Archive for February, 2008
Hoboken Real Estate Sells for $116 Million.
Categories: Hoboken New Construction, Market Analysis
Hoboken Developer Tarragon To Sell Prime Property at 1000 Jefferson Street
According to CNNMoney.com, the publicly traded real estate development company, Tarragon Corp. announced the sale of their recently completed rental project at 1000 Jefferson Street for $116.2 million. Tarragon was responsible for the development of The Upper Grand condominiums, in Northwest Hoboken, and is currently involved in two more residential development projects in Hoboken. The buyer is an unnamed major institutional investor. Good to know there are buyers for Hoboken real estate out there.
Hoboken Gets Parks, a Pool, Community Center and a Movie Theater?
The article goes on to quote the President of Tarragon Development Corp., William Rosato, saying “With this successful transaction, Tarragon looks forward to continuing its role in the redevelopment of Hoboken where we and our partners control almost 20 acres of land proposed for development of rental and for sale housing, a public swimming pool and community center, parks, a multi-screen movie theatre and retail uses”. We shall see what use they actually make of their holdings.
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The Weekly Wednesday Wrap-Up of Hoboken Condos and Homes Sales Activity
Categories: For Buyers, For Sellers, Hoboken Brownstones, Hoboken Condos, Weekly Wednesday Wrap Up
Hoboken Real Estate - As Of Wednesday, February 27th:
Studio & One Bedroom Condos:
Total Active: 135 Under Contract (Dabo’d): 60
Sold (Deals Closed) This Week: 4 Average Sold Price: $331,250
New Listings This Week: 14
Two Bedroom Condos:
Total Active: 224 Under Contract: 95
Sold: 11 Average Sold Price: $675,363
New Listings: 18
Three Bedroom Condos or Bigger
Total Active: 38 Under Contract: 11 Sold: 0
New Listings: 0
One Family Houses
Total Active: 8 Under Contract: 4
Sold: 1 Sold Price: $1,075,000
New Listings: 1
2 - 4 Family Houses
Total Active: 19 Under Contract: 7
Sold: 1 Sold Price: $935,000
New Listings: 1
Remember - these figures represent only properties listed and sold on the Hudson County multiple listing service. They do NOT include new construction sold directly by developers such as Toll Brothers.
Compare to last weeks activity and inventory.
Compare to the week before.
Compare to week of Feb. 13th.
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Where NOT to Learn About the Real Estate Market
Categories: Finance, Market Analysis
There is no Wall Street In Hoboken
There was a recent article in the NY Daily News by Peter Siris, the “Guerilla Investor” to which I take exception. In the interest of full disclosure I will tell you that I know Peter because many years ago, I worked for his wife. I am sure he doesn’t remember me. Peter wrote about the difference between investing in stocks and real estate e. He starts out by saying that “there are big differences between investing in stocks and buying and selling in real estate” and then completely ignores his own statement. Peter’s argument, as I understand it, is that real estate is riskier than stocks because margin requirements force an investor to maintain a greater equity stake in stock purchases. Housing prices may continue to drop and a large number of homes may be worth less than their equity. (I take it he means that the mortgage obligation on these properties will be greater than the market value of the property). According to Peter, that may precipitate a crisis.
You Can’t Live In Your Stock Portfolio
There is a primary, fundamental difference that Peter ignores. Stocks are an investment. Real estate, for the most part, is where people live - it is their home. Investors may buy stocks hoping they will appreciate or pay income in the form of dividends. People buy real estate to have a roof over their heads. If stocks go down and the investor takes a loss it’s still purely an investment. Real estate is different. All those homeowners whose value dropped can’t just sell their homes and not have another one. They still need a place to live. If they do sell, even at a loss, chances are other properties in their community have been similarly impacted and the new property they buy can be bought at a commensurately lower price. Some may refinance and get a mortgage more suitable for their financial situation.
Investors can Rent and Profit Rather Than Sell
What about people who purchase real estate as an investment? They, too, do not necessarily need to sell and when housing prices fall rents tend to rise. Real estate investors typically earn greater rental income even when their properties value has declined. That has certainly been the case here in Hoboken.
Sellers Can Be Greedy
I recognize that there are buyers who over-reached and now can’t make their mortgage payments and may even face forclosure. It’s true that there were innocent (typically lower income) buyers who were misled by unscrupulous mortgage lenders and have had balloon payments become due or interest rates reset. How many homeowners, however, have put their homes on the market not because they must but because they are curious to see how much they can get above what they paid? When they learn that they can’t get what they had hoped for, they decide not to sell. They wait until the market improves or don’t sell at all and just keep living in their home. Not every homeowner with a drop in value is going to sell their home.
Apples are Not Oranges
There is difference between the margin requirements for buying stock and the mortgage requirements to get a home. An investor can walk away from a stock purchase and write it off as a loss. Even if homeowners have no equity in their homes, if they don’t have to sell, they haven’t lost anything. They still need a place to live. Stocks and real estate are like apples and oranges. The comparisons Peter tries to make just don’t hold.
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Friday - Hoboken Street Cleaning Suspended
Categories: Crazy Ball
Snowboken
Due to today’s snowfall, there will be no need to move your car for street cleaning. Be aware, however, that there is no parking to allow for emergency snow removal along parts of Washington Street - so check the street signs! Have fun and take your dog out to play in the snow!
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The Weekly Wednesday Wrap Up - Hoboken Property Inventory & Activity
Categories: For Buyers, For Sellers, Hoboken Brownstones, Hoboken Condos, Weekly Wednesday Wrap Up
Hoboken Real Estate as of Wednesday, February 20th
Each week, I’ve been providing you with the statistics on the number of condos active and under contract as of today. In addition, I’ve told you the number of new listings and sales that took place from last Wednesday through last night. This week, I’m adding the average sale price for the closed deals. All of these are presented by unit size. Let me know what you think.
Hoboken Studio and One Bedroom Condos:
Active 127 Under Contract 58 Closed 1 Avg. Sold Price $490,000 New Listings 5
Hoboken Two Bedroom Condos:
Active 225 Under Contract 100 Closed 4 Avg. Sold Price $549,125 New 15
Hoboken Three Bedroom and Larger Condos:
Active 41 Under Contract 11 Closed 2 Avg. Sold Price $612,500 New 5
Hoboken 1 Family Homes:
Active 8 Under Contract 4 Closed 0 New 2
Hoboken 2 to 4 Family Homes:
Active 20 Under Contract 8 Closed 0 New 2
PS - the above view is Hoboken from the roof deck of Harborside Lofts. Worth a million bucks, no?
Compare to week of February 13th.
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