A New Year and a New Market in Real Estate. Since the concentration of this blog is about condos I will give you an overview of the market in Condos. The French Quarter, Warehouse District and Uptown are aall doing well. The market is Jefferson Parish is still not doing well. The rental market is very strong. The strong rental market is making people in Jefferson to take condos off the market and rent them. The Owners in Orleans can easily rent ot cover their cost and watch their values go up. This is one of the reasons I think there is little inventory on the market today.
The low interest rates have made for low notes. Tis will also make it harder to part with your condo to move to a higher note. The interest rates are trending up and the best this week was 4.5% for one of my clients. You can expect the rates to rise over the year. There are however more lenders locally competiting for your business for their own portfolios. You pay 1% for the money and make almost 5% wiith higher fees. No wonder they want your business.
The Second Home is still very strong with a lot of cash buyers and those willing to put down high percentages above the normal 20% downpayment. The one thing that is different this year is that many second home buyers expect to live here part of the year and make it a part time home. You see a lot of baby boomers in this category. New Is just a lot of fun and that is how they want to spend their time.
We are also seeing more second home buyers in the market that do not live that far away. Baton Rouge comes to my mine first. Its 70 miles up the road and makes it an easy weekend visit. They also tend to know more about New Orleans and where areas they want to be in. This is kind of a new trend but after selling 4-5 people from Baton Rouge lately I see the trend. You also have people from Kenner, Mandeville, and Slidell which are een closer places.