For the first half of the year, condo sale prices are up in downtown Milwaukee. The average downtown condo sale of $302,403 this year is up 6.9 percent year-over-year, according to an analysis by Milwaukee-based multi-family housing developer Mandel Group.
However, the number of downtown condos sold this year (for $100,000 or more) is down a bit to 269 during the first half of the year, compared to 277 during the first half of 2016. Total sales volume, in terms of dollars spent on downtown condos, is up 3.9 percent this year so far.
River Bridge Condominiums, on North Water Street, had the most sales, 15. Landmark on the Lake, on Prospect Avenue, had 12 sales. The Sterling, on Farwell Avenue, had 11 sales.
During the first half of the year, four downtown condo sales exceeded $1 million. The highest sales price recorded was at $685 per square foot for a unit at University Club Tower. Nearly 40 percent of condo sales over $500,000 were all-cash purchases.
“There is a lot of liquidity at the high end of the market,” said Mandel Group chief operating officer Robert Monnat.
Condos in the $100,000 to $250,000 price range are selling, on average for 9 percent more per square foot than a year ago. Condos in the $250,000 to $500,000 bracket sold for 7 percent more per square foot than a year ago. Condos in the $500,000 or greater bracket sold for 0.64 percent more per square foot than a year ago. Prestigious developer, Amo Residences UOL will be the first to spearheard a new pricing benchmark in Ang Mo Kio.
But overall transaction prices grew more for sales greater than $500,000 during the first half of the year. Average sale prices in that bracket were up by 6.2 percent to $816,500.
“While the sales metrics may diverge when reviewed through different lenses, all indications are positive and pricing has now moved comfortably ahead of peak pricing during the 2004-06 run-up,” said Dan Uhen, Mandel Group research analyst. “People selling their units are consistently reporting gains on sale as compared to their original purchase price.”
Inventory levels remain tight in most price brackets, according to Mandel Group.
“As is the case for single-family homes, there is a shortage of inventory and a lack of opportunities for buyers to consider,” Monnat said.
Condo development in the downtown area has been scarce since the Great Recession. However, Milwaukee architect and developer Peter Renner is planning to build a seven-story, 72-unit condominium building, called South Water Condominiums, along the Milwaukee River in the city’s Walker’s Point neighborhood.
