New Orleans Condo Sales
We’ve been seeing a shift in New Orleans condo sales this year. After years of increased pricing, the market is beginning to soften in a couple of areas.
If you’re a seller, you want to understand where demand is moving in the city (and price accordingly).
If you’re a buyer, you want to watch the market in the neighborhood you are most interested in. Falling prices may represent a move up opportunity for you in 2017.
Orleans Parish Condo Prices
The popularity of condo living can’t be understated, particularly for folks relocating to NOLA from urban areas where condo living is the norm. New Orleans was late to the game, but the number of new units and conversions exploded over the last 10 years, driven by an increased demand for this style of living.
Have we reached a tipping point?
After several years of increased appreciation, prices across the parish have begun to stabilize. There has been a very slight dip in average sold prices from 2015 to 2016. That’s not surprising, given the 13.5% increase in average sold prices last year. At the same time, the number of units sold has plummeted by 27.5%.
Where are most of the changes happening?
French Quarter condo sales
After 4 years of consistent appreciation, 2016 has produced a decline of 3.7% in average condo sale prices in the Quarter. There were 126 units sold in 2015, but only 72 units sold so far this year. As sales slowed in the fall, the months of inventory has skyrocketed from 9 months in September to 31 months at the end of November. Available properties far outweigh buyers in the current market.
Garden District condos are showing a minimal change from $270,675 in 2015 t0 $271,892 in 2016. However, the number of sales is forecasted to be about down by about 9% by the end of 2016. Most of 2016 was a seller’s market in the Garden District, but inventory has increased over the last 90 days.
The University area has recorded an increased average sales price from $397,595 in 2015 to $436,975 in 2016. The number of units sold in 2016 (22) has already surpassed 2015 (21).
Uptown displays an increased average sales price from $334,898 in 2015 to $374,654 in 2016, along with an increase in the number of units sold (12 in 2015 vs 14 as of 12/8/16).
CBD/Warehouse District combined
We are seeing a significant change in the CBD/Warehouse District market, with decreased average sales prices. Moving from $546,115 in 2015 to $488,670 in 2016, not only did prices drop by 10.5%, but the number of units sold is projected to remain almost stagnant from 2015 to 2016.
Central Business District only
Average sale prices have declined by just over 20% this year, while sales are projected to be flat. CBD living appeals to a specific demographic, and the influx of new luxury rentals have certainly had an impact on the sales market.
Warehouse District only
Price declines are occurring in the Warehouse District as well. Sale prices are down 12.3% from 2015, so this market is not dropping at the rate of the CBD, but is no longer commanding the prices it did last year. In addition, sales are down by about 1 unit per month. That doesn’t seem like much, but there are a significant number of properties on the market and well over a years worth of inventory today.
Mid City Condos
Mid City condo prices have gone up dramatically from 2015, but the number of units sold was slashed in half this year. The decline is sales shouldn’t be a cause of alarm for sellers, though, because there are few properties for sale in the area, resulting in the low number of sales.
Do you have questions about the condo market in your neighborhood? Give us a call at 504-327-5303 and we’ll be happy to share our market projections with you.