National Association of REALTORS®: NAR Hails Passage of Economic Stimulus Package to Help Jumpstart Housing Market
This past week, Congress passed the National Economic Stimulus Package that would help thousands of home owners, the real estate market, and overall
US economy. At the time of this posting, President Bush has not signed this package into law. However, it appears that he will do so in the very near future.
The National Association of REALTORS® (NAR) is pleased that both the Federal Housing Administration (FHA) and the Fannie Mae and Freddie Mac (GSE) loan limits have been increased.
These new limits will make it easier for those who want to own their own home and for those who currently own their own home keep their home; thus reducing the number of foreclosures nationwide.
These new limits should help jump start the financial markets by bringing more money into the nation’s mortgage market.
Renters & First-Time Homeowners - The Housing Market Needs You!
These additional incentives should also assist many renters and first-time homeowners to enter the real estate market.
There are many more sellers in this market than buyers.
Many of these sellers have found their next home of their dreams.
Unfortunately, these sellers are unable to make this move because they haven’t been successful in selling their home.
The real estate market is very much like falling dominos.
We’re looking for that someone special, a renter or first-time homebuyer, to start the domino-effect.
Here’s how the domino effect works…
The supply of real estate continues to outpace demand.
In basic economics, this is the reason for falling prices.
With cooling housing prices, today’s buyers are able to get more house for their money.
The Fed continues to lower interest rates.
Some of these rate reductions don’t directly affect the mortgage rates that you and I find meaningful.
Some of these rates affect the costs the banks incur for borrowing money to provide the funds needed for financing real estate transactions.
Generally, as the bank’s borrowing rate decreases, so does the mortgage rates we pay.
With declining interest rates, today’s buyers are able to get even more house for their money.
Congress has passed the National Economic Stimulus Package which will help the housing market by raising loan limits for FHA, Fannie Mae and Freddie Mac.
This will allow more renters and first-time homebuyers’ access to homeownership.
As demand for real estate matches supply, prices will begin to improve.
Improving prices mean greater appreciation rates and a greater return on your investment.
This is the type of real estate market that
Milwaukee (especially in downtown) has experienced between 1995 and 2005.
As demand for real estate matches supply, more and more buyers will experience their dreams of homeownership.
In addition, more sellers will also experience their dreams of living in their next home as well.
It’s a win-win situation.
Unfortunately, we can’t get there until renters and first-time homebuyers enter the market and start the domino-effect I just described
I have worked more with renters and first-time homebuyers than any other group.
As a Real Estate Broker and REALTOR® I will explain the entire process of buying your next home, from beginning to end.
In addition, I will explain what you can expect from me during the entire process; so that there are no surprises later.
If you would like to learn more about the advantages of home or condo ownership, please call me at 414.412.7980 or e-mail at
dray@shorewest.com.
Mary Trupo, contributor for the National Association of REALTORS®, writes more about Congress’ National Economic Stimulus Package.
Click here to read how this bill will stimulate the real estate market and overall economy>>>
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Labels: Economy
JSOnline: Development plan advances - Supervisors favor proposal for student housing, offices, retail space downtown
New Vision Development Company has proposed a $75 million downtown development on the corner of North Sixth and West State Streets.
This development, which appears to have met preliminary approval from The Economic and Community Development Committee of the Milwaukee County Board, will include a seven-story apartment building aimed at housing students.
The location is ideal for students who attend classes at MATC, Marquette, MSOE, and UWM.
New Vision’s proposal will provide enough housing for 450 students, 50,000 square feet of retail space, and a 600-stall parking ramp.
New Vision expects construction to start in November 2008 and be completed within 18 months.
Why am I so excited about apartments and student housing?
During the past four years, downtown
Milwaukee has seen a sharp decrease in the number of rental housing options.
Courtyard Square, The Blatz, Gallun, Landmark on the
Lake, The Franklin, and
Lake Bluff were converted from apartments to condominiums.
I expect that real estate developers will build more apartments and student housing developments in the coming years to replenish this growing need.
Barry Mandel of The Mandel Group has already begun to assist this demographic.
Mandel has completed construction for UWM student housing near
Commerce Street and
North Avenue in Riverwest.
He has begun construction on The North End which will first feature apartment buildings.
Downtown
Milwaukee will benefit from having an appropriate number of housing options for renters and homeowners.
Steve Schultze, writer for JSOnline, writes more about New Vision’s plan.
Click here to read more about New Vision’s residential proposal>>>-----
Labels: Real Estate
The Business Journal of Milwaukee: Luxury condos going fast in University Club Tower - Bucking the housing trend
When I meet people on the street, many ask me about the state of real estate market.
Most are surprised about my answer.
I think many expect me to talk about the fragile state of the housing market and the “doom-and-gloom” you read about in the newspaper.
However, my initial response is typically to ask, “What sub-market are you specifically asking about?
Most people look at the downtown condo market as a whole.
However, I look at different demographics, price points, amenities, location, etc.
The average price for a downtown condo is between $250,000 and $400,000.
We have a lot of condos for sale in this price range.
Therefore, the market is quite slow for this sub-market.
Those condos priced below $250,000 and over $400,000 continue to show signs of life.
Pete Millard, writer for The Business Journal of Milwaukee, is featuring high-end, luxury condominiums in this article.
The two condominium associations that are showcased in his article are University Club and
Kilbourn Tower.
Despite the swift downturn in the housing market, multi-million-dollar condominiums are still selling at a brisk pace.
University Club Tower
The University Club is a 36-story luxury high-rise featuring 53 high-end units.
Since the first unit sold, the developer has sold 41 units (77%).
Thirty-nine of the 41 units sold just during the past year - a year that was marked by slower
sales and foreclosures.
The developer is in the process of negotiating offers for seven of the final 12 available units.
Kilbourn Tower
Kilbourn Tower is another luxury high-rise featuring 74 high-end units.
Since the first unit sold, the developer sold 54 units (73%).
Approximately one-quarter of the
Kilbourn Tower condos are priced at least $1 million.
Millard interviewed several real estate professionals and asked why they felt high-end condominiums are immune to the “doom-and-gloom” of the housing market.
One felt that buyers of luxury condominiums aren’t impacted by a fluctuating stock market, high interest rates, or a slowing economy.
Another felt that condominium buyers who are capable of paying more than $1 million in cash aren’t affected by the highs and lows of the economy.
Click here to read more about the purchasers of downtown Milwaukee luxury condominiums>>> -----
Labels: Real Estate
JSOnline: Condo developer files for court receiver - First Place project beset with debt, lawsuits
Individual homeowners are not the only ones feeling the pain of a sluggish housing market.
In a recent article, Tom Daykin, writer of JSOnline, describes the financial woes that the developer of
First Place on the River is experiencing.
Scott Fergus, owner of First Place Milwaukee LLC, is facing construction cost overruns and mounting debts close to $60 million.
Daykin disclosed that Fergus has filed for receivership which effectively terminates his control of his own condo development.
Filing for receivership requires the courts to appoint a third party to operate the company for the benefit of its creditors.
This action is somewhat similar to bankruptcy.
First Place on the River is a 12-story condominium development
featuring 115 condominium units.
As the name suggests,
First Place on the River (106 West Seeboth) is located on prime real estate - where the Menomonee and
Milwaukee Rivers meet in the Fifth Ward.
First Place includes a Riverwalk and other publicly-funded improvements totaling $6.7 million.
The total value of
First Place Milwaukee is not known.
The sale of 70 of the 115 condominium units are pending.
These
sales will help raise funds to reduce the development’s debt.
Unfortunately, the sale of these condominiums has been delayed because of other litigation related to this development.
What causes the housing market to swing so wildly?
Downtown
Milwaukee, similar to other urban real estate markets nationwide, has experienced rapid growth in a relatively short amount of time.
Think back to how downtown looked in the mid-1990s.
And look at how far we have come since.
Real estate doesn’t react as quickly to market conditions as other investment markets (e.g. stock or bond markets).
Condominium developers make projections and predict that demand for condominiums will continue at a steady pace.
By the time condominium developers commit to a project and break ground, they are hoping that the market doesn’t change over the course of a multi-year construction project.
Unfortunately, the market has changed since
First Place first broke ground.
Last month, I reported that Mandel has agreed to postpone construction of Domus in the Historic Third Ward and Ruvin has postponed his Park East development due to the slowing housing market.
I’m confident that both of these developments will be constructed.
Their decision to delay adding more condominiums to our abundant supply of condominiums will help to stabilize our over-heated condominium market.
I predict that demand will increase at a greater rate than the supply for downtown condominiums which should maintain present housing values.
Daykin writes more about First Place’s financial woes and identifies the creditors involved.
Click here to read more about who is affected by First Place’s filing of receivership>>>
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Labels: Real Estate
Have You Worked With A REALTOR® Before?
If you are an experienced buyer or seller of real estate, then your answer will be “yes.”
How was your experience?
Licensed real estate
salespersons in the State of
Wisconsin must work for a brokerage to conduct real estate transactions.
However, licensed
salespersons are independent contractors.
Therefore, you could experience different level of services and customer service from each licensed
salesperson - despite working for the same brokerage.
If you’re new to real estate, then obviously you don’t know who you should choose to represent your real estate needs.
At Shorewest, REALTORS®, over 1,100 licensed
salespersons assist families with their real estate needs all over
Wisconsin.
This doesn’t factor the number of
salespersons working for our competition.
Therefore, buyers and sellers certainly have a large number of options when choosing their licensed real estate
salesperson.
When I talk to buyers and sellers, many of them are looking for a licensed
salesperson that contains these attributes:
Honest, integrity, communicates often, ethical, professional work ethic, and competent.
I could go on and on about how I fit this mold.
But that’s not what this blog is about.
This blog is about what I can do to better assist you with your real estate needs.
For the renters and first-time homebuyers, I suggest that you begin reviewing the brochure titled
“What to Expect as a Buyer.” This brochure will explain the real estate transaction from beginning to end.
It will provide a section outlining the advantages of home ownership, explaining the benefits of starting the pre-approval process before you begin looking at homes, explaining how the Offer to Purchase contract will be drafted, explaining the role of earnest money, explaining the importance of having a home inspection performed, explaining the process of applying for your loan, and finally, it will provide a section which will let you know what you can expect at the closing.
For those who have never sold a home with a licensed
salesperson, I suggest that you begin reviewing the brochure title
“What to Expect as a Seller.” This brochure will explain the approach Shorewest and its REALTORS® take in pricing your home, marketing your home (to expose it to the greatest number of buyers), and assisting you with full negotiation services.
In addition, this brochure will explain the significance of having an appraisal performed.
Also, this brochure explains the benefits of providing a home warranty with the sale of your home.
Finally, this brochure will provide a section which will let you know what you can expect at the closing.
Please call me at 414.412.7980 or e-mail at dray@shorewest.com and let me know if there’s anything I can do to assist you with your real estate needs.
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Labels: Real Estate
Current Listings
New Price! 2426 South 31st Street in Milwaukee - $118,700Well-maintained four-bedroom old-style Bungalow is located in a quiet South Side neighborhood, minutes from Downtown Milwaukee. This home features hardwood floors, tall ceilings, landscaped fenced-in backyard, and a two-car, detached garage.
Click here to read more about this well-maintained Bungalow>>>
New Listing! 3320 South 16th Street in Milwaukee - $134,900Live-work concept!
This all brick bungalow is located on
South 16th Street near
St. Francis Hospital.
This home is ideal for a small service-industry professional who wants to work from home.
Attached, to this single-family is a one-room storefront with exposure to a busy
South 16th Street.
The home features four bedrooms, two-full bathrooms, and a one-car, detached garage.
Although the brick exterior appears to be in good condition, the roof and interior will need work and updating.
We have priced this property to reflect the condition as well as the amount of work that is expected to be done.
Come with ideas!
Click here to read more about this “live-work” opportunity>>>
New Price! Courtyard Square in Downtown Milwaukee - $174,900Affordable two-bedroom, two-full-bathroom condominium located near the heart of Downtown Milwaukee features one indoor heated parking space, in-unit laundry, high-end finishes, and views of downtown and green space.
Click here to read more about this affordable Downtown Condo>>>
New Price! Lofts on Broadway in the Historic Third Ward - $204,900The focal point of this one-bedroom condominium is the full wall of Cream-City brick. Condo features balcony which overlooks the Third Ward, in-unit laundry, maple hardwood floors, exposed wood beams, and custom high-end window treatments. Bathroom features Kohler fixtures, ceramic tile floors, and vanity with vessel sink.
Click here to read more about this Third Ward loft>>>
New Listing! Riverbridge: Located along the Riverwalk in Milwaukee’s East Side - $214,900Enjoy the afternoon sun and the
Milwaukee River views in the sunroom of this top-floor condominium.
This one-bedroom condominium features one indoor heated parking space and has been updated throughout:
Granite countertops, stainless-steel appliances, convenient pull-out kitchen cabinet drawers, maple hardwood floors, and high-end window treatments.
Click here to read more about this top-floor, riverfront condo>>>
New Listing! Western Leather Lofts near Historic Brady Street - $325,000This warehouse-lofted condo features two bedrooms, den, great room, and two-full bathrooms.
For the past six years, the owners have enjoyed their southwest corner, sundrenced condominium that features 11-oversized windows overlooking the city’s skyline.
If they sell, they will sadly miss walking out their front door and visiting their
Brady Street neighbors, ethnic restaurants, and boutiques.
Other unique features include exposed Cream-City brick, exposed beam and post construction, polished concrete-heated floors, and two deeded parking spaces.
Click here to read more about this warehouse-lofted condo>>>
For more information about these properties, please contact me at (414) 412-7980 or e-mail at dray@shorewest.com.
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Labels: Real Estate
