Connecting Buyers and Sellers

Downtown Condo Connection attempts to make condominium market more transparent to everyone

ANDREW ASHBY | The Daily News

A local Realtor is looking to tap into the rising Downtown condominium market by providing an information center for potential buyers in the 38103 ZIP code.

Kendall Haney, owner of Kendall Haney Realty Group at 612 S. Cooper St., early this month opened the Downtown Condo Connection at 408 S. Front St. as a resource for potential buyers who might be confused by the sheer variety and availability of the area's condos.

In April 2006, 33 condos were sold in 38103, according to real estate information service Chandler Reports, www.chandlerreports.com. The average sale price was $188,301 and the average square footage was 1,161. In the first three months of 2006, 79 condos were sold in 38103.

The number of sales shows a steady rise from April 2005, when 10 condos were sold in 38103, with an average sales price of $179,530 and an average square footage of 1,383. In the first three months of 2005, 22 condos were sold in the same ZIP code.

Needles in a haystack

Many different real estate companies represent various Downtown condos, so it can be difficult for buyers or the Realtors representing them to get a feel for the entire market, which consists of more than 500 units spread across 43 buildings. Add in the 20 planned condo buildings and the 13 currently under construction, and it can be challenging to find the right unit.

"It's so hard to find out who's got them listed, where to go and where they're located," Haney said. "It's difficult for us as a Realtor, so it's definitely difficult for a buyer with no Realtor."

The Downtown Condo Connection actually is a converted condo in the Paperworks Building. It has a kitchen, restrooms and office space for three agents and an office manager.

The office contains information about every condo in the Downtown market, from a $59,900 unit in the Claridge House on North Main Street to a $613,000 model at the Shrine Building on Monroe Avenue.

DCC agents have created a book with floor plans, photos and information on condos that are for sale, as well as many that have yet to be built.

To narrow down what potential customers might want, Haney said agents ask questions about what the customers are looking for, from covered parking to river views.

"Then we can pinpoint certain buildings that will fit your needs," Haney said.

A piece of the pie

After discerning what buyers want, DCC agents call the condos' in-house real estate agents and set up a time to show the property.

It's a free service for buyers because sellers pay the commission. It's also good for the agents because it brings traffic to their offices.

"Every Realtor we've talked to has been happy to see us," Haney said. "It's a win-win because we can help them sell their condominiums."

Since DCC opened at the beginning of the month, the office has been getting two to three visitors a day just from the signage outside.

Principal broker Sue Tines said the company's e-mail list has been popular with visitors. After getting e-mail addresses from potential customers, Realtors can send them information based on their criteria, such as square footage or the number of bedrooms and bathrooms they'd like to have.

"That's less invasive on them, to do it that way," Tines said.

Tines has been in the Memphis real estate business 31 years and helped train Haney more than 20 years ago. She said all the in-house agents she deals with at the condos have been receptive since they can't leave and show buyers different properties around the Downtown area. The DCC Realtors can bring buyers to various properties, splitting the commission with the condos' real estate agents. Total commission for agents usually is 6 percent, with 3 percent going to the DCC agents and the other 3 percent going to the selling agents.

"They're glad for you to show the properties," Tines said. "They would rather have a piece of the pie then none at all."

Diversity of services

In addition to helping potential buyers find a condo, DCC also offers in-house mortgage lending. And the company is taking advantage of what Downtown has to offer. The company recently bought six trolley passes to take clients around various properties.

"It helps these condos that are on the trolley line," Tines said. "It helps people to understand how you can get around Downtown with it."

DCC affiliate broker Theresa Mynatt came back to Memphis after working in the Salt Lake City real estate market for five years. She said she thinks an event like the Vesta Home Show, which was held in the South Main Arts District in March, brought more attention to the growing Downtown real estate market.

"When I left, none of this was going on," Mynatt said. "I had heard rumors about people moving into the South End, but driving around it was like a ghost town full of nothing."

Young sees people moving back into cities as a nationwide trend.

"They want to get back into the city, away from the upkeep of a big home and the commuting," she said.

As an example of how the Downtown condo market has matured, Tines brings up the Claridge House, at which 400 hotel rooms were converted into 155 condos in 1985.

"The market was not ready then and they rented many of them out," she said. "Now, the market is ready and they have sold over 50 percent of their stock - just like you've seen the boom happen in Collierville, the boom happen in DeSoto County or the boom happen in Fayette County. Well, the boom is happening in Downtown Memphis right now."

Housing slowing in most regions, Fed says

By Rex Nutting, MarketWatch
Last Update: 4:05 PM ET Apr 26, 2006

WASHINGTON (MarketWatch) -- Home sales and construction are slowing in most regions of the nation, according to anecdotal accounts reported by the 12 Federal Reserve banks on Wednesday in the Beige Book.
"Most districts report cooling and moderation in their residential real estate markets," the Beige Book said. "In general, year-on-year price appreciation seems to be lower than in quarters past, with [Fed banks in] San Francisco, Cleveland, Kansas City, Richmond, New York, and Boston all reporting more modest price growth in residential sales." See full story on the Beige Book.
The Dallas region was an exception, reporting "particularly strong residential sales." The Dallas district encompasses Texas, southern New Mexico and northern Louisiana.
Inventories of unsold homes were said to be growing in the Kansas City, Minneapolis, Chicago, Atlanta, New York and Boston regions.
Almost all districts reported declining demand for residential mortgages. Read the full report from the Fed.
The Beige Book included information collected before April 17. In a separate report, the Commerce Department said sales of new homes jumped 13.8% in March. See full story.
Here's a look at housing in each region of the nation, according to the Beige Book:
Boston
The bank's contacts in the industry "uniformly cite a continued slowing" in sales. Inventories are climbing, and prices are leveling off. The slowdown in price appreciation was seen as a positive sign. "The general expectation is for prices to remain steady and for the sales pace to be slower than in recent years past," the Boston Fed said.
New York
The housing market was "mixed but generally softer," the New York Fed said. Prices of new homes had leveled off, but builders had not yet slashed prices. Inventories of unsold existing homes rose sharply to a seven-month supply. The Manhattan market for condos and coops was "mixed." Prices were flat from the previous quarter and the inventory of apartments on the market was up 60% from a year ago.
Philadelphia
The demand for residential mortgages slowed, the Philadelphia Fed said.
Cleveland
While builders reported sales strengthened from weakness earlier this year, sales are down compared with last year. "Accordingly, prices are rising less rapidly, with many builders more willing to discount," the Cleveland Fed said.
Richmond
Realtors reported "generally slower home sales and more moderate price growth," the Richmond Fed said. Buyers were taking time to shop around. High-priced homes were staying on the market longer. "It's clearly a buyers' market now and buyers can negotiate better prices," a contact in Washington said.
Atlanta
Home sales softened in some parts of the district and fell in Florida from record levels. "Despite this, single-family construction remained strong as builders worked to fill the backlog of orders made last year," the Atlanta Fed said. Condo sales in Florida weakened.
Chicago
"Construction and real estate activity was mixed by both location and market segment," the Chicago Fed said. Sales softened in Illinois, Indiana and Michigan, but sales "recovered some" in Wisconsin. Construction of new homes was slowing. Inventories were rising.
St. Louis
Home sales were mixed, the St. Louis Fed said. Sales were stronger in Memphis and St. Louis, but were down in Little Rock. Home building slowed in most areas.
Minneapolis
"Residential real estate softened," the Minneapolis Fed said. Building permits were down 10% in the Twin Cities. Plans were recently announced for a major new developing in Sioux Falls, S.D.
Kansas City
"Residential construction declined somewhat," the Kansas City Fed said. Builders expected further declines, although building is strong in some areas. Home price appreciation remained modest. Inventories were rising. Realtors expect sales to be little changed in coming months.
Dallas
"Construction and real estate activity accelerated, boosted by vigorous homebuilding and mounting commercial construction," the Dallas Fed said. "Residential markets remained strong." New home sales were at record levels in the first quarter. Contacts are confident the real estate market in the district will be unaffected by a national slowdown. Increased buying by investors was reported.
San Francisco
"Residential construction, sales activity, and price appreciation slowed slightly in most areas," the San Francisco Fed said. Residential markets were active, but moderating. Higher inventories and slower price appreciation "suggested significant cooling in most areas." Utah and parts of the Pacific Northwest were exceptions. "Mortgage lending, particularly in subprime categories, fell somewhat from very high levels."