The Robinson Real Estate Blog

Well it's been 3 months since our last post and our only excuse is that we've had a very busy summer! While the market continues to lag, our share of the market has increased - (relative to all real estate companies). We've noticed that each transaction requires many more hours to complete. Banks were happy to lend money in '07. Now, they seem to have developed a cautious nature.

Well, enough of that. What we wanted to talk about was growth of the downtown core. This might strike some as a unusual topic, considering the announced departure of Chiquita. However, our sources have indicated Chiquita has been considering pulling out of Cincinnati for years.

So where is the growth in Cincinnati? Well, have you driven past Broadway Commons lately? There's a casino going up - and the name is -  the Cincinnati Horseshoe Casino. We understand that to many, a casino isn't the type of development that stirs boundless civic pride. And to be clear, no one in our office is anticipating a rush downtown to have a turn at the Roulette Wheel. However, we all recognize that this $450 Million project will reverberate throughout the Downtown, Pendleton and Over-the-Rhine areas. (Watch the video below to get a sense of the scope of this project.)

This is a phenomenally large property footprint. Think about this, there are 100,000 square feet of space devoted to gaming, which includes 72 table games and 2,300 slot machines!

In addition to the gaming areas, the Horseshoe Casino will have 3 sit down restaurants, a buffet restaurant and a food court. Of course, there will be a large bar serving a wide variety of liquor. However, there will also be meeting rooms available for rent and of course, headline entertainment.

We see this as a major game changer for downtown condominiums. We have been active trying to attract Horseshoe Casino (future) employees to consider condos directly across the street in the Glass House Condominiums. These groovy residences would be the perfect for employees. As one of the foremost experts in downtown living, we also recommend The Lofts at Fountain Square, 18 East Fourth Street, the Gateway Quarter, and - for the 'high rollers' - The American Building on Central Parkway and Graydon Lofts on East Sixth.

One thing is for certain, when this project is complete, approximately one year from today, Downtown Cincinnati will be quite a different experience for many, many people! - RSIR
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While not real estate related, a benefit of our association with Sotheby's Auction House is the updates we receive regarding recent auctions. For instance, we learned that this amazing piece of jewelry was recently sold for $12,736,927. It's quite beautiful. Our personal assessment is that, simply wearing this stunning tiara automatically makes one a princess!

It's from the collection of Princess Katharina Henckel von Donnersmarck. There are 11 rare Columbian pear shaped emeralds, weighing over 500 carats. It was commissioned by First Prince von Donnersmarck, Guido Count von Henckel for Princess Katharina, his second wife. The owner of the winning bid was not revealed.
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Every GREENarama Home Sells!
The recent GREENarama Home Show was an amazing success. All 9 homes that were built for the show were sold!  (One home was sold prior to the show being open to the public and the rest were under contract before the show ended.) We represented the quality home shown below- a beautiful home constructed by Carroll Custom Builders.

The show took place on Strafer Street in Columbia-Tusculum. In addition to the quality construction, excellent neighborhood and fantastic views from spacious rear decks, home buyers could take advantage of a 15 year, $500,000 tax abatement. That wasn't the only savings opportunity. The homes featured Energy Star appliances and construction techniques that will create savings for many years to come. In addition, all homes in the show were built pursuing LEED for Homes. (LEED stands for "Leadership in Energy and Environmental Design".)

Considering the success of the First Annual GREENarama show - we anticipate next year's show will be even better! -  If you would like your name added to the list we've created to give advance notice for next year's show, send an email to: joe@robinsonsir.com  -RSIR

This morning, we received a mortgage company advertisement promoting a 30 year mortgage loan at 4.3%, a phenomenal rate. This spurred conversation in the office, especially with those who remember when mortgages were 17%, 18%, and even 19%.

Today, there is so much negative press surrounding real estate, people seem reluctant to buy or sell at any loan rate. But honestly, there are people taking advantage of the current conditions to acquire real estate.

We understand that some home owners may blanch at the dip in value of homes they purchased 5 or 6 years ago. However, when you turn around and BUY a home, you are taking advantage of much lower prices to BUY.

One could say it's a 'wash', selling for less, then buying for less. But when you add the historic low mortgage rates, you're doing better than breaking even, you'll be reaping the benefits of low prices AND low mortgage rates.

This chart shows the history of 30 year mortgage rates since 1971..

We remain bullish on real estate. Some might claim this bullish perception is unrealistic in 2011. However, when you see people ignoring the inducements of fear that are broadcast daily and taking advantage of low rates and depressed prices, it validates that optimism. 

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Not to sound 'pollyanish' - but it's true that every cloud has a silver lining. It's difficult to identify ANY positives in the real estate market since late 2006. But positives abound. REALLY!

First time home buyers in Cincinnati and Northern Kentucky have the most ideal set of circumstances. They have the benefit of entering the market at a time when housing is more affordable than it has been in years. But it's not just first time home buyers who are coming out ahead. For instance, we’re finding that our clients who are ‘moving up, into a more expensive home, are realizing major economic benefits.

The Scenario
Let's say a couple is looking to purchase a larger home for their growing family. They purchased a home in 2003 for what we’ve calculated the average price in Cincinnati to be at that time: $173,625. This couple now has one child and one on the way. They want to move up to a larger home but are dismayed that their home now is valued at $157,000, a nearly 10% decline in value. This is not uncommon for homes purchased locally in 2003.

But this couple has also discovered a significant upside to today's market. They have discovered that homes they were desirous of in 2003 are now within reach. This is because homes that sold for $325,000 in 2003, have fallen in value - perhaps even more than starter homes. In fact, we have seen homes in the higher priced valuations fall by as much as 20% in value since 2005. This is unprecedented.

With this information, our couple has decided to purchase a larger home, a home they have long loved and appreciated, for $276,250. This is a home that they could not afford when it was for sale in 2003 for $325,000. But with a 15% decline in price since '03, this dream home is now within reach!

There's more than just price to consider here, however. There is selection, selection, selection! In 2003, the market was very 'hot'. Back then, if a home went on the market, it was often snapped up within a week. This meant there were far fewer homes on the market. The homes that were available, had more buyers. So our couple's position in the market was weak because home sellers in '03 could afford to pick and choose buyers. In 2003, if you found a home you liked, you had to rush to place an offer that was NEVER below the asking price.

More selection, less pressure, lower prices. From just about every consideration, it's one of the most desirable times in history to purchase a home. There are always opportunities in Cincinnati Real Estate and Northern Kentucky Real Estate, even in down markets. Seeing the big picture will help keep some of the negative influences at bay.

We all know Cincinnati is a treasure trove of remarkable architecture. But did you know we have some notable 'skyscrapers' of the ‘Chicago School’?

According to Wikipedia, "... the  the Chicago School was a school of architects active in Chicago at the turn of the 20th century. They were among the first to promote the new technologies of steel-frame construction in commercial buildings, and developed a spatial aesthetic which co-evolved with, and then came to influence, parallel developments in European Modernism."

Chicago School skyscrapers were designed to contain the three parts of a classical Greek or Roman column.
1) The first floor functions as the base
2) The middle stories, usually with little ornamental detail, act as the shaft of the column
3) The last floor or so represents the capital, with more ornamental detail and capped with a cornice.

There are many buildings in Chicago that follow this outline because so many were built generally around the same time. The Great Chicago Fire of 1871 destroyed numerous buildings. A fantastic building boom was required to rebuild the city - which coincided with the emerging technology of ceramic or brick clad steel girders - and the Chicago School was born from that.

As Cincinnati's Downtown became ever more prosperous, this 'skyscrapers technology' quickly became a standard building practice in our city. We even had our own Chicago School architect working right here; Daniel Burnham. Burnham was one of the most prominent architects of the Chicago School just happened to build a good number of buildings right here in Cincinnati!

The architect responsible for this was Daniel H. Burnham, a contemporary of Louis Sullivan and Frank Lloyd Wright.  Burnham established friendships here that led to his designing so many buildings in our city. Examples include: Union savings Bank & Trust Co. (Fourth & Walnut, NW corner), Traction Building, (Fifth & Walnut, SE corner) First National Bank Building, (Fourth & Walnut, SE corner),  and a building in which we are marketing for sale, the Penthouse Residence at 18 East Fourth Street, originally the Fourth National Bank Building.

Burnham also built the Schmidlapp Memorial Library (which is now the entrance to the Cincinnati Art Museum), added a major section to the Shillito Building, the east wing addition of the Alms & Doepke Building, and most likely designed the Maxwelton Mansion at 2220 Victory Parkway. This home is now the Guest Residences for the Edgecliff Condominiums.

Interestingly, Daniel Burnham created initial drawings for a 'Union Terminal' train station. A quote from ‘The Railroad Gazette’ reported that Burnham's plans were ‘under consideration’.

Towards the end of his career, Burnham began looking to the Roman Empire for design cues. Notice the facade of 18 East Fourth Street building or the entrance of the Cincinnati Art Museum, you will see the Roman inspired columns. Perhaps this is the inspiration for the quote attributed to Burnham; “The past is truly prologue”. This 'look-back' caused a rift in Burnham's relationship with Louis Sullivan, who was already moving to an ornamentation free style. In the span of time, we find this later Burnham style to have a unique, distinctive attraction. At the time of his death in 1912, The D. H. Burnham & Company was the largest architectural company in the world.

If you find yourself on Fourth Street near Vine, look to the North Side of the street - then look up - these are the original Skyscrapers. Landmarks in architecture. One more golden thread in the tapestry that is Cincinnati.

This younger population is often described as "Generation Y". This is meant to describe young people born between the late 70's and the early 2000's. Other names for these younger folks include "Millennial Generation", "Generation Next", "Net Generation", and "Echo Boomers". Many names, but one characteristic defines them all, a familiarity with and use for digital communications.

Recently, an article in the Wall Street Journal published a story describing the changing housing preferences of "Generation Y". This slice of the population, estimated at roughly 80 million, doesn't find the outlying suburbs very attractive. In other words, they aren't attracted to the McMansions out beyond the circle freeway.

We found this description very interesting, because it corroborates our experiences with our younger clients. When we ask these younger clients what they want in a home, one feature is nearly always in the top three- they want to be able to walk to entertainment or shopping. They often voice an interest in seeing downtown Lofts, Condominiums, or smaller Single Family Homes that don't require a lot of maintenance or yardwork.

Cincinnati has plenty of neighborhoods that suit this lifestyle. We have downtown lofts and riverfront condominiums. Two neighborhoods that attract these younger people are Hyde Park and Oakley. The reason is simple, both these neighborhoods have a bustling 'central square' which include fun gathering spots, boutiques, and unique eateries. Other neighborhoods that this population find attractive include: Bellevue, (many new condo developments),  Columbia-Tusculum, Deer Park, East End (many new condo developments), Mt Adams, Mt Lookout, Mt Washington, Northside, Over The Rhine, (many new condo developments), Pleasant Ridge, Silverton, and up-and-coming neighborhoods like Norwood and Walnut Hills.

Further from downtown, Anderson Township, Blue Ash, Kenwood, Madeira, Madison Place and Milford are also popular- again because these communities offer the ability to walk to a variety of entertainment and dining. Anderson has many shopping malls. Blue Ash has a great community feel. Kenwood is anchored by the fabulous Kenwood Towne Center Mall, Madeira is an intimate community with a lovely town center, Madison Place is adjacent to Mariemont Square and has many smaller, affordable homes, and Milford has a fantastic 'main street', access to fabulous biking trails, and a nearby nature center.

While price ranges and housing stock vary dramatically from each of these neighborhoods to the other - each offers the kind of convenience that homes out beyond the circle freeway cannot match.

Some specific preferences of Generation Y buyers mentioned in the Wall Street Journal article included: larger shower stall, (soaking tub not needed), smaller yards, (equals less yard work), large living room or family room, (big enough for baby showers and for playing the Wii with friends). Of less interest to this group are dining rooms, because this generation prefers to eat in front of the media center as they watch a sporting event with friends and family.

If you are thinking of selling your home, make sure you are aware of these preferences for this up and coming generation. If you ARE a member of the Generation Y, give us a call. We specialize precisely in the neighborhoods you are interested in.

Here's a clever website that calculates the 'Convenience Factor' of any home. Just plug in the address, and it will provide a "Walk Score" for that address! www.WalkScore.com

-RSIR

Cincinnati has seen the construction of many new condominiums. Perhaps it was the Adams Crossing got the ball rolling. Since then, we've seen many wonderful and architecturally interesting buildings ... such as The Ascent, (where we have a listing), The Domaine de la Rive, and one of our favorites; The Palisades of Mt. Adams. (We are arranging the marketing and sale for The Palisades.)

If you value inspiring panoramic views, a condominium is one of the few options where a variety of choice is available. And much of what is available is truly remarkable. Our clients are often surprised at the elegance and trouble-free life style of modern condominium living. 

If you are considering River View condominium living, check out this map we developed for Leadership Cincinnati. Just click on this link: CondoKey.

Don't forget to review our initial archived post that compares luxury home ownership costs with a similarly luxurious condominium such as The Palisades or The Ascent.

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In the past month, I've talked with several acquaintences who have told me they would like to move, but they are simply too nervous to 'pull the trigger'.

At times like this - it's important to look at things through the eyes of a realist. I'm reminded of this quote ...

"The pessimist complains about the wind.
The optimist expects it to change,
The realist adjusts the sails."
William Arthur Ward

The reality is ... homes ARE selling! In Cincinnati, almost 2,000 (1,956) homes were sold in the last recorded month. Almost 500 (491) were sold in Northern Kentucky.

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Our marketing department has installed a kiosk in the window of Cincy Designer Shoes. We've set up a large, SONY TV that displays all of our Hyde Park listings ... and a handfull of our other listings from around the area.

This isn't just a boring display of one listing cycling through after the other ... our marketing department went all out! We show home exterior photos - AND - some interior rooms, along with a variety of added information.

If you are considering selling your home, consider listing with Robinson Realtors. We think 'out of the box' for ways to promote our listings - in a quality manner.

Also, if you find yourself shopping or dining near Hyde Park Square, please stop by our Kiosk at Cincy Designer Shoes (on the south side of the Square).

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