Warehouse District Condos, Market Update for December 2008. Buyers Market?

Lets get a feel of the Warehouse District Condo market before getting into the numbers. It is definitely a Buyers Market but the supply is not overwhelming. Many sellers are still asking too much for what they are selling their condos for. The prices are too high in many cases and the units are not appealing. The upper end of the market is the slowest and oddly enough the mid range market seems to be doing OK. This generally happens this time of year but do not get the feel that many buyers are looking in this range.

The interest rates are extremely good so expect some pickup starting at the bottom end of the market and working its way up as we go through the holidays. The MLS shows that there are 161 units listed for sale as of today. You however are looking at 11 pre-sale units at the Tracage, 11 units at 835 Julia Street, 20 units at the Rotunda, and 11 units at 1201 Canal Street Condos. Over a third of the market is these new complexes.

There are 30 units over 500k which is always slow this time of year. There are 35 units under 200k. This segment of the Warehouse District Market is one that is always fairly active. The problem is that many of the units are unappealing for the prices being offered.

I will review the more popular Warehouse Condos associations that are normally attracting attention this time of year. They also comprise a major share of the listings below 350k.

The Cotton Mills Condos which is always a good choice for a condo has 17 units for sale. Out of the 17 units there are two nice buys at the prices being offered. Many of the rest are just overpriced and have too many negatives. The Cotton Mills remains popular since it offers plenty of amenities that people want with low condo fees. Last year at this time there were 5-6 very good buys.

Julia Place Condos located at 333 Julia Street has 5 units for sale. I currently have 2 units under contract to close before the end of the year. People have been choosing this mainly due to the Julia Street location, common areas and very reasonable condo fees. Most of the units that have exterior views tend to sell here if priced correctly.

The Federal Fibre Mills at 1107 S. Peters Street has 6 units for sale. Three of the units are priced to sell. One needs work but could be a good buy for someone willing to do some updating. The common areas are a big selling point and each unit has parking. One is a 2/2 corner with terrace and great views.

New Orleans Condo foreclosures? Just not very many condo foreclosures!
October 25th, 2008 Categories: Market Trends
I get asked if there is a lot of foreclosures in the New Orleans Real Estate market for condos. There are very few that I see and do not know of any in the areas where I am currently working. There are several reasons for this. There was very little speculation in this market. Most people buying were well funded and did not get involved with sub-prime or adjustable rates. It had more to do with the culture and not willing to gamble on the future increases in rates. Many condo buyers that I have had paid cash, up to 25% and a large number put a lot of cash down.
New Orleans was also a small market and missed a lot of the present issues with mortgages as lenders could not make the amount of money here as elase where. The new construction of condos just was not great as the market was viewed as much slower than the now bubble markets. Few Condos were built for low income people since the prices were well above what they could afford in the New Orleans Condo real estate market.
Most of the condos in the Warehouse District, Garden District, and French Quarter were not FHA approved for small down-payments and were over the FHA loan limits so you saw very little FHA loans in this segment. The condos that are having the most trouble selling is units that were conversions in Metairie and Kenner that are marketed for first home buyers. This segment does not have many buyers since the credit crunch. Many have become rentals and thus avoid the foreclosure market.
I also have not had any problem finding loans for people who qualify for loans. There are a lot of local lenders who are still looking for buyers and were very conservative during the past 4-5 years and stuck to old time lending standards.
We do see people wanting to sell for a variety of reasons that more more to do with their individual situations and the overall gloomy forecasts of the economy. These is especially true of people not living in the units, changes in job status and ones that have two notes. The current climate should make sellers ready to make a deal rather than waiting for an offer that may not come. Always good to know the “true motivation” of the seller.
Related Articles - Warehouse District Trends, New Orleans Uptown Condos

New Orleans Corporate Rentals

Renting your Condo as a Corporate rental? Extra Income!
October 2nd, 2008 categories: Second Homes

I have been selling a lot of second home condos this year and this is another thought that you can use. If you do not want to have your condo empty, you can pick up some extra cash to pay your condo fees and taxes. Anne Pierson, my good friend and client has some great ideas that you can use. Not only can she rent it out for top dollar, she can show you how to get it done. People want a New Orleans feel when staying here, let her show you how to get it done. Its amazing to me what she has done so read on.

Whether you purchased your condo as an investment property, a second home, or a primary home you now wish to sell, you have probably considered the idea of renting it out in order to create an income stream to help pay the expenses; or, you may already be renting your condo… But have you explored the new trend of appealing to the corporate rental market? You could be expectingmuch less than your condo is worth to these clients, and you could be overlooking a very reliable source of income.

New Orleans has had its economic ups and downs over the past few years, but one thing that remains hot is the rental market. More than ever before, professionals visiting the city to work are seeking upscale condos over long-term hotel stays, and their companies are paying the bills. This tenant is usually coming to the city alone, is here to work for a certain contract period, and will occasionally havehis/her family visit… but the rent is reimbursed by his company, and this breed of renter is not here to play. This client is going to take care of your property and leave your condo in great condition.

Not only is this a very stable, reliable source of income for you, as a condo owner, it also makes it possible to nearly double the amount of rent you are receiving if you outfit your condo with everything this kind of client expects.

In my case, I purchased two units in the trendy Warehouse District downtown. Both units were in need of repairs and upgrades. The kitchen appliances, bathrooms and floors were damaged, and there were potential loft areas that had not been finished. Here are some “before” pictures of one of the units:

We began with the kitchen and bath upgrades, following Eric’s advice about stepping up to granite counter tops, stainless steel appliances, etc. When the renovation of the condo was complete, I decided to use the downstairs unit myself for a few months, just to enjoy the city again after many years away.

As I furnished and outfitted the condo, I have to admit that I was treating it as if I were going to live there full time. I shopped the French Quarter for unique pieces of art, bought my favorite sheets for the beds and guest beds, bought pots and pans and kitchen utensils that were both functional and decorative, and generally went “all out” in completing the perfect little getaway for myself, my daughter and our guests. It was elegant, but cozy, just like a home. Here are some photos of the finished condo:

By the end of six months it was time to get down to business and rent it out. I put pictures of the condo on my website, began to advertise it, and was pleasantly surprised when I got immediate responses and signed a year lease with the third caller. The unit had sold itself, the pictures said it all. The second unit rented out much the same way and is now leased for a year.
After enjoying such ease and profitability on my units, I was surprised to find out later that other owners in my building were struggling to rent out their units and receiving half the rent that I was asking for mine. Why the difference?

The difference was all in the presentation… I had decorated and outfitted my units as if I were going to be living in them. The vivid colors, designer furniture and local artwork came across in my ads in a way that appealed to the corporate market… each of them were rented sight-unseen, based on their pictures on the website, as most corporate rentals are. The way the units photograph, the details, the high qualityinteriors… all this made my units unique, and I am now helping other friends and neighbors in the downtown area rent their units.
With a bit of investment, some attention to detail and using the experience we’ve gained working with other condos over the last year, a second home or investment property can pay for itself, plus a nice profit.

Anne Piersonwww.rent-condo-new-orleans.com318-789-8447