In 2014 the prices of condos in the Warehouse District of New Orleans continue to climb. Over the past 18 months we have seen increases of 20% with no signs of sales slowing down. You have to wonder what is driving the prices and demand. One reason is that few developments have been built or new conversions have come to market. The price range that is showing the most activity is from 200 k to 500 k. I have had 3 listings in the Warehouse District and each has sold near full price within a week of listing. All the deals were cash.
The largest reason for the increase is that this has become a demand area for second homes. A lot of these buyers are cash buyers. Many are from Louisiana and want a place to come to so they can walk to shops, eats, drinks, The French Quarter and take the St. Charles Streetcar line to other points and leave the car behind. Many of the buyers are empty nesters that have grown kids. They all like to come and share. Several years ago it was the two bedrooms that were in demand. Now it is whatever is on the market.
The only area where sales tend to slow is above the 600 k level where demand drops off somewhat. This price range is still in demand but the increases have not been as great as the lower priced properties. This price range has had competition of 427 Notre Dame which is brand new development that is almost sold out before it is complete. All the units in this building are high end units. I am sure if another complex was brought to market it would do just as well.
There has been plenty of new rental complexes come on line in the last several years. Many of those people have decided to buy and stay in the area but there is not much to purchase.
There also several game changing projects that have just been completed or in the process of creating even more demand. The new River Walk Outlet Mall renovation with a cost of 80 million, The Saenger Theather and the South Market Project costing 200 million. The New Orleans Arena Renovations and the granddaddy of all is the new VA and LSU Medical Center. These projects are game changers for the area. What will happen from a real estate perspective is the area will spread to adjacent neighborhoods.
This is one of the units that sold within the first week that it was listed. Just to give you an idea of what you get for your money. In this market you can price your properties right on the money and expect to get close to the numbers. This is happening over and over again.