Archive for November, 2008
Warehouse District Condos, Market Update for December 2008. Buyers Market?
November 30th, 2008 categories: Market Trends, Warehouse District
Lets get a feel of the Warehouse District Condo market before getting into the numbers. It is definitely a Buyers Market but the supply is not overwhelming. Many sellers are still asking too much for what they are selling their condos for. The prices are too high in many cases and the units are not appealing. The upper end of the market is the slowest and oddly enough the mid range market seems to be doing OK. This generally happens this time of year but do not get the feel that many buyers are looking in this range.
The interest rates are extremely good so expect some pickup starting at the bottom end of the market and working its way up as we go through the holidays. The MLS shows that there are 161 units listed for sale as of today. You however are looking at 11 pre-sale units at the Tracage, 11 units at 835 Julia Street, 20 units at the Rotunda, and 11 units at 1201 Canal Street Condos. Over a third of the market is these new complexes.
There are 30 units over 500k which is always slow this time of year. There are 35 units under 200k. This segment of the Warehouse District Market is one that is always fairly active. The problem is that many of the units are unappealing for the prices being offered.
I will review the more popular Warehouse Condos associations that are normally attracting attention this time of year. They also comprise a major share of the listings below 350k.
The Cotton Mills Condos which is always a good choice for a condo has 17 units for sale. Out of the 17 units there are two nice buys at the prices being offered. Many of the rest are just overpriced and have too many negatives. The Cotton Mills remains popular since it offers plenty of amenities that people want with low condo fees. Last year at this time there were 5-6 very good buys. Read the rest of this entry »
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New Orleans French Quarter, Bright Historic Shotgun Faces! Where ya at?
November 27th, 2008 categories: French Quarter, Historic Homes
Happy Thanksgiving! Hope everyone is full of turkey and had a good time with family and friends today. You always eat too much! That is easy to do in New Orleans. Just wanted to share some of my recent photos using www.picnik.com to do some fun things. The initial version is free and only $25 for the fancy version. I use it weekly so its a good buy.
The New Orleans French Quarter has been here since 1718 but these shot guns came much later and were not mansions. Just wanted to call to the attention of detail with the Victorian gingerbread work that became popular from 1830 to 1910. The owners of these shotguns could dress them up with the style of the day which was Victorian Gingerbread work. They could also be very creative with the colors not of American but those of the West Indies. I guess you could say they were works of art since they are found in few places beyond the New Orleans area that I know of.
The New Orleans French Quarter and the historic homes brighten the streets and the lives of the people living and visiting the area. Its a mixture of Creole, West Indies, Italian and Irish who settled in in these shotgun neighborhoods. Much of the style is dictated by the hot humid climate in which we lived before autos and A/C. My guess is most of these shotguns were built around 1900.
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Buyers Market Update for New Orleans Condos, Interest Rates drop Big Time!
November 26th, 2008 categories: Market Trends
Interest rates dropped to the mid 5% range for a 30 year note. This is the lowest I can remember rates being in the last several years. This is a key indicator of a buyers market along with an ample supply of willing sellers. I expect the rates to remain volatile so if you can take advantage of them its a great time to find a deal. No telling when they will go up.
With that said you still want to search for the condo that will have the best chance of reselling in the future. A .5% drop is equal to $64 per month on your note. You should also be able to get a seasonal discount as well due to the timing of your purchase. Less Buyers are in the market this time of year.
There is a decent supply of condos on the market at all price ranges but it still remains easy to get to the top 5 choices once I know the price range and type that you want. You can basically still see all the availiable units in an afternoon. Just did it Sunday in the Warehouse District.
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Buyer’s Market in New Orleans Condos? More than just one factor is involved?
November 23rd, 2008 categories: Condo Knowledge, Market Trends
There are several factors that make this a New Orleans Condo buyer’s market. A Buyer’s Market is when the buyer has the upper hand in negotiations and pricing. Many buyers go to the side line when times are uncertain but that is the time when you can actually get some good buys across all price ranges.
Low Interest Rates are a big factor. There is plenty of money to lend to people that have good credit at some very good interest rates. The rates are around 6% which means you will pay $60 for very 10k borrowed. Borrow 100k and your principle and interest is $600 monthly. Rates may continue to fall.
Supply of condos is good meaning you are having the sellers compete for your business. They have to be best in class to sell. Law of supply and demand works well.
Sellers are willing to make deals. The market is not that bad but the media influences sellers decisions making them come to terms more quickly. They can relate falling stock prices that have been cut in half relative to New Orleans real estate values. Many sellers just want to sell at very reasonable prices due to changes in there lifestyles.
Seasonal influences do have an effect. A buyer can always save $5,000 or more by buying in the winter when less people look. This repeats itself over and over again in good and bad markets. Its timing that holds true over my real estate career.
Condo Fees have been very steady and have remained flat since 2007 as the Katrina cost have worked its way thourgh the system. Insurace rates have dropped as associations have gotten better deals in 2008.
Tax credits of $7500 if you have not bought in the last 3 years. Property taxes in New Orleans have dropped 29% in 2007 and continue at that rate today. There is Bond money and other assistance programs in Jefferson Parish.
Sellers are beginning to price aggressively. This is not the case for all sellers but many are beginning to price aggressively. A good buyers agent can help you in this process to know the trends and why things are priced as they area.
Developers Interest rates are going up. Odd thing is their rates are going up while your rates are going down. You may find a developer who has one unit or a few left in a building that he may just want to unload. If you like the units you can get a very good deal on these.
Foreclosures are Rare in the New Orleans Condo Market that I work as most people sell before they get to this point. There be be a few but not many in the places where you would want to live.
There may be other factors as well that you can comment on? They are welcome!
It get harder to buy now but this is when you may get a deal and save money in the long run. It could mean money in your bank and not your landlords pocket. I have friend who has now been renting for $1300 per moth for 6 years for a payout of $93,000 waiting for the right time to purchase. She has nothing to show for it at this point. When is her time? Now may be a great time and it could get better.
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Federal Fibre Mills Condo Listing! Getting a taste of the complex from a listings is a plus.
November 21st, 2008 categories: Condo Listings, Warehouse District
This is a new listing that I just listed at the Federal Fibre Mills located at 1007 South Peters in the New Orleans Warehouse District. The listing will give you a glimpse of the lifestyle of the complex. You can see more photos on my website #213 Federal Fibre Mills. The unit is a good example of what the nicer one bedrooms will look like. Most of the one bedroom units are loft style units that feature high ceilings, large windows, street views, exposed brick, and exposed beams. The exposed bricks and beams are still very natural.
What really makes the Federal Mills condos one of the better places to live or have a second home is the common areas. The pool and lush courtyard along with an exercise room and party room are second to none in the Warehouse District at this price range or any price range for that matter. Other nice features is that all units have secure parking in the secure parking lot. The on site security and management are also a very positive feature. The large party room is very unusual because of its size and location on the courtyard.
The condo fees do include the a/c for the complex. This will not be in your electric bill so your bills on a unit like this may average $60 per month. Insurance, upkeep, water, and security are in your condo fees. Take a look at some of the past articles on the Federal Fibre Mills: Best Common Areas-Federal Fibre Mills , Federal Fibre Mills Review.
| Discussion: 4 Comments »
Cotton Mill Condos in New Orleans Warehouse District, Taking a look at my past sales! Most Affordable!
November 18th, 2008 categories: New Orleans Condo Reviews, Warehouse District
The Cotton Mill Condos may be the most affordable condo complexes in the New Orleans Warehouse District while at the same time having some greatest amenities at these prices. People like the historic nature of the Cotton Mill Warehouse condos that include:
- High ceilings, easily reaching 18 feet in most of the units with a few taller ceilings
- Wood floors, In many unit the original floors have been left, some have new floors
- Extra large windows that shower the condos with plenty of light
- Exposed brick in most units on the exterior walls, exposed beams add to the feel
- Large 25,000 sq. Courtyard lushly landscaped with tables, chairs and walkways
- Large pool and exercise room, save on gym membership
- Secure entrance with security at all times
- On site Management to take care of issues when they happen
- Many units are under 200k, resale value is good if you chose the correct unit
- Its the location that sells it to many buyers
I have included some of my listings at the Cotton Mill that I have had so you can get a more in depth look at some of the features and a more up and close feel. I have probably sold three times as many as the complex started selling in 2005. These are links to my website if you would like to see. The units are all very different so check the units out.
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New Orleans Warehouse District Condos- Julia Street can be considered Main street or the center of the Warehouse District!
November 16th, 2008 categories: Warehouse District
The New Orleans Warehouse District is an area of Old Warehouses, office buildings and new construction that features condos as the primary form of residences. This is the New Orleans answer to downtown living. The center of the area is Julia Street for several reasons, its the geographic center and a large majority of the condo complexes are on Julia Street or the immediate area.
Julia Street is home to several condo complexes that have sprung up over the last 5-6 years including Magazine Place , Gallery Row , Julia Place , The Lofts , The Rotunda, and 835 Julia Condos. Julia Street is home to the Children’s Museum, offices, hotels and numerous art galleries. At the end of Julia nearest the Mississippi River is the beginning of the River Walk shopping complex as well as the New Orleans Convention Center.
The Julia Street location is an easy walk to the New Orleans French Quarter. The interstate is blocks away so its easy to go East or West on I-10. Harrah’s Casino, Fulton Street, Audubon Aquarium, and various hotels have a very large presence near the New Orleans Convention Center. The central location has made the area a favorite spot for second home owners as it is very family friendly. Its an easy walk to many of New Orleans better restaurants.
The New Orleans Warehouse District is within walking distance to the downtown area so it has become a trendy place to live for young professionals who chose an urban lifestyle. It has become a favorite place for medical students, residents since the Warehouse District and Julia Street is about a mile away from Tulane and LSU Medical Schools.
The Julia Street area is ideal for walking. The St. Charles Ave. street car line crosses Julia Street in the 600 block. This makes it an easy ride to Uptown New Orleans. The area got its major lift with the expansions of the New Orleans Convention Center, New Orleans Area-Home to the Hornets and the Super Dome activities. The Convention center attracted more hotels to the area and the attractions and living experiences have expanded since the early days.
I used picnik.com for the photo program that is free to use and experiment with before getting the upgraded version of around $25 per year. I used the free version for a while and found it to be a great buy, lol. Its well worth trying.
| Discussion: 2 Comments »
New Orleans Condos- What do condo fees Cover? Most often asked question? Who pays the Insurance?
November 12th, 2008 categories: Condo Knowledge
I get this important question asked about condos very often. Who pays for the homeowners insurance? Many buyers are surprised to learn that the condo fees cover property and casualty insurance on the individual condo and common areas. I always think people know this but lets talk about it a little more in detail. In order to get a loan from the lender, they will make sure the condos have the proper insurance to protect their investment. If the condo is in a flood zone then it is required to have flood insurance as well.
The highest deductible that most lenders will allow is 10% with some reserves to back that number up. Many complexes have a 5% deductible. They also look at reserves and pending lawsuits to make sure their investment is safe.
The condo fees do not cover your contents and those policies are easy to get often costing less than $500 per year do up to 40k of coverage. Rarely do I hear of people using this but its better to be safe than sorry.
The insurance is often the major item in the condo fees. In small associations it is many times over 50% of the fee. The next largest item in condo budgets is the upkeep of the property.
The larger the condo association the more people are paying for the common elements and generally the fees tend to be lower. Other things that are normally in the fees are water, common electricity, security, pool maintenance, clean up, termite contracts, landscaping, salaries, elevators, condo reserves and management fees. Most condos I sell are managed by a professional often on site for the larger units and off site for the smaller units. The smaller units are managed by the owners.
The fees are generally based on the size of the unit when the condo was originally old. Condo fees go up when costs go up or the majority of owners want to add more services. As a member your vote and voice counts. Making sure the complex in top notch shape is the best way to protect your values. I do see where this is not done and the value craters as no one wants to live there.
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How much is this New Orleans Condo worth? What should my offer be?
November 8th, 2008 categories: Condo Knowledge
An experienced agent will tell you, its not what the seller’s are asking. But more what the condo is worth. The seller may not be asking the correct price! So its not how much off that you can get of the asking price. If a seller is more than 10% over the correct price the condo will get stale and lose its shopability. They may not know how to figure out the value or may just want to see if it gets more. There are many variables when pricing a condo and all these may not be taken into account by the agent and the seller. Many times the seller cannot look at the numbers with an open mind and wants more than its worth.
Sometimes however sellers just want to sell and will put a very good number on the property. In these cases the seller may come of little if the value is there. Sometimes the agent does not know the correct price and advises their client wrong. Both find out the error in time. I have made the pricing error as well. This happens when there are not many numbers available to draw a conclusion.
When valuing a condo here are some steps to take- Its More than just size or square footage. It is important but certainly not the only factor in the pricing?
What are condos in the building selling for? How is this condo any different than the others? How does the condo rank with the competition and the recent sales?
Is the unit updated? Anything special that was done to the unit. What has been updated, Kitchen and baths? What would it cost to update?
What floor is it on, first floor units tend to go for less. What is the floorplan?
What is the view, this is a large factor. How many windows does it have. No one likes a dark condo without light. Do you have value in a balcony or porch? Certainly?
What are the negatives of this unit? What are the positives? What are the Condo Trends in the area and the building?
Does the unit have parking, parking can be a big plus in urban areas such as the French Quarter, Warehouse District and uptown New Orleans.
What are the floors? What type of flooring, carpet is out. Are the appliances new?
Is the square footage all one one level? This is more valuable than loft space made within the unit. Does the unit have high ceilings to give it a bigger look?
Andrew Jackson may not know what the condo is worth! But Eric will! In the end you are going to rank the condos in your order of preference. You are going to look at all the pluses and minuses when figuring out which is your favorite unit. Then we can figure out what the correct price of the unit is. We may be able to get it for less than the numbers say.
The market has been very stable for 3 years so values are also very level for most and up for only the better units. Some sellers may have paid too much and those sellers just take longer to adjust to the correct price.
The sellers motivation is also a key factor. Always a good idea to find this out. In this current buyers market there will be some good deals as some sellers just want to sell. Many remain stubborn but tend to come around as the bills come due, taxes, condo fees and no rent coming in. A 200k condo can easily have a carrying charge of 1500-1700 per month. Waiting 3 months can easily cost a seller $5,000 that will never be seen again.
Many time developers only take the size into consideration. You can get some great deals that add to your resale value. This happens more than you know as its not easy to get the values right. You take a chance in a new building but the value is there if you choose correctly. The listing agent may never let you know.
As an experienced buyers agent I can help you with this. I have always put a lot of emphasis on the resale of the unit. I know what most people want and what the most popular features are. I also know what things they do not like and issues that are harder to overcome. I can rank the unit in terms of the past sales to see where your favorite may rank. Seeing and showing the areas makes this a much easier process.
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New Orleans Condos- Conforming Loan Limits Remain. What does this mean for you?
November 7th, 2008 categories: Julie's Mortgage Tips
For most of my condo buyers this means little unless you are going to borrow more than $417,000. Borrowing more would put you into the jumbo rate category which is a lot higher rate in today’s market. If you buy something for 500k and borrow 400k you would then get a conforming loan.
CONFORMING LOAN LIMIT FOR U.S.
TO REMAIN $417,000 IN 2009;
DIFFERENT LIMITS IN SOME AREAS
WASHINGTON, DC – “The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.
According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year. Loan limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S.
The national limit was left unchanged at $417,000 based on declines in FHFA’s monthly and quarterly house price indexes over the past year. The monthly purchase-only index declined 5.9 percent over the 12 months ending August 2008, and the quarterly all-transactions index dropped 1.7 percent from second quarter 2007 to second quarter 2008. Virtually every other measure of house prices has also fallen, with many showing even larger declines. FHFA has not yet determined whether it will continue to use a currently existing FHFA price index to gauge price movements in future years. For this year, however, all reliable metrics point to lower prices, and a price decline of any size is sufficient to determine that the national limit will not change. ”
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