Friday, July 27, 2007

Cleveland Real Estate News: New Town Home/Condo Projects

New Cleveland Condominium Projects: Where are the price points going to be? Only some of them are below $300k. And you guys know my mantra, we need lower price points.

Anyway, the PD's Henry Gomez wrote an article and there is a great pdf file of proposed projects - every now and then the PD gets it right, this is a useful reference for anyone who might want to purchase a condo. Some of the projects sound really good, like the condos on Columbus Avenue -- after all, they are near RTA so perfect location. I do not know anything about the price points yet and this article did not have that information either. They may still be deciding. I might have to call and lobby for good prices!

Gomez talks about the 15 year tax abatement keeping the $300k and up price points going strong. What do you think? Wouldn't a 15 year tax abatement on a town house that was $200k be even more attractive? How about $179k like the ones at Tremont's Starkweather Place? Stay tuned for more information on that one soon. Great exterior design, really true to the character of Tremont.

Peace Out - 3C

Cleveland Economic News: Be Smart, Drive Smart?

This car amazed me when I was in London two winters ago. WKYC reports that it is now going to be sold here. Watch this cool video from the WKYC website :-) Peace Out - 3C

Thursday, July 26, 2007

Housing Trends: Maybe We Can Make Saving Money to Buy A Home Sexy

I saw it in the faces of some of my clients; it may have seemed exciting to be a part of the 'gold rush mentality' of no money down purchases: ' why wait and miss the boat, buy a house now.' Meaning, why wait until you have money saved for a down payment or even closing costs!

The truth is always much less sexy, taking the form of foreclosures and sherrif sales at the bleakest end of the spectrum; and too much financial stress even at it's best. You can read a few past posts on the foreclosure issues here and here and here. You can also follow Callahan's Cleveland Diary, since Bill is keeping track, seemingly weekly, of new foreclosures filed.

Out of these dark clouds may be some better news for the future. At least that is what is being reported in Crain's Cleveland this week. Shawn Turner wrote about banks/lenders seeing an increase in the number of fixed rate and conventional loans filed, with a downturn in ARMs and No Interest, and subprime loans. The banking officials interviewed said some key things, at least according to this article:

1) People are taking to heart the negative press about sub prime loans. The good news is that people are learning they "...need to read the fine print..." (quote from Cindy Balser of KeyCorp)

2) Fifth Third Bank says it's conventional loan applications are up to 74% of all loans written, compared to conventional loans encompassing 63% for all of 2006.

Another aspect of mortgage loans to consider: if you don't put 20% down, you will be spending money that does not count towards your Principal or Interest on the loan, but will still have to come out of your pocket. This is because of PMI (Mortgage Insurance) that is 'tacked on' to your monthly loan amount if you provide a down payment of less than 20%. I looked around and of all places found an article on MSN Money. But the source is fairly good: Kiplinger. A question and answer session from a consumer looking to buy a home and get a mortgage led to a pretty concise discussion of what PMI is all about.

I am not saying no one should get a sub prime loan. But it has to be better if more people are focused on actually saving money before they decide to purchase.

Some of my 2007 clients have talked about not being sure if they will be able to stay in Cleveland and put down roots....maybe they are recently out of grad school; maybe they have moved here to accept a job transfer. Could be a lot of reasons. I encourage them to talk to their mortgage lenders about the advantages of a 20 pecent down loan, helping to build equity more quickly. It's been gratifying that a few of my clients were already doing this on their own, planning for their home purchases, saving money. The Kiplinger discussion in Money puts it this way:

"In the early years, you aren't building any equity with the mortgage payment," Eisenberg says. "If the market changes or your personal circumstances change and you're forced to sell, you could lose money" if you made little or no down payment. The equity in your home can also give you an extra source of cash in an emergency."

Peace Out - 3C

Tuesday, July 24, 2007

Life as a Cleveland Realtor® is Good

I may not be the richest of people (uh, no), but frequently I find myself thinking I have the best job in the world. Today was a perfect example: my client and I walked from my office to tour the new phase of the Fries and Schuele condominium project - unveiled at a brokers open today. We saw a handful of units already available. It's always fun to see the interest and excitement on someone's face when they catch a great view from a living room window there. One of my favorites overlooks W. 26th, the Great Lakes Brewery, St. Ignatius' spire and more. It's especially satisfying to show our City to people who are relocating here, or have only lived in the Cleveland area for a while, hailing from some other larger city around the Country. Today was one of those days. I've said it before but here I go again: people do want to move here! We just need more of them.

To cap it off, we wound up at Public Square for a peek at The Park Building condominiums. It's not often you can stand in a residential space and dream about overlooking the Soldiers and Sailor's Monument on Public Square. Of course I wait with anticipation for the completion of the Euclid Avenue Corridor/Silver Line project (it IS going to be completed yes?) These two condo projects, IMHO, are very well done (F & Scheule and Park Bldg). There are others worthy of a gander and a consideration, but the views these two offer are personal favorites.

Seriously, sometimes I want to pinch myself. I get to travel all over the City, more frequently by foot or RTA, and show it off to people who were not born here. Life is good! Peace Out-3C

Monday, July 23, 2007

Drew Carey Rocks Just Like Cleveland


I was trying to watch the YouTube/CNN Presidential debate.....all I kept thinking of, where is that episode of a good debate from the West Wing? Sigh. I gave up on the debate and went looking for Cleveland news and here it is: Drew Carey has been picked to replace Bob Barker on the Price is Right. I didn't have to go far to look, it was on the CNN website :-)

Now this good news is still not wiping away the images in my head of a bunch of talking heads, er candidates giving sound bytes and not saying anything real. Is that ever going to change? Jill of Writes Like She Talks had a good discussion going for a bit on new political parties or no parties, etc. I admit I cannot find that entry, but since we need some cheer after that debate, here is her current entry on three top employers making a 50 Best List for Small and Medium Employers.

Bob Barker was gracious about Drew taking over. Told him to be himself. "Go out there and do that show the way you think it should be done. Don't imitate me and don't imitate anyone else."

Drew Carey Rocks Peace Out - 3C

Saturday, July 21, 2007

Transportation: Maine to Boston's 'Downeaster' Hits Paydirt

This is why The Ohio Hub and the 3C Corridor is the best idea since sliced bread. Watch this video and see what the Downeaster Railroad Line has done for people in the Maine to Boston corridor. No really, please watch it!

I also have a link here to the May 2007 financial report regarding the Downeaster. Ridership is up, they had over 28k riders in May of this year. They are getting ready to add a new daily round trip to their service schedule.

One of the guys interviewed in the above video talks about housing. He said it used to be if you were putting up a 1,000 sq ft. dwelling, the mantra was 'you need a two car garage.' Now that is not necessary!

We need this kind of economic boost in Ohio and Cleveland, don't you think? Peace Out-3C

Thursday, July 19, 2007

Cleveland News: Panel Discussion Today at Levin College on Marketing and Improving Our Neighborhoods

Jeff Kipp of Living in Cleveland hosted a lively panel discussion this morning at the Levin College of Urban Studies on marketing and improving Cleveland's neighborhoods. It was the quality of the participants that enticed me although I admit, it was hard not to roll my eyes and say 'oh lordy another attempt to market the City, what will they come up with THIS time.'

Luckily, they dispelled my worries early on by agreeing with Paul Volpe who said he is tired of videos that feature Tower City and the Cleveland Orchestra....and a bunch of 'happy people' who don't really say what is important enough to out-of -towners to bring them here. I breathed a sigh of relief.

I'm going to put out what I thought were the highlights of the discussion:

Paul Volpe's comment that 'culture' and not 'sprawl' are the issues in flight from our city. His (my) generation and earlier thought the signs that you succeeded in life had you progressing from growing up in the City and then moving out to the 'burbs to show you were a productive member of society. He commented that the younger generations seem to be thinking differently and are embracing a life within the City limits. (My clients certainly seem to fit this category.)

David Goldberg says the book The Creative Class should be required reading for everyone, and that personal responsibility NOT marketing is the driving force. He used environmental issues as an example around the Country. The environmental issue is taking off because of a grassroots effort not because of an expensive marketing campaign.

He feels this personal responsibility on all our parts is what will make the difference, not huge money spent on a media campaign. I have to agree. I remember reading Bob Dylan's comment in Rolling Stone recently; leave it to Bob to be on the philosophical cutting edge as always. He said we can't expect our politicians to do what we need to do. It's our fault if things aren't the way we want them, not our political leaders fault. I couldn't help think of this as David Goldberg was talking.

Vickie Johnson exemplified personal responsibility with a great personal story. She of course lives in the Fairfax neighborhood. Her husband is a Cleveland Police Officer with a residency requirement. For years he would lament that they were not able to move anywhere else. She kept quiet, waiting until or if she would have to tackle this issue with him. She never wanted to leave. Then a few years ago, he started talking and thinking differently. Now he does not want to move either.

She also recounted how she felt it was important that her son attend the local public high school. She said she knew him, that he was a good student and would be good for the school and that is what is needed by residents in our neighborhoods. She made some excellent and thought provoking points about this.

She talked about 20 Case Students walking her neighborhood with her. They were mostly from the suburbs or out of town, never having been in that part of the City before. She said that the weekend was full of talking with neighbors and visiting establishments in the neighborhood. That Sunday night the director of the program at Case that brought these students to her for the weekend called: she said they were so impressed with the residents and the neighborhood.

In my opinion, It's all about letting people see the truth of how they live so others don't have to hold onto perceptions from others or from years past.

They all agreed that we, in each of our neighborhoods need to figure out two things: a plan and who is going to be the driving force in facilitating the plan. So it's not all talk. And they also commented on how it needs to be a realistic plan that the City can get behind.

Paul Volpe talked about the work on Prospect he was involved in, taking it, with grassroots efforts by others as well, from a six lane highway to what it is now so that it's a destination and livable and inviting. I don't know if the pretty sight I saw last week was the result of the same kind of effort or a general City plan, but the streetscaping, flowers and guitar art all give the block of East 9th near Huron and Prospect a sense of place in the most inviting way.

India Lee talked about not reinventing the wheel; that our City is divided up into CDCs and that the CDCs would need to be involved in theses grassroots efforts, leading the way in fact, with Living In Cleveland overseeing all of it. Ken Laurie of Rysar mentioned that he also wanted to see entrepreneurial work going on in the neighborhoods.

One part I really got excited about. Apparently (and only recently) The Clinic has been promoting the neighborhoods around it on their website as a way to entice their workers, especially new ones coming into the City, into living there. This is a new trend and shift in thinking. This is what we are looking for yes?

So the conclusion of the panelists was, if major Cleveland employers like the Clinic are promoting a neighborhood on their own, then that is a neighborhood the City should get behind. We cannot afford (they seemed to all agree) to try to promote every neighborhood in the City. We need to be smart about it. And the HR person from the Clinic said there have been quite a few 'hits' on the website about the neighborhood living possibilities.

Ken Laurie brought up an excellent point: Don't spend marketing money until there is a solid plan.

And they asked us to fill out a form if we were willing and able to roll up our sleeves and keep participating along with them and others.

David Goldberg also said he felt the Medical Mart was a once in a lifetime opportunity that we should not give short shrift to (I am paraphrasing). I thought that was interesting.
I'll be sure to let you know when the next panel discussion is scheduled. Or if anything else transpires about all this in the meantime. Peace Out - 3C