The New Orleans Condo Market is not that bad….2011 Update..Demand is up and supply is down.

      The New Orleans Condo market in 2011 is much better I expected in the City of New Orleans.  There are a variety of reasons for this that are unique to the New Orleans condo market.  It all has to do with supply and demand.  But what is causing the demand and lower supply.   One caveat is that people are much more picky about the selections than in years past. 

       The Second Home Marketis much stronger than it has been is many years.  You have people that have deep connections to the City of New Orleans wanting to come back and enjoy what it has to offer.  Its fueled by Baby Boomers to experience the unique flavor of South Louisiana.  Its fueled by people who just want to be here that may have visited and thought this would be a place to be and enjoy.

    The Business Market  is much like the second home market and can be called a close cousin  to the second home.  People working in New Orleans often have several locations and have people living here for extended periods of time.  The workers want something more than an extended stay hotel.  The business can use this for living arrangements  for customers and guest.   

   The Student Market  is still strong when families consider the rents they will have to pay over a four or five year period.  Its easy to pay $50,000 to $75,000 over four or five years of rent.   You look at the amount of students from Tulane, Loyola, Xavier and UNO that come to New Orleans to study for undergraduate and graduate degrees and you always have a new flow of students. 

      You add to that mix the Medical Students from Tulane and LSU and you have a sizable group of new buyers.  You also add all the medical residents and those studying for specialities and you have added demand.  Condo living is ideal for those studying and working long hours.  Just a lot less to take carer of.

     Rents are not cheap and easy to find Its is not easy to find affordable rentals where people want to be.  There have been many rental units added to the market but condo owners can easily rent their units out rather quickly at nice rents.  Many owners have opted to rent keeping more units off the market.  It has become a good investment.

    Investors have also been buying  With interest rates on peoples money running often at 2% or below many are finding it lucrative and fun to make money off of a condo rental.  Many are buying to rent and later will plan to live in the area.

 New Orleans Condo Market better in 2011

       Cash sales and Large down payments have kept the number of short sales and foreclosures to a minimum for the number of condos in the market.  Lately the prices on these units have been very good and sell rather quickly.  A decent unit does not stay on the market long.  The banks price these condos to sell and know little about the New Orleans market which is great for the willing buyers. 

     The Mitch Landrieu effect has not hurt the condo mjarket.  The can do attitudeis alive and well as people are just feeling better about the direction fo the City Of New Orleans.  People from all walks of life and incomes do notice this.

     There are other factors at work as well but I can save that one for another blog.  The City is becoming younger and condo living is appealing to that group.  The Housing market is much better in areas where most of the condos are.  As houses become harder to find then the condo option becomes a viable option.  This is currently the case in Uptown, Garden District, French Quarter, Marigny, Bywater and Lakeview where nice homes are not easy to find.

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA