2008 May 7th

Hoboken Condo Sales Prices Hold Steady in April

Hoboken Condos Lure Buyers in April

April was a pretty good month for Hoboken condo sales. The end of month numbers are in and Hoboken condo sales remain fairly strong. I know, there are stories in the press every day about the collapse of the housing market and we all have witnessed prices skyrocket at the gas pump and grocery store. While our country has some significant economic woes that are likely to get worse before they get better but, for various reasons, people want to live in Hoboken and continue to be willing to pay top dollar for Hoboken real estate.

Average Sales Price of Hoboken Condos is Up 8%

April sales figures represent a 8% increase in average sales price for a Hoboken condos compared to last month. The average price of condo is now just over $560,000. That’s 5% over the same period last year but 3% less than April 2006.

Price per Square Foot Down Slightly

Last month the average price per square foot for a Hoboken condo was $520 and in April it was $517. Of course, that is just an average and the real number varies depending on the usual factors – location, condition, and promotion. The mix of units sold each month also has an impact on this figure. Smaller units tend to sell for more per square foot than large ones. So if more large units sell in a given month it may tend to pull down the average. This may have been the case here since the average size jumped from 1000 square feet in March to 1087 in April.

Hoboken Property Is Selling Briskly – 72 Days on Market is Average

The standard measure of sales activity is “days on market”. This number dropped from 90 days in March to 72 days in April. Of course, the nice weather has an impact on how many buyers are willing to go out condo shopping. We are in the midst of prime selling season.

Here is a Chart View of Monthly Hoboken Condo Sales To Date:

So How Much is My Condo Worth?

This is the question I’m most frequently asked. Here is the best answer: If your condo is in average condition, in an average location, and shows decently it is worth about $515 to $520 per square foot. If it is better than average with respect to condition and location you may get a bit more. If worse, a bit less. The best way to know where your property falls is to go out and look at similar units currently on the market. Even better, bring a friend with you to give you an objective point of view. Owners are usually skewed towards overvaluing their property because of their emotional attachment to it. So get a second opinion as a reality check. Is there a real estate agent who will tell you your property is worth more than it really is just to get your listing? Absolutely, more than one. Remember, they can tell you it’s worth a lot more than it really is and you can ask for anything but that doesn’t mean you’re necessarily going to get that price. What you will get is determined by the market so the better you know the market, the better you will be able to price your property when time comes to sell.

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  1. K-Dog

    As someone who is presently in the market, we’ve experienced our first low-ball bid. As ludicrous as the offer was, I was not inclined to take offense… it is indeed a buyer’s market. What is not being considered by ‘low-ballers’ (both figuratively and physically) is the intrinsic value of Hoboken in the long term. The W Hotel opens this Autumn, the Lackawanna Ferry Station will be a signature destination, and compared to Manhattan prices, Hoboken is still in incredible deal.

    For those who seek to find or negotiate their way to pricing that reflects Union City rates, in Hoboken itself, perhaps they should venture up the hill. Take note that one should carry a weapon at all times, given the excessive crime rate in that town. I personally recomend a snub-nose 9 milimeter handgun. For Jersey City – a billy club will do.

  2. Lori Turoff

    K-Dog,
    If you’ve been reading my posts you know I agree with you about the long term value of investing in Hoboken. What too many buyers forget is that the primary reason they should be buying is to have a great place to live, build equity, and perhaps make some money in the long run. In my opinion, that is still very possibly in Hoboken. It’s the buyers who think they can buy and hold for a year or two and see 20 to 50% returns that are disappointed. But then, they are probably buying for the wrong reasons.

    Good luck with your sale.
    – Lori

  3. Tiger

    I think the negative lending market in general is affecting Hoboken (i.e. less qualified buyers / SCARED buyers), but to be honest, it would have been stupid to think that we will come out of it completely ‘unscratched’. Hoboken properties a) held their own, b) only now showing a bit of an inventory build up (which is still nothing compared to the rest of the country), which is still impressive in any measure!!!

    I bought my condo last April and I am THRILLED to have it, my dad encouraged me to buy and he told me that there’s no ‘right’ time to buy, especially when you are talking about a place you wnat to live in and enjoy.

  4. Matt

    Can you do a comparison to the last 2 years like you did last month?

  5. Lori

    Matt,
    Yes – I’m out of town but I’ll post it as soon as possible – hopefully tomorrow.
    Lori

  6. Lori Turoff

    Matt
    Here are the numbers for this year, last year and the prior year:
    Avg. Sales Price April
    ’08 564,564
    ’07 533,055
    ’06 578,573

    $ per sq. ft. April
    ’08 519
    ’07 512
    ’06 532

    Days on market April
    ’08 70
    ’07 82
    ’06 62

  7. Marc Granito

    Quick question. My unit is just over 1400 square feet and the patio is around 700 square feet. Is there any formula that you would use to count the outdoor space when looking at a price per square foot?

  8. Lori Turoff

    Hi Marc,

    While there is not a strict “formula” to calculate the value of outdoor space, it certainly does have value. A 700 sq. ft. patio is quite large! Typically, assuming we are talking about newer construction, a regular balcony is worth about $10,000. The units above the garage, usually the 2nd floor, with the large patios similar to what yours must be, add another $20,000 to the value of the unit. It does depend, however, on the exposure (sunny, shady), what you face, and who your neighbors might be, though.

    I’d be happy to come over and take a look if that would be helpful.
    Thanks!
    -Lori

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