New Orleans Warehouse District Condo Market Lacks Inventory as We Enter Feb. 2014, Why is the Question?
The New Orleans Warehouse District has few condos for sale. It is really strange that there are only 12 active listing in the area. There are 7 units below 400k for sale and 5 condos above the 400k range. Out of the 12 condos for sale, I know at least half of them are just asking too much. Prices were up an easy 10% in 2013 but some are easily 20% overpriced.
In the last 5 years the majority of my sales came form condo sales in the Warehouse District. Now we have to work other areas that offer more properties at more reasonable prices.
Why are there fewer listing? I am guessing with interest rates below 4% where a lot of recent sales were bought at and a great rental market, many owers can rent at a profit. Many think pprices are still going to go up. That may or not be the case. Another reason is that no new units built in the last 5-6 years. The 425 Notre Dame is being built right now and most of those are over 600k.
There are plenty of new rental conversions. There is historic tax credits availaible to developers for rentals that mature in 5 years and its worth millions to them. They will not convert early if the rents remain high and they can cash in on the Federal and State Historic Tax Credits.
There is the extra demand for second homes in the area. This also puts upward pressure on prices which was not as big several years ago. Many of the second homers are Baby Boomers and people who have business in New Orleans on a regular basis.
Once clients see that the supply is very limited, many will look in other areas where the prices are better and there is a lot to do. The Lower Garden District is getting much of the over flow as are condos on St. Charles Ave. Many however just want the Warehouse District so there is always a demand for places that are priced right. You See it, You Like it, You had better act quickly….