The French Quarter has been crowded almost every weekend this year. Many people have been thinking about a second home and many are deciding now is the time.  Many are local people which does come as a somewhat surprise.  They are looking for a get away place for themselves and friends.  Others are thinking about retiring and spending more time in New Orleans. Others have always wanted a place here and feel this is the time to make the jump. 

     Pricing has always been tough in the French Quarter since you have a lot of variables.  Many sellers think there condos are worth more than they paid regardless of the market condition.  Some may not really want to sell.  Others however need to sell.  The conditions will vary greatly from one unit to the next.  The location within the quarter is big,  the location within the complex is also large, second floor units tend to get more, balconies to the street get much more, balconies to a courtyard get more than those that have none.

     This makes the square footage method of valuing a lot harder for people to decifer.  Most will not have parking so that is not a huge issue.  If one does have parking its worth at least 30k-40k .  The area is too old  for most things to have parking. 

       Right now there are 85 units for sale.  There are 21 condos under contract.  Most close in 45 days so you can see the recent activity.  The ultra small units tend to be out of favor.  There are 22 units below 200k and many of these have been sitting.  Its the nice things that have been selling that have what people want in all price ranges.  Light and airy tops with windows and amenities in the complex.  Most want things fixed up and done nicely and will pay for it.  Few buyers want a project. 

        However some properties that need fixing can be great if they have all the other things that people want.  Great views, balconies, high ceilings, open spaces and in a nice complex.  I end up selling a couple of these per year and the buyers end up with some nice buys.  The common thread is that they all tend to put a lot of effort and quality in the upgrade.  These are all second home people that know what they want and have time and want to do it their way.

       It does always surprise people when you can get the best units down to 4 or 5 units before showing them.  Just not that many more to show in any given category.  The other tip is to keep an eye in those that are overpriced as many will end up selling at good prices over time.   As an agent we have our best picks and they do tend to sell.  Recently I showed a client 6 properties and the four top units sold within 3 weeks after I showed her.  The fourth took 3 more weeks and she has had but one new thing to consider in the last 8 weeks. 

       Last week the French Quarter Tour only had two new properties to look at.  The agents view the new listings every Tuesday so they can look at the inventory to see what looks good and what their clients may like.  This saves us time, gets us a free lunch, and the sellers gets a lot of looks quickly as it comes on the market.  If it looks good the agent will get in touch with his or her client to let them know if its for them.

    There are several reason for the sales trending up.  The Cotton Mills is easy to get financing as it has been approved for FHA loans.  One of the few complexes in New Orleans.  This means if you are an owner occupied owner you can put down 3.5% as a down payment.  The condo fees remain very moderate for all that you get.

   The featured amenties are a large courtyard, large pool, large party room and grilling area, a large gym, secure entrance, on site management and 24 hour security.  None of the units have parking but you can park across the street for $125  per month.  There are several other lots also available and you can still park on the street.

       The condo is listed at $189,272 and is in very good condition in a great location on the second floor over looking the large courtyard.  The features include an open floor plan with lots of natural light, courtyard views, very quiet area , wood floors throughout, excellent exposed brick, two large windows and has recently been painted.  Has a storage area above the bath and laundry room.  Lots of beams  and has an open feel.  The condo is 726 sq. ft. which is a nice size for a warehouse condo with 18 foot ceiling.

      The condo has been recently painted and looks great. The kitchen is nice but has not been upgraded but could easily be.  The floor plan is a open feel with the original hard wood floors.  Its an easy walk to the elevator but an easier walk to an exit about 20 feet away from the unit to the sidewalk below. 

    Once  agan this is a hard complex to beat for that Warehouse District feel for under 200k.  It now gets looked at by a lot more second homers as its a nice place to hang out.  The World War II Museum is a block away and the new Rouses Supermarket is a few blocks away.  The trnes for the area are looking up and so is the Cotton Mill Condos.   More Photos at New Orleans Condos under featured condos. 

     What makes it a viable choice is the starting price one bedroom townhouse style for an almost new unit is only $109,000 with condo fees of $152 per month.  You have a well managed complex with on site management.  Metroview has two swimming pools, easy parking in a secure area.  Extra places for visitors as well.  An on site gym can keep you fit while you eat your way across New Orleans.  Every unit has its own private balcony.

     The condo conversion took place in 2006 and is 80% sold and the remaining units are new in that no one has lived in them as yet.  New appliances, granite counter, brushed nickle appliances and new carpet.

      There 2 bedroom units  at $145,000 and $149,000 with several three bedrooms at the $165,000 level.

    Its close to I-10  and an easy walk to Clearview Mall and plenty of places to eat and drink.  The central location makes it a natural at this price.   Second homes require that you put 20% down so your total note with condo fees are less than $700 per month.  The price and location should make it worth reviewing the pros and cons.   

      The condos at Metroview would also make some nice corporate  units for companies needing an inexpensive place that is very nice that your employee’s would enjoy.  I am the lising agent for the complex and the idea to promote this as a second home came from a couple of my clients who wanted something affordable but nice.  Its a condo complex where you will not have to worry when you are away.

    Its a great deal for New Orleans residents at any of the local hospitals where you may be heading.  Best to call Barbara to get all the details about the New Orleans Doctor Loans for 2012.

    I just found out about this as I sell condos to doctors all the time and was looking for something like this.  I have had bad experiences with the few out of town programs that I have been involved with.  Never had an issue working with Barbara.  An in house program allows for swift answers to you questions. 

    The rates are 3.3% with nothing down.  Yes 100% financing.  The term of the loan is 5 years amortised over 30 years.  It is like a balloon note but they will work with you at the end of the term if you need more time.  You can get the loan now even though you are starting in July.  Lets get you settled now with the loan and then I can find you the best possible condo that I can.

     Some Quick Facts on the Numbers

         Renting for 4 years at $1200 pr month is $57,600 and that goes to your landlord never to be seen by you again. 

      Borrow $200,000 and your principle and Interest is $875.91 per month.  You will have condo fees and taxes to add to this.  The total outlay will most likely not be much more than the $1200 in rent.

     Your reduction in principle or your equity after 4 years is $16,698.66.  The number increase monthly.  You can deduction the interest as a home owner to the tune of $25,345.02 over the four years.  Let Uncle Sam help you out now as you will certainly help him out later.  This really lowers your out of pocket expenses by almost $400 per month.

     If your condo goes up in price by 1% you will gain $2000 in one year.  Prices are trending up in New Orleans and the  total appreciation can easily be $10,000 over the 4 year period.  People I sold the last 2 years are up in almost all cases.  I do not expect to have the down trend that we had in 2008-2009 period.

     So its worth calling Barbara at Patterson State Bank 504-616-8067.  And call Eric for the condo or home ideas. I have some starting as low as $109,000 with an easy ride to most all places where you would be.  That is $477.37 per month on the principal and interest with condo fees of $152 per month. Your total cost will come in under $800 per month for a new place.

       To make this picture become clearer just ask questions and get some answers.  This is what we do well.  Its a big decision but we can make it a little easier for you and it can be cheaper than renting.

      I had a couple of recent sales where my client was the only one to see the condo because it sold on the first day that it could be shown.  Missed out on a couple as well as my client could not react fast enough.  Always a good idea to start looking several months before so you can get an idea of the trends in the neighborhood.

     There are a couple of nice things available but the parking does not come with the unit.  Parking can generally be found but may have to walk a block or so.  This is not a big deal for a second home buyer but it is a big deal if you live there full time.

    You can still get a nice one bedroom in the 185k range to 220k that has been updated and has parking or access to parking.  Many of the two bedrooms will have parking but the prices start in the 280’s range for the 900 sq. ft size and go up from there. 

           The Warehouse District is attracting more second home buyers than ever before.  The Warehouse District has become a place where there is always a lot of things to do.  The World War II Museum is expanding.  The Convention Center has been having a great year. The Saints weekends have been becoming larger and larger.  So just a lot going on each and everyday.

       The new VA hospital and LSU Medical Center are in fact going up and people in the area know that this will bring in more people that will desire a lifestyle of the New Orleans Warehouse District.  The movie people love the area as a base of operations.  Some of these people start off as rents and then become buyers in New Orleans. 

         I still get a lot of request for second home buyers who want to look but are not quite ready.  In each category there are only a couple to look at.  The good ones will go before they get to see them or can make up there mind. These buyers have to get started early.  Start looking on the Internet. Get financing in order.  Begin to look at some other great areas where the supply and prices may be lower.  

        In short the market is good to very if the condos can be financed and they have most of the things people are looking for.  Buyers are still just not going to buy anything so it has to be prepped for sale and be at a reasonable price.  Buyers can generally get financing in most of the condos with interest rates at about 4%.  Always best to stay with a local lender so the process is smooth and you can close on time.  

       This will give you a great idea of the  New Orleans Warehouse District Lifestyles. The future of the area looks bright so now when rates are look and prices are still good, the next several months is a window that may soon close…..

      Several years ago the French Quarter was the place to be.  It still is in demand for the nicer and more expensive units.  The slowest segment of this market is the ultra small units while the nicer more expensive condos are selling briskly.

     More and more buyers are willing to look in other areas as well.  The Warehouse District has been doing well for the past 4-5 years for second home buyers.  Now we are seeing people venture to all areas of the city.  Most want a place where they can walk to restaurants, shops and be near the St. Charles Ave. Street Car line.  The areas in the Lower Garden District, Garden District, Uptown are all getting attention this year.

     The area between Magazine and St. Charles has been one of the better areas for all these reasons. Its just easy to walk to places and find things that have that New Orleans feel.  You can walk to a variety of stores and restaurants that you will not find elsewhere in the United States.  You can mingle with people from all walks of life.  Talk about the Saints and Politics and you will get a lively discussion from most locals.

    The interest rates for second homes remain low at about 4% if this is going to be a second home.  Always best to use a local lender who understands the New Orleans Market.  Stay local and be happy and satisfied.  I can always recommend the best as my job depends upon it.

     One question I am always asked is about renting the condo when the owners are not here.  All the condo docs are going to say not leases for anything less than 60 days and more.  This is a city law so all condo documents are going to state this.  Many are longer terms for leases. 

     I am always asked about flooding as well. Very few of these areas flooded during Katrina or during the recorded history dating back to the 1750’s.  This was and is still high ground. 

    The good to great rental business is for people wanting corporate places for several months at a time.  These could be people on a short assignment for a variety of jobs.  The movie business has been booming and it takes several months to shoot a movie.  There is a lot of construction going on and people need places to stay.  Companies are not moving people as much but pay a per Diem to someone on a temproary  job that could last months.

       These people do not want to stay in a hotel.  I have a good friend and past client Ann Beck who specializes in this segment and she says her business is booming.  She can get you set up once you purchase according to the rules and regulations.  Let her screen the clients for you.

        The street car is only $1.25 for a one way ride and runs from 6 am to midnight.  An all day pass is only a couple of bucks more.  Not bad for the oldest running streetcar line in the United States.  Plenty to see along the way….

   1.  The interest rates are still very good. At around 4% for a 30 year fixed.  A client of mine got   3.25% today for a 15 year loan.  People are feeling better about the economy and New Orleans.  There is a general feeling that the rates will not stay this low once we get to 2013.

   2. The condo foreclosures in this market are far and few between. I can count the nice ones on one hand over the last 18 months.  This part of the business in New Orleans Condos never amounted to more that 3-4% of the business and they sell within days of hitting the market.

    3. Many of the buyers are buying second homes as they find New Orleans a great place to visit and be for more extended periods than in the past.  Many have plans to stay longer and longer if their jobs permit.  Many are not anchored to a location where they can work.  This is a new factor that was rarely seen a couple of years ago.

    4.   The condo sales have followed the the housing sales.  The New Orleans proper real estate market started improve last Spring.  The delay for condos was 6-9 months before it really started improving like a rocket…..This housing huge as people who cannot get into a house will settle for a condo based on price.

     5.  Few new projects have been created in the past 4-5 years since Katrina.  Developers are thinking about it again.  The lenders have created problems for not wanting to finance new projects, basically Fannie Mae does not want to finance new condo projects.  They are behind the curve or at least in New Orleans.

      6.  Many of the sales are cash sales which mean these buyers do not have to stress over notes or face issues with lending.  Many others put 30, 40, 50% down with plans to pay them off in the coming years.  This is a great sign for the future.  New Orleans had a good number but this year 30-50% of my sales fall into this category.

     Its not however happening in all areas of New Orleans.  This dramatic uptick is in The French Quarter, Warehouse District, Lower Garden District, and Uptown.  Some the other areas will come in to play as a cheaper alternative.  It will just take time to spread.  Its tough to fight the trends unless you can figure out the next trend.  I think I may know the answer…….The outlook is Sunny for New Orleans.

       This condo was just listed in the New Orleans Warehouse District.  It measure over 1450 sq. ft. of living with high ceilings, 9 large windows, wood floors, large rooms and plenty of natural light.  It is unusual in today’s Warehouse Market to find larger places.  This development is over 11 years old and the trend then was for larger places. The 2 bedroom and two bath has a lot going for it.The condo is priced at $449,000. 

     The open floor plan with large bath rooms is not the norm. Plenty of closet space as well. The wood floors have been recently refinished and look great.  No carpet in this unit.  It does have two masters each with a full size bath. One with shower and one with a tub.

     The 4th floor is the top floor of the original building on the 4 th floor and is a corner unit. A couple of town homes are atop the building with a very large common area deck for the 21 units in the condo complex.  One of the better locations in the area. Garage parking is on the first floor with a small lobby and elevator.

    The open floor plan is a great feature and can be used in a variety of ways but the space is wide and open.  The kitchen can be improved with a new buyer when they add their touch.

     The building was once a leather good factory around the turn of the 20th Century.  It was known as the Whitney and Sloo Condos after the name of the factory that made bridles, saddles and other leather goods that were needed so much in a port city like New Orleans.

    Want to see more photos visit New Orleans Condos  and click on Warehouse District Listings or Listings.  This will give you more photos and info.

    Within easy waling distance of many bars and restraunts.  Easy walk to Harrahs, French Quarter, Convention Center, Super Dome, New Orleans Arena and all the venues that the Warehouse District has to offer.

    It gets even better as you can ask for the seller to pay your closing cost, up to 3% under the new rules.  This means you can save your cash and buy with very little down for a home.  This is perfect for a person making less than $60,000 or more for a family.  Could easily be cheaper than renting and you build equity and have pride in home ownership.

    The credit for a  home costing $200,000 would be $7000 and you can ask the seller for concessions of another $6000.  Borrowing a $100,000 at 3.5% for 30 years for principal and Interest is only $449 per month.  The oddity is at these low rates is at the end of year one you will have paid down you loan by $1757.  You will have paid $3183 in interest payments which are tax deductible.  Borrow 200k and then you just double the numbers. 

    There are other requirements but if you qualify this is a great deal to put you in a home with a minimum amount of money. Allow about two additional weeks on the loan to close just to be safe.  First step is to get pre-approved for the loan then start your search with an experienced agent.

       Only certain lenders will be handling the Bond issue but my Favorite Lender Julie Baudier at Standard Mortgage is.  Its outstanding service and low cost as well as being a great deal.  She can be reached at 504-583-1793.  Check it out and then I can get you started with the search.

       The majority of the condos have been converted from old homes or apartment homes.  In the early years of the conversions the developer would do a little remodeling and turn them into condos.  Now we are beginning to see a more upscale developer who is doing a total rehab down to the studs.  These are going to be more expensive but they are also more in demand. 

       The biggest reason that the sales are picking up is that you can get a real New Orleans feel with high ceilings, large windows, porches, balconies, wood floors and the things that people like about the historic home feel.  This is the segment that has shown the best strength and will continue to do so.   The better the conversion the more in demand they will become.

     Coliseum Square Park and the surrounding area is the center of a real “comeback feel”  neighborhood.  You can walk to St. Charles Ave. to take the Streetcar or walk a couple of blocks to Magazine Street which is undergoing a renewal in the area as well.  You can see it in the remodeling, restoration, and type of business that is moving into the area.  You also have movie studios and sound stages moving in as you get closer to the Mississippi River.   

     I have now sold 7-8 condos in this area to people who wanted second homes in other areas and could not find what they wanted so I suggest they look in this area.  Several wanted more space as they wanted to live there full time.  They found what they needed here as well.  This has all happened in the last year and I am only one agent.

     These sales have come in a lending environment that has not been kind to new condo developments but the sales are beginning to pick up with a higher degree of cash sales and buyers putting down more cash.  This is a good omen for the future.  You do have some local lenders that are easy to work with and understand the local real estate business.  The supply of units is down but I can see the demand coming back.

     I wrote an earlier article on the Garden District Garden District Condos which is doing as well but has very little inventory.  Below is one of the many historic homes you  find in the area as well.  Condo prices are following the housing demand but tend to trail it.