The New Orleans Condo market has had the best run in 2012 this year since 2007. Things that are priced correctly are selling fairly well. The demand is there for most condos. The selection is much smaller than I can ever remember it. The top of the market was in 2007 and we are getting back to those numbers except where some buyers overpaid.
Sellers must be thinking that since the inventory is low that they are price above the market and attract an offer. This is rarely the case these days as buyers know the numbers and their agents do as well after having a rather flat market since 2010.
They look at the past sales and must be discarding most of them. They are more likely picking the one that makes there case while disregarding the others. The other thing that some sellers are doing is looking at the things that have not sold yet and justifying their price off of those competitors. Its like ” Fools Gold” as the appraisers are not interested in things that have not sold. They base their appraisals on the past sales only.
The sellers that over priced miss the pool of buyers that are ready to buy. They look and know the prices. The condo becomes stale at some point as the sellers then know that the price was too high in the beginning or that they needed to improve the unit to make it more attractive. There are those lingering on the market as well. The “Best Buyers are the First Ones”
Buyers will eventually purchase those at a bigger discount because the unit has gone stale. This is just normal when a seller lists too high. The Process repeats year after year. I am guilty of pricing some things on the high side thinking I will get the owner to come down to reality. If they are not looking at the numbers then the property will sit for much longer and the seller will end up with less. They will also have more expenses as nothing good happens to an empty unit. The bills keep coming.
Not all condos are equal so there is always going to be a segment that is slow. This year it is the condos that have the 1970’s feel of an apartment complex. I think one of the large reasons is that second home buyers want that “New Orleans Feel” and they are a large segment of the market.
I have sold a lot this year the first week the condo has been on the market as it was priced right and I was able to review the prices with my clients before we started looking. Many will do it on their own as there is a lot of info on line. Experienced agents now dominate the market as all the “Would Be Agents” have dropped out over the last several years. Tough times make you better….