Central City New Orleans Home Prices
From 2012 to 2015, we saw massive price increases for homes in Central City. It became one of the hot spots in New Orleans real estate, particularly for properties close to St. Charles Avenue. Oretha Castle Haley Blvd. exploded with new businesses.
The current news is not as rosy, with Primitivo, one of the first dining spots to take a chance on OCH, recently announcing their closure. Street work in Central City has put the damper on businesses located on the main Central City drag. But what’s happening with home prices in the area?
Single Family Home Prices in Central City
After peaking at an average sold price of $250,865 in 2015, prices have been dropping since. The 2016 average was $214,112, and the 2017 average as of May stands at $177,693.
Multi-Family Home Prices in Central City
The news is better for multi-family properties, which saw average sold prices of $149,447 in 2015, $166,384 in 2016, and $165,255 as of May 2017.
Why the drop?
I thought perhaps it was the condition of homes being sold. In 2015, more than half of the sales were new construction and properties in very good and excellent condition. 19% of the sales were homes in poor or fair condition. Fast forward to 2017 and the percentage of sales in poor or fair condition has actually dropped to 18%, so that’s not the issue.
Then, I thought perhaps the sales in 2015 were all closer to St. Charles Avenue, which has always commanded a higher price, but that’s not the case either.
In my opinion, Central City, like many other neighborhoods in New Orleans, was redeveloping too quickly for demand to keep up with ever rising prices.
We will keep an eye on the market to see if there’s a turnaround.
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