September 10th, 2015 categories: Buyers Agent
Warehouse District Condo Trends
The Prices in the New Orleans Warehouse District Condo Market are up at least 20% over the last 24 months. The demand is up sharply and the supply is down. When this does happen you will find certain sellers over pricing their units. When they come down they sell quickly. In good or slow markets its always advised to price your condo correctly to sell.
One of the big reasons for the increase is that second homers are driving the market. Many of these buyers are cash buyers. They know what the want and will pay for it when it comes on the market. We are seeing fewer people buying to live in the condo full time as the prices are getting higher. Many working people are renting until they decide what they are going to do.
The really interesting factor in sales is that many of the second homers are from places like Baton Rouge, Lafayette, Houma and the North Shore. They enjoy coming to town for the football games, basketball games, Mardi Gras, Festivals, Harrah’s a chance to get away. The two bedroom units are in demand as they like to have friends and relatives come with them to visit.
We are still seeing parents buying second homes and letting their kids live in the condo while they are going to local colleges and Medical schools. As the prices have moved higher, many people are looking are areas close by as the prices are cheaper. The other areas are still close to town. Everyone likes an area that is walkable and near things they like to do. You can walk to the French Quarter which people still love to do.
You see new shops, eating establishments, bars opening in the Warehouse District as the number of rental units has exploded over the past three years. I think in the near future many of these renters will look to purchase as well.
Many owners who would once have sold their condos have decided to rent them out rather than sell. I see this trend peaking as prices rise and more and more rentals are added to the market. The Movie Business has been a big plus to rentals. It also has introduced more people to New Orleans and a number of those people turn into purchasers.