2008 Apr 3rd

Hoboken Condos Sales Activity Shows Ever So Slight Signs of Slowing

The March Numbers Are In for Hoboken Condos Sales

Since the start of 2008, the typical measures of market activity in the Hoboken condo market have shown signs of a slow down but they have been very slight. The average sales price of a Hoboken condo in March was $538,722, down for the third month in a row. Price per square foot, however, was $522, up from last month but not quite back to January’s level. The average list price fell for three consecutive months. That number does not reflect prices changes. It is the list price at the time the property actually sold. There may have been price reductions from the original list price on many properties as sellers realize they can no longer count on a 15 to 25% increase from the most recent sales prices of similar units in their buildings.

Here is the chart:

The number of condo units listed rose by a whopping 74% in the month of March while the number of units sold fell slightly. Part of the increase in new listings might be attributed to the many sellers who waited for milder weather to list their units but the increase is significant. As of today, the absorption ratefor condos in Hoboken is 6.5 – that means it will take over 6 monthsto sell all the condos currently for sale in Hoboken. Just 3 months ago, this January, that number was 5.8. Inventory of Hoboken condos is on the rise, making for more of a buyer’s market than previously.

How Does This Year Compare to Last Year?

What is interesting, is that when you compare the first quarter of this year with the past two years, there isn’t very much difference in most of the numbers. The two that do stand out, however, are the drop in the number of units sold, mentioned above, and the increase in number of days on the market up to an average of 90. So even if prices have been relatively stable, the volume of sales has decreased. Both factors give buyers the opportunity to pick and choose before committing to purchase a property.

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  1. Tiger

    Thanks for the statistics Lori! As a homebuyer myself I have noticed a STEEP increase in asking prices at the end of Feb and begginning of March, I was wondering what were the sellers thinking. Perhaps this is one of the reasons why the number of listings has increased and the number of sales decreased.

    However, later in March I started receiving good, well priced condos.

    In this market it is all about good aggressive pricing. If the condo is priced properly in Hoboken, it will be snatched, period! If not, watch it sit on the market for MONTHS.

  2. Lori

    You’re correct about pricing, Tiger. I’d like to be able to track price reductions over time. It would be really interesting to know how many properties started out listed at too high a price and then had to be slashed as well as the amount of the price cuts. Unfortunately, our MLS doesn’t give me a way to track that except by looking at each and every listing one by one. That task would take many more hours than I can spend. Thanks for your comment.

  3. Tiger

    I know! Sometimes I get MLS listings which are ‘new’, and like you mentioned here actually they are properties which have been on the market, if I wasn’t manually keeping track of the properties that fit my criteria, I wouldn’t have known. One particular unit dropped from $410 to $400 to $390 to $380 in two months, and it all appears as ‘new’. It was too late for me as I already am closing on a condo, but has this unit been offered at $380 to begin with, I would have taken it immediately! I think it sold now so best wishes to both the seller and the buyer :-)

  4. rb

    what are the “solds” based on? closings in the month, or closing info from mls? there’s a big difference. if realtor/brokers don’t update mls which happens a lot then the “solds” is not a complete number. so some explanation would be helpful. does anyone compare solds per mls vs solds from the “public records”?

    the number of listings in 06 was double the listings in 08 yet sales are less? indicates that someone forgot to post solds?

    like to hear the detailed source of this info.

    thank you

  5. Lori

    RB,
    Why do you state that realtors don’t update the MLS? Do you have any actual experience with this? In fact, we are required by the MLS (at least here in Hudson County) to update the status of our listings within 24 hours. There is no motivation for an agent not to report a listing as sold. So I respectfully disagree with your assertion that the “solds” is not a complete number. In fact, the tax records are updated manually by the staff at the county clerks office. They tend to be much more out of date than the MLS.

    Listings in ’06 were not double those in ’08 in any of the three months posted. As the article explained, that there are slightly more listings and fewer closed deals indicated that there is more inventory on the market right now, giving buyers more choice and more bargaining power. I hope this answers your questions.

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