Archive for August, 2011
The New Orleans Condo rental market continues to be tight….
August 25th, 2011 categories: Condo Knowledge
The New Orleans condo rental market has been great for the last 5 years if you are a landlord. Its much harder if you are the renter. You almost have to fall into some of the best places.
There have been few new condo developments to come on line as demand has been steady. There has been big increase rental units downtown and along the Tulane Avenue corridor nearer the medical schools were added to the mix from the “go zone” tax credits following Hurricane Katrina. Makes you wonder why the government is making it so hard to get things off the ground. In real estate things are all local but rules are made for Vegas and Miami.
The New Orleans condo has been strong as with the Warehouse District having the premium locations. The Jefferson Parish Market is not as good but has help steady well. Now for the reasons this may be so. It get down where people want something safe, historic and very walkable neighborhoods.
The movie industry has created a lot of demand for people wanting a furnished or unfurnished places from 3 to 6 months. These guys want to experience New Orleans and I am sure many come back year after year to work. Some have already bought places and rent them out when they are not here.
Jobs being shifted around, New Orleans has had opening for jobs and people are come here from all areas of the South to work. They are looking for much the same thing. The companies are putting them up here and they like to experience urban living. The most adventurous and motivated come.
More students and younger new people have moved here. New Orleans is a much younger city now than it was 5 years ago and condo living suits the young people better. Tulane Med. School and LSU Med schools are almost in the Warehouse District. Law Students from Loyola and Tulane are always looking for condo rentals. Then more young people are coming for the opportunities which was never the case before Katrina.
Buying is being off due to uncertain economic times. Higher down payments have made it harder to buy. Many of these people opt to rent to see if they are going to stay in New Orleans. A percentage of these people will buy but they need to save a little before jumping in.
The housing market in some areas of New Orleans are hot right now. These areas of the Garden District and Uptown are leading the New Orleans Housing Market.
These are all great for landlords and have helped steady values. There are fewer foreclosures and short sales when your unit can easily be rented out. They now become great vehicles for nice returns. I am always looking for deals but they have been hard to find unless you are patient with the process.
One note on Fannie Mae repos is that the people that will live there get the first 15 days to get the bid in. They go fast and you may have to pay higher than the asking price but you will still be 20% or more under the market price. The clients that want the best possible deal usually miss out and lets someone else get a great deal. People that do this for a living see it all the time.
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This weeks condo trends in New Orleans ! Business picking up…
August 19th, 2011 categories: Condo Knowledge, Market Trends
1. Interest rates hit the 4% range this week for a 30 year fixed rate. Lowest rate in years. This means it would be a great time to refinance and save big time. The prices on comps in some areas are great for an appraisal and not so good in others. But this is the time of year that the premium condos have sold in the last 6 months and these should be good numbers. Getting 20% equity can also get ride of the PMI, or private mortgage insurance.
2. Rental Market is very strong Many people cannot buy for one reason or another. These future buyers maybe on the fence about buying. They are paying strong rents for the hot areas where people want to live. The mortgage lending institutions which is the Federal Government have made it very hard to new projects started and financed. Even if the demand is in New Orleans, it is the one size fits all approach for Fannie, HUD and Freddie.
3. Furnished and Corporate rentals are great. The movie business has a lot to do with this segment of the rental business. Add in the various construction projects and this is where most of the demand is coming from. It has been strong for the last two years and continues into the Summer of 2011. You can be getting close to $2,000 or more for a one bedroom in the Warehouse District of New Orleans
4. The demand for the one bedroom condo is back. For the longest time people have been wanting two bedrooms but the one bedroom demand has come back. The units need to be priced correctly and have to be updated to get the sale. Its always easy to spot the overpriced things in this market.
5. A shortage of large units in the 1500 sq. ft and up below $500,000 These are empty Nester’s looking for a home and they need more room, parking and something updated as they want to be full time residents. Walking and not using a car to go everywhere is a big plus. This is happening in the Warehouse District and the Uptown neighborhoods. There has not been a new supply put on the market in several years in terms of a new development of any scale. The New Orleans Condo Market is ripe for this.
6. Foreclosures and Short Sales are in short supply Not many in the last 6 months in the areas where I work. I know there are some foreclosures in the pipeline and they tend to go fast. The prices are generally 20% below the market value and people quickly pick up on the good prices. Owner occupied gets first crack in may cases. This cannot be an investent or second home when the units go on sale in the first 15 days. You have to be ready but the deals are there. Getting a pre-approved is a must….and you need Patience….. Get on my list now and get ready….
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The Cotton Mill Condos win the “Windows Contest” in the New Orleans Condo Market….
August 16th, 2011 categories: Condo Knowledge, Warehouse District
The windows at the Cotton Mill Condos located at 920 Poeyfarre in the Warehouse District win the “most attractive window contest”. Built around the turn of the 20th century this historic warehouse conversion has hundreds of windows that look out on the streets of New Orleans as well as a large interior courtyard. The large windows flood the condos with natural light.
The Cotton Mills Courtyard is 25,000 sq. ft of trees, tables, swimming pool, and place to sit and take it all in. A lot of the windows still work and when it cools off you can open them to enjoy the fresh air. The ceilings are 16-18 foot high so they tend to fit in well. All the units have exposed beams and bricks combined with the large windows gives you that true Warehouse feel.
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Julia Place Condos in the Center of the New Orleans Warehouse District, New Listing under 200k with parking…
August 15th, 2011 categories: Condo Listings, Warehouse District
The Julia Place Condos located at 333 Julia Street are in the center of the Warehouse District with walking distance of the Super Dome, French Quarter and St. Charles Streetcar line. Julia Place has been improving over the last couple of years as a condo association. The condo fees remain low and the building looks even better. The condo association recently won a judgment against the developer for a new roof that had to be put on the building. The money has flowed back into the treasury of the condo association.
This condo is priced at $199,410 and is on the fourth floor facing an open atrium that gets plenty of natural light. The condo has been updated with a newer kitchen and bath. The rooms are large for a one bedroom condo in the Warehouse District. All appliance stay with the unit including a stack able washer and dryer. The two best things about this unit is that it has gated parking in the lot adjacent to the garage for easy entry. This cost $25,000 and is worth every penny. You do not want to buy a unit in this building that does not have parking. The other nice thing is the $229 per month condo fee.
The condo is 667 sq. ft of living with multiple windows to the outside. The bedroom and livingare good size with higher ceilings and concrete beams throughout the condo. This is one of the better under 200k units in the Warehouse District that comes with parking. You add in a nice condo building with a rooftop pool, great rooftop views, clubhouse, exercise gym and you have a winner.
Julia Place has 101 units but it covers an entire block that has 5 floors with parking and commercial space on the first floor. There are also two buildings that make up the condo association plus the parking lot on Magazine Street. The condo complex is professionally managed and well maintained. It is type of condo you can leave for several weeks or months and nothing will happen.
I have sold 7-8 condos in this building since the developer sold out in 2006 to a variety of clients who all enjoy living here for the amenties and the super location in the heart of the New Orleans Warehouse District
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Audubon Trace Condos in Jefferson, A great Choice near the Mississippi River….
August 11th, 2011 categories: Condo Listings
Once a drive in movie, Audubon Trace sits on 15 acres off Jefferson Highway near the Mississippi River and Jefferson Playground. You are surrounded by green spaces in townhouse style condos in a country setting not very far from the city. Its just one of the few planned communities that were ever developed in Jefferson Parish. You are 10 minutes to Uptown New Orleans via River Road. I just listed this wonderful condo at 1104 Audubon Trace and it is priced to sell at $179,904. It is two bedroom and two bath condo with over 1300 sq. ft. of living area with cathedral ceiling, a balcony of the living area, and a patio off the master bedroom. Its just a peaceful place to live. Have a pet or like to be outside you have plenty of places to walk, ride or run. You are near the Mississippi River Levee and Jefferson playground. The open floor plan features an open living area with wood floors that opens onto a kitchen at one end and a balcony at the other end. The kitchen has been updated with new cabinets, new appliances and new counter tops. There is a full size washer and dryer hookups down stairs. Both bedrooms are down and the master has plenty of storage, a large master bath and opens to your own privated patio and small yard that is surrounded by gardens and trees. Its my favorite floor plan in Audubon Trace and it could be yours at a great price. Interest rates were 4% today, Wow… I could keep going but take a lot at the photos to get the feel of country living within a bike ride to New Orleans. Maybe a long bike ride for many.
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Real Estate Pricing, its not how much you get off the price that counts….
August 4th, 2011 categories: Buyers Agent, Condo Knowledge
It is always amazing to me that buyers base their decisions on how much they get off the asking price when buying real estate. After 15 years and over 6oo sales I still run across this with particular clients on a regular basis. Most of the time these are out of town buyers who know little about real estate in New Orleans and the surrounding areas. They love to use square footage prices as a basis for their facts.
This method of evaluation for pricing is a starting point. Real Estate is all local and location within even small areas matter a lot. Several blocks one way or the other can see real drops in value. In the condo market the pricing by foot does not take into account features that people will pay dearly for. Some of these items include garage parking, balconies, patios, premium units, great views and a great street with an area. To exclude these factors is pure folly.
As an agent we try to focus on the resale value and help our clients see this as they make their choices. The premium units that have all the pluses are doing the best even in a weak market. The units that need things are going to be priced lower. These should always have a risk factor built in as things may end up costing more.
When a agent gets a listing these days many more sellers will listen more intently when pricing their property. It is easier to get sellers in the beginning or with a specified time period to review the pricing. This should take place in the 30-45 day period. Agents know when things are priced correctly but we do not what what a seller may take in the end. The average selling price remains 3-4% off the final asking price as an average. This tends to remain constant on all prices of properties.
The key here is the final asking price. An example is if a unit is priced at 269k and is worth in the 240’s it may not get the offer needed to sell until the number drops to 249k. This will be closer to the real value at that time. Its a moving target that does change with interest rates, people expectations, seasons, strength of the rental market and the macro economic outlook. Some of these factors can change weekly.
A buyer in the end see several properties before making a decision and he ranks within price ranges and will then chose the best unit for themselves. They are able to see past sales history, review trends, looking at tax records, see what the seller paid for the property before making a decision. They look at the pluses and minsus before making that big decision. The property will end up getting appraised for a number. That number will not really tell you if you got a great deal. The resale value will tell you that and that changes with time.
Getting 40k off a condo that is worth 200k when they are asking 250k is not a great deal. It may make the buyer think like he is a great negotiatorbut that is not the best deal. Many buyers figure it out and some still do not figure it out. Not all Realtors know the answers either. That is why it pays to get the best that knows the info that you need and can help you put the numbers together. Emotion is hard to over come but its hard to change the numbers once you have all the facts about local market in real estate. It pays to listen…………It pays to look up the number……..Next time we will talk about how to get at that number……
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