BizTimes.com Milwaukee and Southeastern Wisconsin Business News: Real Estate: Market correction reshapes downtown condo scene
Considering the realities of the current condo market in downtown Milwaukee, it is hard to believe that this market was booming during the late 1990s and early 2000s. Competition was so fierce, that developments sold out even before they broke ground. I recall my brother racing back to Milwaukee from Omaha to see a new warehouse conversion called Riverwalk Plaza.
Between 1997 and 2005, condominium developers couldn’t build condos fast enough to meet demand. Unlike other investment markets, the real estate market responds very slowly to current economic conditions. Consequently, the condo boom ended which created an oversupply of condos.
Needless to say, sales of downtown condos have slowed dramatically. Some argue that the nationwide collapse of the housing market, the current recession, and the meltdown of the financial markets are the causes for the downturn.
Andrew Weiland, writer for BizTimes.com, explains how the downtown condo market shifted from a Seller’s Market to a Buyer’s Market in a relatively short amount of time.
In addition, Weiland also provides details regarding the following condominium developments: The Residences of Hotel Palomar, The Residences on Water, The Moderne, Domus, The Point on the River, River Renaissance, Park Lafayette, and Landmark on the Lake.
Some of these developments are cancelled (e.g. The Residences on Water, The Residences of Hotel Palomar, Domus (delayed)). Some are a going concern (e.g. The Moderne, The Point on the River, Park Lafayette). Some are completed, but have many unsold units which developers are marketing as apartment units (e.g. River Renaissance and Landmark on the Lake).
Some real estate professionals feel that it will take years for the downtown condo market to absorb our high inventory levels. What will help speed the absorption rate (i.e. months of inventory) will be the reduction in the number of new condo developments. According to the Mandel Group, downtown Milwaukee is carrying a 22-month supply of condos. What this means is that assuming all condo owners delay their entrance into the real estate market; it will take nearly two years to sell off our current inventory levels. Mandel suggests that normal supply levels should be just less than one year.
Click here to read more about how the economy and the mortgage markets affected the sales of downtown Milwaukee condos>>>
-----
Labels: Real Estate
Considering the realities of the current condo market in downtown Milwaukee, it is hard to believe that this market was booming during the late 1990s and early 2000s. Competition was so fierce, that developments sold out even before they broke ground. I recall my brother racing back to Milwaukee from Omaha to see a new warehouse conversion called Riverwalk Plaza.
Between 1997 and 2005, condominium developers couldn’t build condos fast enough to meet demand. Unlike other investment markets, the real estate market responds very slowly to current economic conditions. Consequently, the condo boom ended which created an oversupply of condos.
0 Comments:
Post a Comment
<< Home