JSOnline: Home sales drop - Transactions, prices fall in most counties; condos hit hardest
According to our Metro Multiple Listing Service (MLS), the first quarter results are in:
overall activity is lower and slower than what was reported last year.
I love statistics.
Most of what I do every day is analyze the housing market and report any changes.
But I have concerns about the statistics used to report the state of the housing market.
The biggest concern I have for relying too much on statistics is one must know the sample taken.
The statistics used to support this article’s position is the entire Metro MLS area (which includes all of the counties that make up
Southeastern Wisconsin) and includes single-family homes, two-family homes, multi-family properties, condominiums, commercial properties, business operations, vacant land, etc.).
This is a very broad sample.
I don’t mean to single out municipalities, but do you think a home seller in
Greendale cares about the Brown Deer market?
Do you think a downtown
Milwaukee condo owner cares about the business operations of a business owner in
Hartford?
So then, why do we lump all of these “sub” markets into one number?
This article also compares the overall condo market to the overall single-family home market and has asked real estate agents to weigh in on this topic.
One agent commented that condos are very hard to sell and that there are many to choose from.
This agent also suggests that younger people don’t want to be tied down to condominium rules and regulations and association dues.
Here’s what I am noticing in the downtown condo market:
- Buyers have definitely re-emerged in the real estate market.
- I am witnessing shorter days on market (DOM) figures - which most of it has to do with realistic sellers pricing their homes competitively from the very beginning. Sellers are quite aware of the reality of our condo market.
According to this article, the National Association of REALTORS® (NAR) expects
sales to be flat until fall.
I don’t always agree with what is reported in the newspaper.
However, I do agree with this statement.
This year, many have asked me how my business is doing.
In comparison to where I was this time last year, I find myself working for many clients and customers. Although it is still a buyer’s market, I do see most of my business coming from buyers.
This tells me that sellers are positioning themselves to wait out this frustrating market.
As I said, sellers in this market are pricing their homes more competitively and many are being successful in selling their homes faster this year than in the past.
There are a few downtown condominium developers who are experiencing financial woes (The Franklin at East Pointe, Landmark on the
Lake,
First Place on the River, Wisconsin Tower).
There is some speculating that some apartment conversions may return to apartments (which should help dry up our supply of downtown condos).
Between competitive pricing, delayed condominium developments, possible apartment conversions reverting back to apartments, and buyers re-emerging at a higher pace than last year, I predict that housing prices will slowly begin to rebound.
As the NAR says, we may not see a sudden change in housing prices, but I do agree that we will have something positive to report by the third quarter of 2008.
Therefore, for those buyers waiting for the bottom to drop out, you might have waited a tad too long.
I believe we are starting to see improvements in the market and housing prices are beginning to shift.
If you’re thinking of buying your next home or selling your home, please don’t hesitate to call me at (414) 412-7980.
Joanne Cleaver, writer for the Milwaukee Journal Sentinel, writes
more about the first quarter numbers.
Click here to read the entire article>>>
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Labels: Real Estate
JSOnline: Riverwalk funding advances
Do you ever drive down McKinley where the former Park East freeway once stood and wonder why all this valuable land was freed up?
Do you ever wonder why it has taken so long for this area to be developed?
Well, stop wondering because we should be seeing some activity finally near the corner of
Juneau Avenue and Third Street.
Ruvin Development, Inc., who has been involved on a number of downtown real estate developments in recent years, plans to begin construction on his Aloft Hotel project this spring.
Aloft will feature a boutique hotel, high-end condominiums, and will include street level retail space.
This mixed-use property will overlook the
Milwaukee River, just north of
Juneau Avenue.
In addition, Ruvin is seeking financial assistance from the City to help pay for a Riverwalk and public plaza.
The Zoning, Neighborhoods and Development Committee unanimously recommended spending over $850,000 to help finance these public improvements.
This loan will be repaid through property taxes generated by the hotel and other neighboring developments.
Ruvin expects the hotel to open in summer 2009.
Despite the news about a slowing housing market, real estate developers still envision a growing downtown economy and real estate market.
Real estate developers are realizing that they need to have a business plan in place before they begin breaking ground.
Recently, we have read a number of articles which feature some condominium developers experiencing financial woes (The Franklin at East Pointe, Landmark on the
Lake,
First Place on the River,
Wisconsin Tower).
I believe we will begin to see a shift from “condo-only” developments to mixed-use developments which will also happen to include smaller condominium associations.
Based on discussions I have had with other downtown condo specialists, the condominiums planned for the Park East will be marketed to buyers who appreciate the finer things in life.
According to our Metro Multiple Listing Service (MLS) the average price per square foot for all of downtown (including the surrounding neighborhoods) is approximately $200 per square foot.
According to the listing broker for one of the proposed condominium associations in the Park East, she estimates that the price per square foot will be double the average (approximately $400 per square foot).
There appears to be strong demand for super-luxurious condominiums in downtown.
Downtown Beware
I believe downtown officials need to be careful.
For years, I have heard young professionals complain that they can’t afford the downtown condominium lifestyle.
I will tell you that the best buys are located just outside of downtown in Riverwest, Brewers Hill,
Halyard Park, Bronzeville, Walkers Point, and the “Fifth Ward.”
But even these neighborhoods are commanding at least $185 per square foot price tag.
Our rental pool in downtown has declined as a result of apartment-to-condominium conversions.
As a result, we have seen market forces increase the cost of rent.
I am hopeful that some of these conversions will return to apartments as this will have a positive effect on the downtown condominium values.
This will also offer additional options for downtown dwellers to choose between leasing and purchasing.
Since the financial industry are tightening their lending policies and pushing potential buyers away, downtown needs to offer housing for those who are unable to purchase.
Tom Daykin, writer for the Milwaukee Journal Sentinel, writes more about Ruvin’s Aloft development and its proposed Riverwalk.
Click here to read the entire article>>>
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Labels: Real Estate
The Business Journal of Milwaukee: Mandel to join First Place condo project - Construction, sales proceeding for troubled building
During the past year, real estate developer Scott Fergus and his company, Key Bridge Group, Inc., made the news for all of the wrong reasons.
He had some very bold projects in the pipeline which included 601 Lofts, 320 Condos,
and First Place on the River (
First Place).
Many said he had a great vision for downtown, but lacked a business plan.
Now, Fergus is no longer handling any of these downtown condominium developments.
In January 2008, Fergus and
Key Bridge filed for receivership for
First Place.
First Place is located on one of the most prime pieces of real estate in downtown - where the
Milwaukee and
Menomonee Rivers meet in the “Historic Fifth Ward.”
The largest mortgage holder for
First Place is Madison-based AnchorBank.
The bank is expected to hire
Milwaukee real estate developer Barry Mandel and his company, The Mandel Group, Inc., to complete any outstanding real estate services for this development.
According to the article,
First Place is more than ninety percent complete.
The only remaining tasks yet to be completed are the building’s lobby and installation of boat slips.
Now for the good news…
When all is said and done, AnchorBank has reassured all of the condo owners that there will not be any construction liens filed against them.
Anytime there is a lawsuit, this is the biggest concern any current or potential investor has with a development.
At the time of the receivership filing,
First Place had 78 residential units under contract, three closed transactions and 70 unsold units.
Since the filing of the receivership, 17 of the 78 units under contract have closed.
My take...
Although I am confident in Barry Mandel’s skills and abilities to enhance the downtown community, I’m not sure he is a miracle worker which is now needed for
First Place.
There are so many external factors that affect the real estate industry (e.g. excess supply, recession and inflation concerns, tightening of lending policies, etc.).
In addition, Mandel has his hands full as well.
The North End, although in the process of breaking ground, has had its challenges.
However, if you had to hire someone to take on the financial problems of
First Place, Mandel would definitely be on the short list of real estate developers to turn this development around.
Pete Millard, writer for The Business Journal of Milwaukee, writes more about the new direction for
First Place on the River.
Click here to read the entire article>>>
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Labels: Real Estate
JSOnline: Marcus to shine anew - Downtown lights to make arts center a work of art
You will soon be seeing The Marcus Center for the Performing Arts (The Center) in a whole new light.
In fact, nearly 900 colorful LED lights will change how we see The Center.
The “light art” program, which costs over $1 million, will showcase the architectural-design of The Center as well as remind us that
Milwaukee is rich in the fine arts and culture.
The dusk-to-midnight display will be seen 365 days a year.
Mary Louise Schumacher, writer for the Milwaukee Journal Sentinel, writes more about the illuminated version of our performing arts center.
Click here to read the entire article>>>-----
Labels: Economy
Current Listings!
Under Contract! Lofts on Broadway #406 - $194,900
The focal point of this one-bedroom condominium is the full wall of Cream-City brick. This warehouse-style condo features a spacious 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>>>
Riverbridge #401 - $214,900
Enjoy the afternoon sun and the
Milwaukee River views in the sunroom of this top-floor condominium. This spacious, 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! River Court #207 - $317,900
Are you looking for something different?
This Vetter Denk designed riverfront condominium features Brazilian Cherry hardwood floors in the living room, dining room, kitchen, gallery, and home office.
Entertain guests on two spacious balconies which overlook the
Milwaukee River.
You will be impressed with the great room and its three walls of expansive, floor-to-ceiling windows which offer sunrise,
midday, and sunset views of the river and Riverwalk.
The kitchen features granite countertops, stainless-steel appliances, under-mounted stainless-steel sink, and spacious breakfast bar.
The bathrooms are even more incredible:
granite countertops, double vanity in master, under-mounted stainless-steel sinks, and limestone flooring and tub surround.
Click here to read more about this amazing riverfront condo>>>
Western Leather Lofts #403 - $325,000
This warehouse-condominium 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.-----
Labels: Real Estate
