The prices are on an upward trend and are getting back to the levels of 2007 when business was last booming. The big difference is that there is just not a lot of things for sale. There are currently 25 active listings in the Warehouse District of New Orleans. Out of the 25 listings there are 7 listings at 1201 Canal which I really do not consider the Warehouse District.The prices range from 169k to over a million. So choices are limited in all categories. There are 20 condos under contract.
I had several listings last month and they all sold within a week of getting people in the units. If a seller prices them correctly they can get a sale in short order. You still have to have what people want. There a a large demand for 2/2 units that are selling for up to 400k.
Several of the reasons for the demand is that few new places have come on the market since 2008. The second home market is doing extremely well and those buyers are ready to buy when things do come on the market. The odd thing about most of my second home buyers is that they live rather close by in places like Baton Rouge, Lafayette, Kenner, Mandeville and other local towns and cities. This was not the case three years ago.
Many of the second home buyers pay cash or put down large amounts towards the purchase. People still ask about foreclosures but they are few and far between. Those that will pop up have been in the process for years. Then you add to the buyers those that are renting and want to buy with the low rates you have some increased demand.
The Warehouse District is also a favorite place for medical students, residents and law students. Many are not selling when they finish but decide to rent or use their condo as a second home. The demand will increase in that area with the completion of the new VA and LSU hospitals which are under construction.
I have pictured these buildings which are not yet condos. The area of expansion is going to be the areas in the CBD and towards the Super Dome. The construction or conversion of rental units have greatly increased in this area. Once that happens its will be like a ball rolling down a steep hill. Blocks away from the French Quarter where you get larger more updated units for less money and you will have access to parking.
That is what I am predicting is going to happen. The areas just tend to spread out as prices and available space become available….I have had no problems with financing as long as people stay local and use lenders that we know will give you the best deals and get the job done. Out of State Lenders are stressful and much less successful. Add in the large out of state banks to that number. I will not mention names but all Realtors know them… Ask them who is most successful. I never mind saying….Stay away from XXXXXX Brand…