, or take a guided home tour>>>For more information about these properties, please call me at 414.412.7980 or e-mail at dray@shorewest.com.
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Labels: Featured
Downtown Area Events & Attractions
All Summer Long:Musical Mondays – Monday evenings –
Lake Park
http://lakeparkfriends.org/Westown Farmers Market – Wednesdays,
10AM to 3PM –
Zeidler Union Square
http://www.westown.org/westown/farmers+market/default1.aspRiver Rhythms – Wednesday evenings –
Pere Marquette Park
http://www.westown.org/westown/river+rhythms/default1.aspJazz In The Park –Thursday evenings beginning June 7th –
Cathedral Square
http://www.easttown.com/info/Jazz%20in%20the%20Park/scheduleEast Town Market – Saturday mornings–
Cathedral Square
http://www.easttown.com/info/East%20Town%20Market/etmindexEast Side Open Market – Saturdays,
10AM to 2PM – Beans & Barley parking lot
http://www.theeastside.org/market.htmlDon’t Miss These Events:Lakefront Festival of Arts – June 15-17 –
Milwaukee Art Museum
http://lfoa.mam.org/Peace Festival – June 16 –
Pere Marquette Park
Polish Fest – June 22-24 –
Henry Maier Festival Park
Summer Solstice Music Festival –June
23 – North Avenue, East Side
http://www.theeastside.org/summer-soulstice.html
Summerfest Celebrates 40 Years of Music – June 28-July 8 -
Henry Maier Festival Park
http://www.summerfest.com/index.htmlBastille Days – July
12-15 – Cathedral Square
http://www.easttown.com/info/Bastille%20Days/bdindexFesta Italiana – July 19-22 -
Henry Maier Festival Park
German Fest – July 27-29 -
Henry Maier Festival Park
-Labels: Events
