Cleveland Economic News: Giant Eagle Does it Again

Newsnet5.com reports that Giant Eagle is ending their double coupon program in the Cleveland and Akron areas. They claim it's what consumers want. I seem to be on a constant Giant-Eagle rant, but I can't help myself. It's what the consumers want? Must be a response to the fact that we moved from first poorest city to the rich ranks of fourth poorest city.

I guess they need all that extra money they save by not paying out for double coupons to build the new Giant Eagle at W. 117th and I-90; you know, the one no one will be able to walk to?
Peace Out - 3C

Housing Trends: A Serious 2006 Federal Reserve Bank in Cleveland Study on Home Sales Trends

My last 12 months in real estate have been like a roller coaster: frustrating, sad, satisfying and busy year, all wrapped up in month-to-month cycles. I was aggravated at the media talk about housing bubbles and now declining prices. I got sad about the number of people contacting me, trying to get help with a home sale when their mortgage was not being met, and frustrated at how long they waited to get help...meaning, it was not possible for me to list their home and have them make enough money to save themselves. I was delighted to see so many young people and other first time home buyers saving money and coming in with an ethic of fiscal responsibility. It is what makes my chosen profession the best for me; never dull and different almost every day.

Some of my real estate colleagues, in the business for decades, told me that real estate is always cyclical. My own personal experience from home purchases in the '80s and then trying to sell a condo in the '90s, showed me first hand this was true. And my experiences now as a real estate professional back up these opinions.

Foreclosures and extremely high numbers of listings do have an effect on sale prices in our area. But here is a study pointed out to me on the University of Wisconsin-Madison site. They talk about two studies, but one is more recent. It was completed in 2006 by The Federal Reserve in Cleveland and talks about cycles. Here is an excerpt:

"....To understand changes in house prices, it is necessary to study the price of residential land. Data indicate that the real price of land has been marching steadily upward since 1950. If the 1998–2006 boom to house prices reflects demand for housing-related amenities, then the data on land prices argue that this boom is a continuation of earlier trends.
Relaxed credit constraints could explain the outpacing of house price appreciation to incomes. House prices can and should be expected to surge if credit constraints are unexpectedly relaxed for first-time home buyers who are credit or down-payment constrained. This surge can occur even when incomes remain constant; when credit constraints change over time, incomes and house prices should not be expected to increase at the same rate. ..."

This is a long dissertation, so you might want to grab a cup of java before you read. It's a very good read, however, for anyone who owns a home, is interested in how real estate works.

I'm never going to discount our foreclosure issues, or the change in (for the better) home sale prices sellers experienced for a few years running. The old saying is that 'real estate is local' and it surely is that. But this is a 'non-chicken little' approach...statistics! Let me know what you think. Peace Out - 3C

The Avenue District: Progress!

Check out the Avenue District Blog - they have photos of the construction site, via a webcam they installed. I wish all the projects had webcams! You can subscribe to their newsletter as well, by going to their website. Peace Out - 3C

Does the United States Make More Manufactured Goods Than Ever Before?

Peter Goodman writes in the Washington Post that in fact, The United States "....makes more manufactured goods today than at any time in history, as measured by the dollar value of production adjusted for inflation -- three times as much as in the mid-1950s, the supposed heyday of American industry. Between 1977 and 2005, the value of American manufacturing swelled from $1.3 trillion to an all-time record $4.5 trillion, according to the Bureau of Economic Analysis...."

He highlights a former mill in South Carolina that is now a new home to an entrepreneurial high tech company.

As we all observe the increase in high technology companies here, like the ones moving in Downtown, we have to realize we are part of that manufacturing base. It's changing but it still exists. Good stuff. Read Peter's article here.

Read more:

Skyscrapercity.com
NorTech talks about Akron's Innovation Campus

Peace Out - 3C

Forbes Includes Cleveland Real Estate on Their Affordability List

There was a very good article in Forbes this week. Matt Woolsey reports about the affordability of housing stock in certain areas of the Country; and more specifically, certain cities. His description of affordability makes sense. The short version is, the median price matches the medium income. He points out that even if you don't have any money saved this year, ....it would take just two years of gross salary to become a homeowner...."

That means two years of saving for a home, which is reasonable and matches what my mortgage 'peeps' tell me. He was referring to Indianapolis at the time, but here are the other cities he included on the list for affordable homes:

Cleveland, Ohio
Indianapolis, Indiana
Detroit, Michigan
Pittsburgh, Pennsylvania
Atlanta, Georgia (this one surprises me, their salaries must be high enough to fit the criterion)
Greensboro, North Carolina
Cincinnati, Ohio
St. Louis, Missouri
Dallas, Texas
Austin, Texas

Our median income is somewhere around $57k -- according to the article. Does anyone have stats to back this up or corroborate? It sounds high to me. They list the median sales price of homes here as $122,900. That does sound about right. While it is not the best time to list a home for sale right now, it sure is a good time to buy one in the Cleveland area.

Forbes on line has a slide show that also includes the median home prices for each community, along with photos.

The more I think about it, I thought our median income was below $30k, otherwise how would we have been voted one of the poorest cities? Sometimes (!!!) when you read an article you just can't take it on face value, I know, you all already know that!

Peace Out - 3C

Cleveland Neighborhood News:Food Finds! New York Style Pizza May Be Best Pizza on Cleveland's West Side

New York Style Pizza is my favorite West Side pizzeria. (I included the link even though their website is still under construction in the hopes it is up and running soon.) They used to be located at Lorain and W. 150th and it was a treat to indulge in their white pizza with eggplant topping. Now they are on Triskett at W. 150th -- how lucky am I to be on their delivery path now!

They offer a nice selection of toppings, they even advertise The Largest Pizza in Ohio (36" hand tossed). All their pizzas are baked in a stone oven. They make their own yummy dough and sauces. A few weeks ago, I ordered a Hawaiian pizza without ham. You could be saying to yourself, self, she is odd...or, you could try it, and have a wonderful juxtaposition of flavors on a meatless pizza: the sweetness of the cooked pineapple on a killer pizza with a to die for sauce. Yum!

Their menu is actually broader than pizza: killer chicken wings....salads, burgers, ribs, etc. The place is always spiffy clean; there are a few tables to dine-in if you choose. Or, just walk in and order and then sit and chat with the friendly staff or others waiting for their pizza.

I sat with rapt attention a few days ago as I listened to Peter explain to a newer employee what went into the making of a calzone; as he detailed the process I was hungrier than ever. Peter is of course one of the local heroes to me since he is the pizza maker! The crust and sauces are (as they say on the BBC), absolutely fabulous. Check them out! (In case you are wondering, Geraci's pizza is my favorite East Side pizza... you were wondering weren't you? lol) Peace Out - 3C

New York Style Pizza, 15233 Triskett Road, near the corner of Triskett and W. 150th. 216-941-2500

Cleveland Neighborhood News: Does Anyone Care What Residents Think?

Are you surprised that the new Giant Eagle proposed for W. 117th near Target is moving forward? I'm not. Because of course it still makes no sense to have a store where there are no residents when five or six groceries already exist IN neighborhoods. Anyway, you can read about it here. Grrrrr. Peace Out - 3C