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New Orleans Warehouse District-Sales are Brisk and Inventory is Low

       The New Orleans Warehouse District condo market is doing very, very  well this Summer of 2012.  The inventory is low and all price ranges are getting showings and sales.  Several last week sold in a matter of days.  There is a demand and buyers are learning that when they see something they need to buy.  This is the case of condos that are priced correctly and have few negatives. 

     The second home market is still doing very well.  The part-time market is increasing.  By part-time this means that the buyers will note full time residents but living here part time on a seasonal basis.  We are beginning to see this buyer more and more.  The established buyer who is moving here from other parts of town and into town are also doing well when they can find the right place.

       The first time buyer is still somewhat weak due to financing and the fact that the under 200k market does not have much to offer and they sell quickly.  It is not that they cannot afford the note but the 10% down payment is the norm.  Young buyers starting out may not have the 10% and the money needed to close.  There is New Orleans Bond Money  available that few now about, you should check it out if you are a first time buyer.

Warehouse Nights 2012

     The rents in the area are at an all time high.  Some of the current renters are now becoming buyers as they become tired of paying the rent.   Have a new client who is paying $2100 per rent a month. That is over $25,000 per year and its gone.  In two years that is $50,000.  He has decided to stay here and look for a place to purchase as a better alternative.  With the area growing it could be a very smart move on his part. The equity decreases much more than people think at these rates.  The interest is tax deductible and there is a chance of capital gain in the New Orleans Market as the low point has been hit in 2011.

     The shortage is not having a lot of inventory.  One reason is that many of the former buyers I have had are renting out their condos since they have moved on to other jobs.  I have run into some medical residents who I sold several years ago and have decided to keep their condos as a second home.  They come back to New Orleans on a regular basis to enjoy the lifestyle…

Warehouse Streets, Lafayette Street in New Orleans

     The short sales and bank sales are gone in the market and have not been around since early 2011. There are a few in the pipeline but that pipeline takes forever. Few as they are… People are still waiting for these and I do not think they will be there.

        The Corporate rental market is tied to construction projects and the movie industry. Movies tend to take a break during the hot New Orleans Summers. Some owners are also not being very realistic about the pricing and at a certain point things will not rent at too high a price.

Warehouse Nights, NOLA

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