Welcome to Gorman :: News & Awards

The real estate industry here was hoping spring would bring better times but so far things aren't looking much brighter.

The best news is that housing starts in Dane County actually started heading in the right direction after hitting bottom in 2006.

There were 152 permits issued for new single family homes and duplexes here in May, up from the 134 permits issued in May 2006.

That's a positive development for the myriad of industries linked to real estate -- everything from lawn care and air conditioning to roofing and insurance.

But a closer look at the numbers shows the housing picture remains pretty bleak.

Despite the uptick in May, housing starts year-to-date in Dane County remain below last year: 522 permits in 2007 vs. 693 in 2006. Compare that to 2004, when there were 1,068 housing starts through the end of May.

In fact, the number of housing starts year-to-date here is the lowest number since MTD Marketing Services of Neenah began tracking them in 1999.

The other disturbing news on the real estate front is that foreclosures continue to rise in Wisconsin, up over 20 percent compared to the first five months of 2006.

And things have gotten so bad even the banks are taking it in the shorts.

Consider that Madison-based Anchor BanCorp announced last week that earnings for the fiscal year ended March 31 were down nearly 13 percent over the previous year, falling to $39 million from $44.7 million.

The last quarter was even worse for Anchor, with profits down nearly 29 percent to $8.2 million from $11.5 million over the same period in 2006.

The "sluggish housing market" was a major factor in the poor results, Anchor president Doug Timmerman explained in the earnings release.

Most significantly, Timmerman said the situation has led the bank to increase its provision for loan losses this year to $11.3 million from $3.9 million for the previous year.

There is a silver lining to the housing slump, however.

The average value and size of new homes being built this year has actually declined, falling to $242,153 vs. $251,823 last year. The average square footage is down to 2,349 vs. 2,501 last year.

So maybe the trend toward larger and more expensive "trophy" homes is finally ebbing. Who wants to clean 2,500 square feet of house anyway?

Milwaukee project: Gary Gorman wasn't able to pull off a much-needed high-rise development project on East Washington Avenue last year but he's scoring points with the city of Milwaukee.

Gorman & Company has just received an Urban Design Award in the "Big Deals" category for its Park East Enterprise Lofts development. Set just north of downtown, Park East is a project to revitalize remnants of the abandoned 1960s plan to encircle downtown Milwaukee with freeways.

The Park East Enterprise Lofts is a $12.5 million, four-story urban infill project designed by Gorman & Company in partnership with PDI, a Milwaukee design firm. It was recognized by Milwaukee for its "quality of affordable housing with an entrepreneurial focus."

Milwaukee Mayor Tom Barrett presented the award during a ceremony at the University of Wisconsin-Milwaukee's School of Architecture and Urban Planning.

"As the first residential development completed in the Park East corridor, the Lofts have spurred economic growth and revitalization in this emerging neighborhood," Barrett said in announcing the award.

Included in the Park East Enterprise Lofts are amenities aimed at attracting entrepreneurs as well as creating a sense of community. They include gathering areas for social networking, conference rooms for private business meetings, a fully-equipped business center, a theater/presentation room, a fitness center, retail space, and 85 units of townhouse-style residential live/work units and apartments.