When you wonder where the next hot area for condos you have to look at what is currently hot and what that area has to offer. Can that experience be duplicated elsewhere ? How is the housing market doing in that area ? How close is that area to where you would like to be but cannot afford to live there.
The condo market is an alternative to a house for many. The condos in New Orleans are becoming a second home to many. Condos are a way to avoid paying rents that are very high at the moment and have been that way for a couple of years. You can live in an area that has very expensive homes in a condo. So if the housing market is strong then the condos in the area will tend to do well. If people are just discovering the area then it only takes 10-15 clients to make a trend.
Two of the areas that I see that happening is the Lower Garden District and the Garden District. The housing market is doing well in these areas. Its close to or next door to the New Orleans Warehouse District which is the hottest condo market right now. Transportation and drive times are small. The prices are cheaper. The demand for historic condo conversions is still alive.
People are discovering the Magazine Street corridor and all that it has to offer. Shops of all kinds. Lots of restaurants and coffee shops and its all walkable. Its close to downtown and close to LSU and Tullane University hospitals. Close to the new VA hospital as well. Its close enough for students and law students going to Tulane and Loyola Universities. Its close to the new VA Hospital, LSU Med school and Tulane Med school. The furture demand is going to be there.
I have experienced the increase sales in the area in 2011 as I have sold 5-6 units in the area. I have also seen the properties come and go at a rapid pace when the price was right. A number of them went under contract in a matter of days. This is even when financing has been hard.
The other area that will begin to show more promise is the Lakeview and Lakefront areas as the market has been doing well there as well. Have to save that for a second blog.