Presentation on theme: "Milwaukee Downtown Market CMA is defined by zip codes 53202, 53203, 53204 and 53212. During the period from July 2009 – July 2010, there were only 364."— Presentation transcript:
Milwaukee Downtown Market CMA is defined by zip codes 53202, 53203, 53204 and 53212. During the period from July 2009 – July 2010, there were only 364 sales as compared to more than 700 sales in 2006, which is the lowest absorption recorded for the past five years. Long market times are prevalent, with the average sale occurring more than seven months after the date of listing. Buyers are negotiating on price and expect incentives or other forms of price reductions. With approx. 30+ developments that have been developed in the past 10 years, the overall market is selling for less than $200/ SF.
According to MLS, only 4 properties showed 2- digit sales from mid-2009 to mid-2010. Lake Bluff, 11 sales Landmark on the Lake, 21 sales The Blatz, 12 sales in the re-sale sector The Point, 30 sales For the developments in an actively selling mode, the above-average sales performance is a result of strong marketing and sales efforts combined with market-appropriate pricing.
Sense of Perspective According Multiple Listing Service, Inc. the most dramatic decline occurred from 2006 to 2007 with a 33% drop on sales within the 12-month calendar year. 2009 figures represent a 45% decline since 2006. But it stabilized from 2008 and 2009. 2010 condominium sales appear to be headed for the lowest number in 5 years.
Product Type Breakdown 85% of 1 Bedroom unit are selling under $250,000. 1 bedroom property priced under $150,000 sells in about half the time of product priced above. (126 days vs. 309 days average for 2010 sales) 2-bedroom units priced under $300,000 are selling at a considerably faster pace than higher priced product. (119 days vs. 263 days average for 2010 sales) Larger properties (+2,000 square feet) represent the weakest segment of the market. Product priced above $500,000 exhibited extremely slow absorption. It is expected to take 3 years to absorb the current inventory for larger residences (priced over $600,000).
Longer Longer Buying Cycle (First Visit Date – Contract Date) Buyers are taking more time to make buying decisions as they lost their emotions in buying process. Emotions are hidden influences, expressed or unexpressed, on buyers’ choices.
Garrison Partners approach to development process 1. PROXIMITY 2. PROSPECT 3. PRODUCT 4. PRICE 5. PRESENTATION 6. PROMOTION THE SIX P’S
Applying the 6 Ps to your selling process 1.Location 2.Are We the Right Target of the Community? 3.Right Product? 4.Manageable Price Range? 5.Presentation Fits Us? Hold your customers accountable of their directions! How much time do you spend with customers? You need to spend more time with them now to prepare them to sort out a buying decision priorities.
Promotions Promotions – as a Broker While email marketing is important to utilize when communicating with your audience, Social Media must be a critical part of your marketing plan.
The adoption of Social Media vs. Traditional media Radio took 38 years to reach 50 million users. TV took 13 years to reach 50 million users. The Internet took 4 years to reach 50 million users. The Ipod took 3 years to reach 50 million users. Ipod Application downloads hit 1 billion in 9 months. Facebook added 100 Million Users in less than 9 months
Social Media Stats: 96% of Gen Y’ers have joined a social network. The median age of a Tweeter is 31. The fastest growing segment on facebook is 55-65 year old females. The median age of their users is 33. 78% of consumers trust peer recommendations. Only 14% trust advertising. If facebook were a country, it would be the world’s 4th largest.
And last, but first and foremost, remember, What happens in Milwaukee may stay in Milwaukee, …