Archive for the 'Market Trends' Category
New Orelans Condo Foreclosures! Warehouse District Update!
April 11th, 2010 categories: Market Trends, Warehouse District
I often get asked about getting a good or great deal on a condo in the New Orleans Warehouse District. There just have not been bank foreclosures for sale. Since the beginning of 2009 I can only remember 5 that came on the market. They all happened to be very good deals. I sold 3 of them, but they stayed on the market for a while before getting scoopedup by a Sawy buyer. They were generally in great shape and needed very little done to them.
One was damaged by the owner but the bank put it back together so it looked nice by the time it hit the market. One was entered as a condo and it was a town home and proved to be a great deal. The photos were terrible and I almost missed the deal since the photos made the place look bad. Two of the unit only had exterior photos but were very nice inside. They both sold for about 25 k below fair market value.
The banks will continue to reduce the prices on a regular basis. The out of town banks give you the best deals as they have no feel for the New Orleans Market. They tend not to want to listen so it does not matter, its generally someone else’s money they are dealing with. Coming out of the slow season is a great time to catch these. They tend to go with real estate companies that do not normally work these areas. All these factors tend to work in the buyers favor. The knowledge of pricing and trends are on your side.
Short sales are a totally different story. I know of no successful sales first hand and many disappointed sellers, buyers and agents. I would avoid these in this market. It generally takes many months to make it to foreclosure after a short sale falls through. The information flow is terrible from these companies to the point of being just downright rude. My advice to buyers is to move on to better deals. Once foreclosed then the deals get even better.
One of the reasons there are few condo foreclosures, a Warehouse District Condo is easy to rent and the rental market has been getting tighter. Fewer people are buying but opting to rent for a time before jumping into the market.
Most people think there are many more foreclosures than there actually are. Most happen to be in pretty good shape. This is not Miami or Las Vegas and New Orleans Warehouse District did not get overbuilt in this area. Hurricane Katrina hit at about the time that the real estate bubble was really building before the skid.
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New Orleans Condo Trends! What is up right now! Spring of 2010!
March 22nd, 2010 categories: Market Trends
The new financing rules are making it harder to get financing until things adjust to the new market place. Many of the condos where people want to live are not on the FHA list as projects that they will finance in. This is now one of the more popular ways to finance. This effects the first time buyers the most.
The two bedroom units are doing better than the one bedroom units. This is because more people are buying condos as second homes in New Orleans. More people are living there full time as well. The new buyers are hurt because of the financing and large down payments.
Many mortgage companies are requiring buyers to have condo insurance for contents and the insides of the condo. This requirement is also new. Its always been a good idea since its about $500 per year for $30,000 of coverage. The outside damages are covered by the condo associations but not the insides.
We are beginning to see a few more foreclosures come on the market. They can often be good buys and if you have patience with the banks then you can really have some instant equity. They market these properties very poorly. The photos are often terrible and the info published is often unreliable. Thus if you know the real numbers and facts its really in your favor.
The demand for condo rentals is very good. This is the case with many apartments really pushing for new people. People tend to not want the apartment feel if they can avoid it. The demand for New Orleans corporate condo rentals is way up as there are several large films in the area
The interest rates are still very good! Hanging around the 5.25% range for a 30 year loan. You do need better credit scores for loan approval. The tax credit is still out there unit April 30,2010. Doubt if it will be extended.
Condo fees seem to be stable as owners do not want to see the fees go up. The insurance rates have come down from the peak in 2006 after Katrina. This is a major factor in condo fees.
The surprising thing is that when you start to look at the inventory there are not a lot of good choices in each and every price range. Coming up with 3-4-5 nice properties is all that you see once you start weeding them out for one reason or another. You would think this would not be the case. There is less this year than last ! people will soon be moving so I expect to see some more choices in the next couple of weeks.
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Real Estate is Seasonal ! The market has picked up big time in the New Orleans Condo Market!
February 19th, 2010 categories: Condo Knowledge, Market Trends
Now the Mardi Gras parades are over. The Superbowl Saints are a great recent memory. The New Orleans Mayor’s election is over. Buyers are turning their attention to purchasing. The buyers know the rates are great, the prices are lower and the tax credit expires on April 30, 2010. People are thinking Spring and the days are getting warmer and longer.
New Orleans has gotten millions of dollars of free press since the Saints were going to the Superbowl and coming home a winner. All the press was positive and people are feeling good about the area and the future prospects are looking up. Hundreds of millions of dollars for hospitals and schools will be forth coming. This is like a renewed interest in New Orleans.
This is also the time of year that you will begin to see the better listings as people have to move for many reasons. This is when you generally see the most of the premium listing where nothing has to be done but your decorating touch.
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New Orleans Second Home Market ! The Twos are in and the Ones are not!
January 1st, 2010 categories: Market Trends, Second Homes
The New Orleans second home market for condos in alive and well. Its not doing as well for the one bedroom segment. The tw0 bedroom condos are more more in demand. This makes sense on a couple of fronts. Many buyers want the two bedrooms for family and guest to use. Buyers in the market today for second homes are skewed to the middle range condos from 200-4ook. The low end market is just not there.
Many of the sales are cash or the buyers have 20% to put down. The interest rates on second homes is still around 5%. There has never been a lot of investors in the Condo Market in New Orleans and now that is a good thing as prices have drifted lower but have not cratered. The prices have been level since 2005.
Most of the sales I see are in the French Quarter, Warehouse District, Garden District and Uptown New Orleans. The buyers are much more willing to venture to all the areas where several years ago sales were concentrated in the French Quarter.
The fact that the one bedroom unit sales have been slow means there are currently some good deals in this segment as well. The fact that first time condo buyers are not there in numbers like a year ago makes an even bigger impact on the market. There are some nice deals to be had with that said. The condos that need cosmetic work or are outdated are not at the top of any one’s list. These could be good buys if you are willing to do some work and the price is right.
The rental market has been good as fewer first timers have been buying but renting. You can as a second home buyer rent your unit out from time if you desire. That is a fickle market but it is here now.
Few New Developments are on the drawing board due to the financial mess we are in so new competition will be few for your condos. Maybe a second home is in your future. We may even have a post Nagin housing uptick when the Mayor leaves the 5 th of May 2010. Just over 4 months away!
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Buyers are on Vacation but looking and thinking of next Year ! It pays to be ready!
December 22nd, 2009 categories: Grants and Incentives, Market Trends
The buyers are still in the condo market, some segments are of course better than others. What we are now seeing is less new units coming on the market. The sellers are waiting for next year until the Saints win the Super Bowl or until their unit is ready to sell. Real Estate is seasonal. Buyers are busy looking on line to see what there choices are. Many are looking but are still in the decision process.
The interest rates are still extremely low. They will not be this low in a year or two. Borrowing 100k today will cost you only $538 for principal and interest. This is great incentive to purchase. Rates are at 5%.
Prices are a little lower but not in a fall like some cities. Prices have been fairly steady but there are some wonderful deals to be had. As a buyer you have less competition now and that means saving about $5000 on an offer. You will not get this discount in April or May.
$8000 and $6500 tax credit is waiting for you as well. I think the economy and overall sales will improve and this will surely go away. Its a gift for you now.
Second Home Buyers are beginning to return to the New Orleans Market. New Orleans has been receiving some great publicity over the past year. With Mayor Nagin leaving on May 5, 2009, we may have a mini boom or at least we will feel in more reliable hands.
It does pay for buyers and sellers to be ready. The buyers who study and know the market trends have a better chance to buy and sell high. It always has a lot to do with market timing. Make this your advantage !!
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New Orleans Warehouse District Condos, Strength of the market is in the 2 bedroom/2 bath !
December 12th, 2009 categories: Market Trends, Warehouse District
The strength of the New Orleans Warehouse District Condo Market is currently in the 2/2 condos selling between 250k and 500k. On the surface the supply looks great but on a closer look you have fewer and fewer choices. There are 40 condos currently for sale in this category. There are 10 recent sales of units that have sold or now under contract.
There are 13 units for sale at 1201 Canal Street in the old Krauss building although technically in the Warehouse it is much more a French Quarter Place. There are 8 units for sale at the Rotunda at 330 Julia Street. Take these away and you are left with 9 choices. This is not a lot as potential buyers are looking certain criteria that these 9 may not have.
There are no new condos or conversions currently on the drawing board so the supply will not increase anytime soon. In January you should begin to see new listing as well as new buyers coming into the market.
The one bedroom units are not in high demand which is totally uncharacteristic for this segment of the Warehouse Condo Market. I have several premium one bedroom units that are not being shown much in the last 60 days. I have a two bedroom listed that has gotten shown 5 times last week. Very Strange indeed!
The only reason I can tell you is that the buyers are young couples looking for a place and they need two bedrooms. Other buyers looking for a second home and they want room for guests. The first time buyers are just beginning to think about purchasing. This is most likely due to the economy in general or the tightening of lenders as to who they will lend to. Then we could be in a seasonal lull.
Regardless of the reasons sellers have to have their units priced correctly or purchasers will look only. As a buyers agent it is easy to see which units are overpriced. The appraisers are even tighter so agents do not want to waste time with things that cannot close.
As a purchaser the best way to approach this market is to view what is availiable now and then see the new listings as they come on. This will give you an idea of what you are looking for when the time comes to purchase.
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Cotton Mills Condos in the New Orleans Warehouse District, A Sales Update!
November 28th, 2009 categories: Market Trends, New Orleans Condo Reviews
The Cotton Mills Condos located at 920 Poeyfarre Street is one of the most popular and largest of the Warehouse District Condos. Its about a block from the new addition to the World War II Museum. It has the most amenities for the price that you can find in the New Orleans Warehouse District. Its easy to find a one bedroom for under 200k. Two bedrooms should be under 250k for the smaller ones.
The positive points to the Cotton Mills Condos are the high ceilings, exposed beams, exposed brick exterior walls, extra large windows and that true warehouse feel. It features a 25,000 sq. ft. courtyard, swimming pool, fully equipped exercise room, live security, and low condo fees. The condos have a site manager and maintenance staff which is something all condos do not have.
The complex is one of the largest at 269 units but it spread over the entire block. Some of the units have not been updated since going condos in 2005. Many however have been updated with many personnel touches since that time. The units do not come with parking but parking is available on the street or in the secure lot across the street. The immediate area has a lot of new construction and additions in the neighborhood over the past two years.
The odd thing is that sales have been very very slow in the complex over the past 3 months. Currently that are 15 units plus 3 penthouses for sale with no condos under contract. This is highly unusual since going condos. I have sold 20 plus condo here so I know it quite well.
Breaking the units down there is only one 2/2 regular condo for sale at 250k which is a fair asking price. There are 3-4 nice units that are priced very well and are nice units. What is not selling is the 5 studios or studio conversions. There is one bank foreclosure which is a screaming buy at 153k.
If you are looking for a second home this can be a great complex with the amenities and low condo fees. The condos are easy to rent if that is the route you decide to go. The condos have no problem getting financing. Buyers should look at the Cotton Mills as I am sure the sales will pick up next year. Buyers can get the $8000 tax credit and low interest rates of around 5%. It ends up being cheaper than rent at the Cotton Mills.
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Seasonal Adjustments! Less premium Condo Listings Availiable! Is this a trend that is normal?
November 19th, 2009 categories: Condo Listings, Market Trends
This is a slow time of year for condo sales in general. There are a lack of buyers, but at the same time there are less premium listings coming on the market in the various categories. Just a couple of ideas as to why this may be?
1. Sellers know its a slow market. If sellers do not have to sell they are waiting for the market to improve. These are the people who do not have to sell but would like to sell. Its takes them a while to get caught up with the market once it turns.
2. The Holidays are approaching. Sellers would rather wait until its more convenient for them to sell. They may have some things to do before putting the condo on the market.
3. Many have given up! The rental market has picked up dramatically and some have decided to rent until the market improves. I suggested this to one of my sellers as I was approached by a person to rent for $2500 per month. I took it off the market. $30,000 for a years rental was too good to pass up.
4. People are not moving as much! Companies think twice about moving a person in slow times as it can be very expensive for them to make a move. Many companies are just not transferring people. They are holding off till better times in all areas of the country.
5. The market has always been somewhat seasonal ! Now it is much more noticable when you go to make appointments. There are not that many premium units to show. There are always the places that few want. There are more that are harder to finance in today’s market.
On the other hand people do look over the holiday times as that when they have the most time. The condos that everyone wants are still selling and many buyers do not get to see them because they do sell.
If your agent does work a particular area often he or she will know people that are willing to sell but have decided not to list at this time. Some of these could be the best buys if you can find them.
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New Orleans Condos-The Studio condos, are they good buys?
May 24th, 2009 categories: Market Trends
Studio condos are generally condos that are small and have no separate bedroom. They are too small in most cases to have room for a bedroom. In the current market most studios are not good buys. They sit on the market for long periods of time which tells me they are less desirable. Its not until the prices becomes very very good that they will sell. There are always one bedroom units in the same price range so the studios tend to sit and sit.
There are exceptions to my thoughts but those units better have some great features to make it a salable product. The French Quarter has the most studios followed by the Warehouse District and Uptown. We as as agents get to see them a lot as they are slow to sell. Many agents will not really say they are studios so as to get viewers. Price seems to be the thing that works best.
There are however expections to the rule where the price, locations, historical nature of the condo, views, and upgrades make it a good value. For someone starting out it sure beats paying rent. For someone who wants a small space for the weekend it makes a lot of sense.
I saw a couple of exceptions this week and will use the couple for sale at the Commodore Condos located at 3300 St. Charles Ave as an example. Its right next door to the new Barnes and Noble Bookstore. It happens to be in a great are to walk down St. Charles Ave and to the New Orleans Garden District.
The units have parking in the rear of the complex. The units have been updated, the complex is well maintained, and they are very nice for a studio. One of the units has a St. Charles Ave. View with plenty of windows which makes it look and feel much larger than it actually is. They are both priced below 15ok.
If you do find a studio it had better have a great location, a nice view and all the other things that would make it an attractive purchase. Studios could make a great second home if you do not need the room and a bedroom. Unlike postage stamps they do not increase in price evey 5-6 months so you have to be very careful in the purchase of a studio condo.
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Uptown New Orleans Condo Market, Condos in the 150’s and less!
May 21st, 2009 categories: Market Trends, Uptown NOLA
I recently had a chance to visit a good number of condos in this price range. I was surprised to see some very nice thing that have not been on the market in previous years. The units are small. Several had parking and were in nice Uptown New Orleans neighborhoods. Some were historic in nature with most being apartment conversions. Several were updated and had all the bells and whistles.
The units would make excellent homes for students, second homes and people just beginning and need a starter place. It beats paying rent and at these low interest rates its a great advantage to buy and build up some equity. There is even one in the building pictured above but its a rear unit.
I was impressed with several of the condos that I saw. I ran a market Snap Shot so you can get an idea of what is out there. This is a great tool that you can use in a search as it gives you the sold data for the past three months plus the actives. I am able to do an advanced search which really narrows it down but in the beginning the broad overview is a great way to start.
Market Snapshot of Uptown Condos 130-160
Hello Market Snapshot User,
View the Market Snapshot here. Your report is personalized: it charts market activity– current up-to-the-minute –with homes in your area, including such data as sold homes, properties for sale, inventory counts and even days-on-market.
There are many ‘intangibles’ behind this data, such as whether homes were fixed up or not, special amenities and the like. I have the local market expertise to help you interpret this information fully.
Please contact me with your questions and comments.
Eric Bouler
Prudential Gardner
Office: 504-212-0072
[email protected]
I have not seen the number of condos in this price range in the last couple of years but was pleasantly awakened that there are some very nice places in small packages. The nice ones will all sell in the near future.
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