by Middleton O’Malley
What’s driving the demand for Uptown real estate?
- The growth in real estate value in greater New Orleans has been fueled by tech business, tourism, manufacturing, hospitals, building trades, shipping, and, importantly, by the people streaming into the city who simply want to live here. New Orleans, after the shattering experience of Hurricane Katrina and subsequent city-wide redemption, is a very cool place to hang your hat. The people coming here to support various industries is causing a steady escalation of rents and home prices in all demand neighborhoods, but nowhere more profoundly than in Uptown.
Why is this happening
- Among affluent younger (sub 50) buyers, especially those with families, Uptown has attained a status that exceeds the Garden District.
- Why? There’s more going on because it offers a village-like atmosphere with max amenities.
- According to one recent report about Bywater, the ratio of adults to kids is very low, causing a shorter neighborhood life span. By contrast, Uptown New Orleans has many families with kids which gives it greater stability and a longer growth curve. This means an investment in Uptown has a longer future.
- Living in any city demands good street smarts, but statistically, Uptown is relatively safe and most Uptown neighborhoods have neighborhood funded security patrols.
- Uptown offers top-shelf restaurants, Audubon Park, banks, stores of all kinds, surface transportation, and easy access to hospitals and good schools.
- Many areas in Uptown have favorable flood zones to reduce insurance costs.
* The value area that offers almost all of what Uptown has to offer but at a lower price, is the University Carrollton section of Uptown.
Buying A Home In Uptown? What buyers in demand areas need to do to be competitive
- For well located, good quality homes in the 500K-800K range, expect to pay 97-98% of list price, minimum. Our negotiating skills will help you.
- Similar homes in premium locations in excellent condition command list price, and more.
- Many buyers are willing to do almost anything for a great home in a first class location, so unless it’s absolutely necessary, avoid any demands or requests that might be challenging to a seller. We will help you write a clean and uncomplicated contract.
- Unless the house you need to sell first is going to an act of sale soon, avoid any kind of contingency offer, because sellers will probably not give it good, if any, consideration.
- If you really want a great house in a highly competitive sections of Uptown, (after careful consideration of comps and other factors), offering more than list price is not out of the question. Buyers who make an all cash full price offer, and those who, if possible, waive an appraisal, have an advantage. (Waiving inspections is not advised but that does happen as well). Our experience will help you make the plan that works best for you
- If not able to pay cash, offer a quick close, a limit on inspection requests, always have a copy of your mortgage pre-approval letter, and a copy of your deposit check to include with the offer.
- Avoid getting too demanding with your inspection response or asking the seller to pay for a home warranty, pre-paids, or closing costs.There’s been a modest softening of Uptown prices, and the number of homes that have had price reductions has increased. But those price reductions are due to some sellers ardent hope that the nearly vertical, price growth curve from 2013 to mid 2015 is still there. That luxury has diminished, and artificially high asking prices in a market that has stabilized causes price reductions. While this is a statistical fact, well staged, well located homes in excellent condition still sell in record time, and for all the money.
Tip: Overpricing a home generally results in getting less at sale than if it had been priced correctly in the first place.
A final comment…Over a dinner with a prominent New Orleans real estate agent, we discussed the increase in Uptown real estate prices. His prediction… “Uptown price escalation will see no immediate end and ultimately, prices will approach NYC-like numbers”. Another prominent broker for one of the largest agencies in the city shares his opinion. While it is true that price escalation has tapered off to a duller roar compared to prior meteoric increases, high demand continues, prices are stable, and inventory remains relatively low.
Along with our associates, we are able to help you get the best deal, and make every effort to insure that you get the house you want in any section of the city. If you lose a house, it means someone else has won. We are here to help you win.
Mary Margaret Kean, Realtor
Middleton O’Malley, Realtor
SRES (55+ Specialist), GREEN (Sustainable Building Practices),
ABR (Accredited Buyers Rep), GRI (Graduate Realtor Institute)
Coldwell Banker, TEC Realtors
4500 Magazine St., Suite 2
New Orleans, LA 70115 USA
Re/Max Jaret & Cohn
25 Park St.
Rockland, ME 04841 USA
licensed in Louisiana & Maine