Always on an even keel, Milwaukee condos continue to sell even as the market slows.
By Jeanette Hurt
Milwaukee’s downtown and Third Ward started experiencing a resurgence in 1980, when the areas’ historic roots and beautiful warehouses caught the attention of city residents. But the real boom in downtown condo living—and the construction of new residences—began about five years ago. The area has become so popular that it continues to develop, even as the real estate market in much of the rest of the country falters.
“The market has changed substantially,” says Joseph Grasch, president of Grasch Construction, which has been involved in several condominium projects in the city and in the suburbs, most recently the Studios on Second in Milwaukee and Garden Village in Greenfield. “The credit is not available like it had been. Buyers used to be able to buy for five or three percent down, and now, even the best of borrowers have a hard time getting something for 10 percent down,” he says. In addition, banks are not giving loans to those who are purchasing nonwarrantable condos or do not have at least 50 or 60 percent completed construction. The combination, Grasch says, has made it more challenging for condo developers.
Still, Milwaukee’s market is stable. “Our market has not overinflated as many East Coast and West Coast markets have,” says Heddy Humcke, relocation specialist and buyer agent for First Weber/Jeff Lien Team in Milwaukee. “What we’ve seen is a correction, and we have seen a reduction in value, but one that is not as dramatic as the rest of the country. In fact, I’m starting to see an increase in volume, and our spring market really picked up.”
According to the RPX monthly housing report in March, Milwaukee was one of just four areas in a survey of 25 where prices had actually increased in the past year. Prices were up about five percent, while they only increased about two percent in March of 2007.
According to Humcke, from January through March, 102 condos sold in Milwaukee. Of those sold, 41 properties were priced under $200,000, six were in the $400,000-to$600,000 range, and four cost more than $600,000, while the other half cost $200,000 to $400,000.
In the Milwaukee area, there were 884 active condominium properties listed for sale as of March, and half of those were of new construction, and 20 percent boasted river or lake views. “I think that is just tremendous, and it’s very exciting for buyers,” Humcke says.
Besides the downtown offerings, there are also good buys to be found in the northern and western suburbs. “When you move into commuter territory, the prices tend to drop,” Humcke says. “But there still are desirable properties in desirable communities, right in the heart of the sought-after North Shore.”
New properties keep springing up. Milwaukee developer and architect Peter Renner is currently constructing the BreakWater on North Franklin Place, a luxe building with 101 units. The project is slated for completion in January 2009, and already, more than half of the units have sold. “The condominium market in Milwaukee is not like the ones in Chicago or New York, where if you don’t buy a condo, you’re facing a tremendous commute,” Renner says. “Because of that, I think Milwaukeeans expect a little higher standard than in those other cities.”
For new and rehabbed properties, granite countertops, hardwood floors, exposed brickwork and stainless steel appliances are expected features. Buyers also want floorto-ceiling windows, high ceilings and private laundry. “And in many places, master suites are expected, and some even offer private elevators,” Humcke says.
People aren’t looking for the more formal settings of yesteryear. “Buyers want a combination kitchen and dining area, and they generally want to be able to install a home theater system,” Renner says. “They want bedrooms that have windows to the outdoors, and they want them to be spacious.
They like fireplaces, and they like big, nice marble bathrooms. They also want water views, and they really like private garages, especially twocar garages.”
Most condo buyers—in both the city and the suburbs—tend to be either empty nesters or young professionals. Some might also be single parents. But what they all want is convenience. “The condo market is location driven,” Grasch says. “Whether it’s the city or the suburbs, you want to have amenities close.”
For the first time, the high rate of new construction is expanding from the Third Ward and downtown region south into the Fifth Ward and Bay View. It’s even moving north a bit into Brewer’s Hill. “There are still plenty of prime sites available in Milwaukee,” Renner says. “But as a friend of mine says, amateur hour is over. If someone’s moving into a condo, they don’t want to make any compromises in their lifestyle.”
“When the condo market was strong, everybody thought they were a condo builder, and they put up a condo on any piece of vacant land anywhere,” Grasch says. “Many of those properties are now in foreclosure. But the guys who have done this a long time know that location is one of the most important factors, and those projects are still selling and surviving.”
High-quality developments are surviving without lowering prices. “Developers who know they have a strong product are not dropping their prices because people are still coming in the door.”
Now is a great time for those looking to buy a home in Milwaukee. Steady prices mean that the market is healthy. Most real estate professionals advise that you plan to spend at least three years in your new home before selling, to allow the property to appreciate. But once you’re settled in your new home, with its top-shelf amenities and gorgeous views, you probably won’t want to leave anyway.
