Archive for the 'Market Trends' Category
Shopping for the negatives and positives of each New Orleans Condo….
October 28th, 2011 categories: Buyers Agent, Market Trends
In ans a market where almost all clients are very picky they will view each condo they see with positives and negatives. Everyone does seem to want it all and people become less picky when the units are bargains. I tend to think that way as well as I am thinking about resale value as I go through the listings.
Some negatives can be made into positives such as paint, older appliances, light fixtures and such. Some negatives such as floor plans, no parking, odd views, high condo fees cannot be overcome. Sellers can make their unit have more positives as well. Overpricing is a huge negative and agents will just pass them buy as they do not compete as well.
I had a client call me today to see condos in the Warehouse District between 180k and 300k. I could only find four that I thought they would like to see. One they had already seen. One is not available till next week. Two that would have been a winner was sold this past week. Both were “winners” in my book and far as positives and price. That leaves two units to see. In the Warehouse District this is becoming the norm.
Business is not booming but there is not a lot of the nicer things for sale. It is a supply issue when all you can show are two or three condos. The buyers can expand their search to other areas or wait for the right one. More than one buyer will be doing this so you begin to have a buildup up in demand of the nice condos that are priced correctly and have a bunch of positives.
There have been several foreclosures this year and all three were sold in a couple of days with mutiple bids. Fannie Mae generally lists the condos 20% below market value and you take it as it is. There were several bids on each. They take the highest bid from someone who is going to live there for the first 15 days. Then investors get a shot. Very few have gotten any shots in 2011 Warehouse District.
There are other areas that are going to be like this but they are not quite there as yet. Happy Halloween ……Eric
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October Market Update for New Orleans Condos….
October 8th, 2011 categories: Market Trends, Second Homes
The New Orleans condo market is going to be different in the various areas of the New Orleans Metro area. The prices of condos and demand are going to follow the sale of homes. The hot segment of the market is in New Orleans. Jefferson remains very cool as demand is very slow even with some great deals to be had. St. Tammany is slow as well. As an agent you tend to work more in the areas of demand.
Rates are at 4% as we enter October. This is a new low for rates in my lifetime. People need to check to see if refinancing is for them. The 15 year rate is like 3.25 and you can save tens of thousands of dollars if you can take a slightly higher note. Getting rid of PMI with 20% equity is a big saver as well. If you can do both its a giant windfall.
Let talk about New Orleans now since it is the best market for condos as it is for the home market in all price ranges. The supply is down in all categories. The supply in the French Quarter is way down from a year ago. The same can be said for the Warehouse District. You can easy get down to the best 2-3 units in all price ranges. Clients are waiting for units to come on the market. The Garden District and Uptown is seeing the better units very quickly.
People are becoming more flexible as to where they would purchase. We even see some uptick in the Lakefront condos where there are a couple of exceptional buys still there. This market has been quiet for a couple of years. It may be waking up….
The supply is down in all these areas. Rents are up in all areas. If you are a buyer its best to get started now so you can get a feel of the market. I can set you up to receive all the new listings as they come on the market. You can see the reductions, sales and begin to see a trend in the condo market.
The second home market is becoming much stronger even with 20% down as a minimum. One change we notice is that many of the new second home buyers are making New Orleans their home for several months out of the year. The demand is there for the larger units but supply is small as condos in New Orleans have generally been smaller in all price ranges.
Once again timing is key. Buy when all the factors are on your side. Low rates and decent prices. A low supply may be in your favor as the market may have bottomed last year. The holiday season is a great time as some buyers are waiting for next year but the deals may be availiable now.
There are very few bank repos in the market but some sellers just need to sell for a variety of reasons. You can count the bank repos for New Orleans Condos on two hands. I have seen many and they sell quickly mainly to owner occupied buyers. There will be more. I have not heard of a short sale in months. People are avoiding these as rents are too good and a smart seller in trouble can make it work.
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This weeks condo trends in New Orleans ! Business picking up…
August 19th, 2011 categories: Condo Knowledge, Market Trends
1. Interest rates hit the 4% range this week for a 30 year fixed rate. Lowest rate in years. This means it would be a great time to refinance and save big time. The prices on comps in some areas are great for an appraisal and not so good in others. But this is the time of year that the premium condos have sold in the last 6 months and these should be good numbers. Getting 20% equity can also get ride of the PMI, or private mortgage insurance.
2. Rental Market is very strong Many people cannot buy for one reason or another. These future buyers maybe on the fence about buying. They are paying strong rents for the hot areas where people want to live. The mortgage lending institutions which is the Federal Government have made it very hard to new projects started and financed. Even if the demand is in New Orleans, it is the one size fits all approach for Fannie, HUD and Freddie.
3. Furnished and Corporate rentals are great. The movie business has a lot to do with this segment of the rental business. Add in the various construction projects and this is where most of the demand is coming from. It has been strong for the last two years and continues into the Summer of 2011. You can be getting close to $2,000 or more for a one bedroom in the Warehouse District of New Orleans
4. The demand for the one bedroom condo is back. For the longest time people have been wanting two bedrooms but the one bedroom demand has come back. The units need to be priced correctly and have to be updated to get the sale. Its always easy to spot the overpriced things in this market.
5. A shortage of large units in the 1500 sq. ft and up below $500,000 These are empty Nester’s looking for a home and they need more room, parking and something updated as they want to be full time residents. Walking and not using a car to go everywhere is a big plus. This is happening in the Warehouse District and the Uptown neighborhoods. There has not been a new supply put on the market in several years in terms of a new development of any scale. The New Orleans Condo Market is ripe for this.
6. Foreclosures and Short Sales are in short supply Not many in the last 6 months in the areas where I work. I know there are some foreclosures in the pipeline and they tend to go fast. The prices are generally 20% below the market value and people quickly pick up on the good prices. Owner occupied gets first crack in may cases. This cannot be an investent or second home when the units go on sale in the first 15 days. You have to be ready but the deals are there. Getting a pre-approved is a must….and you need Patience….. Get on my list now and get ready….
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The Cotton Mill Condos in the New Orleans Warehouse District, 2/2 under 240k, there are 3 for sale…
April 17th, 2011 categories: Market Trends, Warehouse District
The Cotton Mills Condos in the Warehouse District is one of the few places where you can find a two bedroom and two bath condo for under the 240k level. Buyers and residents like the complex because it has easy access to parking, the real New Orleans Warehouse feel with high ceilings, wood floors and large windows. Add in security, a giant courtyard of 25,000 sq. ft., on site management, and a large gym fully equipped. The security is on duty day and night once you enter the secure entrance at 920 Poeyfarre.
A great location for easy access the the interstate, French Quarter, Convention Center and the Street car line that runs down St. Charles. Its a block from the World War II Museum. Its a very short drive to the Medical schools of Tulane and LSU. Its a short walk for everyone working in the Central Business District of New Orleans.
There are actually 3 two bedroom condos for sale currently in the building. The condo fees here cover all insurance, upkeep, basic cable, water, sewerge, and garbage, security and even hot water. The condos are always easy to rent because of the amenties that the association has to offer.
All the two bedrooms that are for sale in this range are what I call “stack-able” meaning one bedroom is stacked on the other. This is doable on the 3rd and 4 th floors as you have at least 18 foot ceilings and twelve foot windows. The two bedrooms that are on one level are going to be higher in price than the stack-ables. These units are great if you want to have a roommate as you have great separation of space.
The Cotton Mill Condos can be financed using an FHA loan which means 3.5% down but you have to live in the unit. Rates today are right under the 5% level.
I have sold over 30 condos in the building so know that buyers either really like the complex or do not. Its either your cup of tea or not.
Here is a brief description of the three condos currently for sale under the 240k level.
Condo #326 is a renovated unit that faces the courtyard. The unit has been updated and looks great. The current owner has made several positive modifications to give him a small office upstairs off the bedroom and more room in the living area by moving the bedroom wall. $239,500
Condo #336 is also renovated and faces the courtyard as well. The kitchen is larger than most and both bedrooms are larger as well. The condo was used as a second home recently so it has been used very much at all and is a one owner condo. It is my listing. $238,5000.
Condo #423is a unit that faces the interstate. It has not been completely renovated and is on the top floor of the Cotton Mills. The condo is 1002 sq. ft of living making it the largest of the three. The price is $235,000.
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Condo Market beggining to look up, Could the bottom be here ?
January 22nd, 2011 categories: Condo Knowledge, Market Trends
In some areas of the New Orleans Condo market there are signs that the maket is begging to pick up. It is not all over but certain areas are seeing more buyers and less listings. I see this happening in the French Quarter, Warehouse District, Garden District and Uptown. The one bedroom condos are being shown on a regular basis after a long lull. Once you take out the not so nice units, those just overpriced for what you get, you can easily get to 4-5 condos that meet your criteria.
There is a strong relationship to the housing market and this continues to be the case. The Garden District and Uptown housing market is much better and this brings the condo market along. Condos still tend to much less expensive in these areas and are a vaible alternative to renting. The rental market has been very good. There are few foreclosures to compete with the sellers who own.
When you get to Metairie, Kenner, Lakeview, River Ridge, Old Jefferson and other areas where the condo sales are weaker, the housing sales are beginning to pick up. Its still not there yet but it could be around the corner. One good thing for the market is that there are fewer foreclosures and short sales than one would imagine.
We are seeing more second home buyers which will push French Quarter and Warehouse condos into sales. Buyers will not take just anything but can find some very fair deals in all areas of the market. Financing can be tricky on some of the complexes but an experienced local lender is the way to go. I can point you in the right direction. Stay local and you will be much, much happier. Rates are still below 5% for second home buyers with 20% down and if its your primary residence with 10% down.
Coming out of the Winter season can be good for a buyer if a seller has been sitting there and not getting the sale. It may have been price, condition or just lack of buyers. It happens in all price ranges. The rents have been so good that people can wait out the market until they feel better about selling. One thing that is missing is older people who used to be a staple for the condo market. Most have been missing for the last two years. Hard to figure that one.
You really won’t be able to tell if the bottom is here until after its gone. With that is mind now is a good time to start your search. We can sit down are review your needs and start you on your search for that condo. Rates will not likely stay this low all year.
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New Orleans Ranks well ! City is becoming much younger !
October 17th, 2010 categories: Art , Music , Parks, Market Trends
The city known as the “Big Easy” also came out tops for people watching, singles scene and the metropolis with the best bars and concerts and bands.
“In the nightlife category, New Orleans beat Las Vegas. Last year New Orleans swept all of the night-life categories and New Orleans did this year,” Kelso added.
Miami topped the charts for the most attractive people, followed by San Diego and Charleston but southern charm seemed to come into play with Nashville, New Orleans and Charleston having the friendliest folks.
New York was the U.S. city with the most stylish residents with Miami and San Francisco and Los Angeles also coming up with high marks.
But when it comes to most intelligent Minneapolis/St. Paul took the crown, followed by Austin and Boston. The twin cities also scored top marks as the cleanest city.
The results were based on an online survey of more than 60,000 people who rated 30 U.S. cities in various categories. Five new cities, Providence, Kansas City, Cleveland, Houston and St Louis, were added to the survey this year.
Washington D.C. was the top choice for best museums, galleries and historical sites, with New York, Chicago, Philadelphia and Boston also in the top five.
“In regards to culture, Washington D.C. and New York really tied in that category. New York got the No. 1 ranking for classical music and theatres, and Washington D.C. did for historical sites and monuments and museums and galleries. It was a nice East Coast tie,” Kelso said.
For more sedate family fun, Orlando, Florida was the top choice with Washington D.C. coming in second, and San Diego third. If money is a consideration, Cleveland scaled the chart for best affordable getaway.
New York may have bowed to New Orleans in the nightlife ranking but it was still scored top marks in a category considered important by many — shopping.
Katrina and lately the Saints have given us exposure you could never pay for in a million years. New Orleans just has to take advantage of the good news.
(Reuters Life!) – “Looking for romance? Head to Honolulu. But if you are single, like live music, boutique hotels and want a wild weekend, New Orleans is the city to visit.
In its latest survey of America’s favorite cities Travel and Leisure magazine asked readers to pick the best places for everything from the most attractive, intelligent, stylish and the friendliest people to where to find the best museums, restaurants, bars, museums and affordable hotels.
“The big news this year is that New Orleans received the most number one rankings over New York,” said Travel and Leisure Assistant Editor Stirling Kelso.
“It is a popular weekend destination. You can go to New Orleans and feel like you have left the country,” she added. Read the rest of this entry »
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Low Interest rates of 4.25% begin to bring more buyers into the market?
August 8th, 2010 categories: Market Trends
The interest rates are the lowest they have been since the 1950’s having hit 4.25% in the last couple of weeks. This is causing people who have been sitting on the sidelines to again think about buying as a primary residence or second home. Prices have actually been fairly steady with a slight downtrend in the last year for the better properties. More if the properties needed some work.
This means if you borrow 100k your principle and interest are $491.94 per month. You would add taxes and condo fees to this and you will get an idea of the total note. Do not forget the value of the tax deduction for interest. Do not forget in year one you actually reduce the principle by $1686 and this figures grows each month.
Second homes get this low rate as long as you have only one second home. There are no third homes as it then becomes investment property at a much higher rate. Second homes will require 20% down in all most all cases. You avoid PMI with 20% down and this is a huge savings.
Buying a condo as primary residence would mean putting 10% down. You can ask the seller to pay the majority of the closing cost if you want to preserve cash. This is more and more common in all transactions.
Two bedroom units have been the strength of the market year to date. I do see the one bedrooms making a comeback with the low rates in the very near future. These are the units that are currently some of the best buys. These are going to be your first time buyers and second home people that do not need a lot of room. Many sellers have had their units on the market all Summer and are ready to make a deal as the seasons change.
Condos that need updating are still out of favor as prices have not been adjusted for the things that need to be done. The majority of the sales have been in the premium units. Meaning you buy and almost nothing needs to be done except you own taste.
Sellers may be better to make their condos into premium units rather than reducing the price. This is working for me. Get all the things done before putting it on the market. Today’s market is a beauty contest with only best looking units winning the sales. The buyers today are very stern judges.
I have seen some of the nicer things having been sold in the last couple of weeks. They were their one day and gone the next. There are several good buys that I have seen and bet those will begin to vanish as well. The good news about the oil spill being capped is good news for everybody and the real estate market. Psychology of markets works like a clock as fewer people buy at the bottom but now may be the bottom.
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Staging Advice pays off big time ! Getting your New Orleans Condo in top shape is very important!
July 31st, 2010 categories: Market Trends, Selling your Condo, Warehouse District
I just had a young couple, Lauren and Taylor that called me to list their condo in the New Orleans Warehouse District at the Cotton Mill Condos. They had already called a stager-decorater to come give them advice on how to make the condo look better in the sales process. I got there before they started to unclutter and repaint a portion of the condo. I reviewed the plans and everything she said made a lot of sense. We added a few things then the sellers were ready to start their work. They wasted little time as you want the resign to be finished before the first buyer comes.
The owner of Bella Home Staging is Suzanne Gindy. Her expertice was in telling the sellers on the things they could do to make their condo sparkle in the buyer’s eyes. She charged for her time and advice. Her initial charge was only $100. The sellers did all the things she was asking for. Many will need a follow up visit but Lauren and Taylor did not need one. The basics were
- To rent a space to put the clutter. This makes the unit look larger and the focus is on the unit rather than the things in the condo.
- Do some accent painting and touch up work to make the condo fresh.
- Move the furniture around to show the best configuration for this particular condo. Put the right amount of art work on the walls.
- Decorating ideas that just made the place look more livable.
The focus here was on the wood floors, large windows and high ceilings as these is why people like the Cotton Mills as a place to live. You want the buyer to say ” I want to live here and can see myself settling in very quickly”.
The best thing about the this approach is that it works and pays big dividends if you follow the plan. Once Lauren and Taylor finished the makeover and cleared the clutter we were ready for out first showing. The very first buyer that looked at the unit make an offer and it was accepted. Rather than taking less and staying on the market for a much longer they followed the plan and it worked to perfection. The condo sold and both the buyers and sellers were happy.
Today’s market is such that you want to be in the top three of your class so people will consider your condo. The positives have to outweigh the negatives in the eyes of the buyers. There are fewer buyers so you have to feature the positives of the condo so you will be the best in your class. Many buyers will not see past a junkie place or one that is not ready for sale. It just takes more work.
Suzanne Gindy knows more than I do about the staging business so why not look for advice from one of the best. She has a variety of programs but this initial step is well worth the money. I fully support any effort to make a condo more ready to sell in a much shorter time frame. My job is to get people in the unit through marketing the condo in the best possible light. Working on a premium unit makes the photos, flyer’s, videos, Internet ads all look so much better. People start off looking at pictures and staging gives you some great photos. Its is very much like a beauty contest so looking and feeling best is the way to go !
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New Orleans Condo Trends for June! Bits and pieces of knowledge!
June 8th, 2010 categories: Market Trends, Selling your Condo
The market is odd for a couple of reasons. The most suprising is that you never seem to have more than 4 or 5 good choices in New Orleans when you consider all your criteria. There are not a lot of new units coming on the market but not a lot selling either. Buyers are looking for the premium units where nothing has to be done. They of course have to be priced right as well.
Sellers have to Stage and Update ! I recently listed a condo at the Cotton Mill Condos where the owners hired a young lady to give them tips and ideas to get their unit ready for sale. Some was painting and getting rid of the clutter. They followed her directions to a great degree.
It was time and effort but it worked. It sold within the week and I know this is why it did. Both units in their final choices were down this way. I was even surprised at the effectiveness and I do this every day.
Sellers have to slot their unit to be competitive ! This means knowing what your competition is and what the final choices are going to be before you list. You need to be slotted to be one of the best in that class. A seasoned agent that works the market can show you where you need to be. Selling a place is all about timing. Take the steps to make you unit compete like the Cotton Mill couple. This save time and make you money in the end.
Tax credit rush is over but interest rates are at 4.625% this week ! That means the cost of money is as cheap as it has been for 30 yeas or more. Borrow a 100k and you principal and Intersest is around $520. The tax credit di create a flurry of activity and many who would have bought in May and June pushed up their buying to April. Once the flurry ended there will be a lull.
The weakness is still in the one bedroom units. The weakness is in condos that need to be updated. The premium units are getting all the action as things have reached that lull. The Louisiana Oil Spill has not helped but may mean if you are buying the sellers may just say yes to a lower offer than they would have taken in April.
The photo above is in the New Orleans Warehouse District where a lot of renovations are being done. I can easily count 8-10 complete renovations in the initial stages of work. This was not the case in the last three years so I know someone has confidence in the New Orleans market.
Maybe its the “gone factor” of no longer having Mayor Ray Nagin running the show into the ground week after week. Breath of Fresh Air Now!
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Warehouse District Market Update for the Spring of 2010.
May 4th, 2010 categories: Market Trends, Warehouse District
The Warehouse District condo market has showed increased sales activity over the last month or two. The strength of the market has been in the two bedroom and two bath condos. The price range that is showing the most activity is the 250k to 450k range.
We are seeing second home buyers, students buying for medical schools with a desire to have a roommate. We are seeing more people wanting to live in New Orleans on a part time basis and want the extra bedroom for guest. We are also seeing a couple of companies buying units to have for their clients.
The one bedroom units have been the slowest of the Warehouse condo market. There have been a couple of foreclosures that have been some great buys. We are seeing some locals looking to take advantage of the low rates and flat prices of the last 4-5 years. When certain segments have fallen out of favor, this is when you get your best buys.
There are currently120 condos for sale up to the 500k range. There are 40 condos that are under contract or have been sold since March 1, 2010. Not all are priced correctly or may not be the most desirable units. It is still easy to narrow the choices down to 5-6 that meet your criteria.
The things that are selling have been updated. Not many people that want to buy and then fix up at this point. Parking remains an important factor in a buyers decision process. I would not recommend buy a place without parking unless the price is great or no others in the complex have them. The amenities are also becoming more important than ever.
Real estate is seasonal so that is where we currently are. Interest rates are still around 5%. The down payments have increased making it harder for first time buyer to afford their first place. This could be one of the reasons for the lack luster sales of the one bedroom units.
The Cotton Mill Condos is getting closer to being on the FHA that will make it much easier to purchase. Thanks goes to Ross Miller of Miller Mortgage who has been the lead person helping this along. This is not an easy process but would greatly help sales of units below the 300k level. But the 3.5 % down with lower cost is a great incentive.
835 Julia has sold all but two on the one bedroom units that they had for sale. This is a new development that got hurt form the financial crisis of 2009. This is a great sign. There are a couple of new 2/2 penthouses that are for sale. These are good buys in the 400k range.
In the last couple of weeks we have seen more condos come on the market. This is a combination as a better selling environment and the seasonal aspect of the New Orleans Condo market. The premium units have the best change of selling unless a fixer upper have big decreases on cost. Many times the units needing work are just not discounted enough.
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