2007 Price per Sq. Ft. for a Hoboken Condo Exceeds ’06.
Prices peaked in May and surpassed 2006 through the end of this year. Average price per square foot was $533 at the end of 2007, 5% higher than at the same time last year ($506).
Average Condo Sales Price Held Steady at $500,000 for Past Two Years.
March May, June, September and October 2007 were slightly higher than 2006 while the rest were slighty lower. All along, for the past two years the average price of a Hoboken condo has been hovering right around $500,000.
Statistics Show that Properties Sold Faster in ’07 but That May Be Misleading.
Based on the MLS, it appears that most listings were sold in two months (from listing to closing).
These figures are skewed. Sometimes, a price change is entered on the MLS as if it were a new listing and as a result the number of days on market (“DOM”) resets back to zero. When that occurs, the average number of days will look lower than it really was. Given my knowledge of the Hoboken real estate market over the past 10 years, I find it more likely that price reductions of this nature drove the “DOM” number down.
Sellers often don’t take the advice of their agent and insist on listing their property above market rate. After the unit lingers on the market with no offers and little interest, the owner drops the price and then the property sells.
Condo Sales Volume is Seasonal
The monthly number of closed sales in ’07 was similar to last year. Both had a high point in the Spring, and decreased later in the year. In ’06 the number bounced back at the very end of the year but this year it did not. Of course, the number of properties actually on the market each month impacts how many sell.
Condo Listing Drop During the Summer and Holidays
Both ’07 and ’06 saw a significant drop in the number of properties listed at the end of the year (the holiday season) and during the summer (vacation time). There were actually fewer units listed this year than last. If you’re buying, you’re likely to have the greatest amount of inventory to look at in the Spring. If you’re selling, list in December and avoid the competition.
In my next post, I’ll take a look at the absorption rate by month to see what that tells us. In the meantime,
Happy New Year!