2008 Jul 29th

Does Size Really Matter? When it Comes to Hoboken Condo Sales – Not Much

Size of Hoboken Condos Has Stayed The Same Over Time

One reason the average price of Hoboken condos might have risen so consistently over the past decade might have been due to the size of those condos increasing over time. That is not the case. Size has remained pretty consistent. The average has been right around 1000 square feet for quite some time.

So What Does A Square Foot Cost in Hoboken?

The average price per square foot of a Hoboken condo has risen along with the average sales price. Here are the visuals:

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  1. Dave

    The flat price/sq. foot over the past three years would imply that the average Hoboken condo buyer who purchased during or since 2Q05 is currently underwater relative to renting when factoring in one-time entry and eventual exit costs, such as closing costs and realtor commissions. People fail to realize that it’s better to preserve liquidity and mobility unless one can weather a full real estate cycle. Especially in an economic environment like this one…

    The older generation got it right: Buy a conservative house in a nice community, live in it for 30 years (thereby locking in 1972’s cost of housing), and retire without the burden of mortgage payments. Every time I hear one of my friends say “I don’t want to throw away money on rent”, I have to think that sentiment comes courtesy of another generation who cared more about building a future than granite countertops, stainless steel appliances, and the bragging rights of home ownership.

  2. Lori

    Dave –
    I’ve been involved in several situations where a client of mine who purchased around 2004 to 2005 has now decided to sell. The average buyer lives in a home for something like 5 to 7 years. Perhaps the population in Hoboken is more transient than average and time horizons are often shorter than that. You are correct that taking transaction costs into account they are going to likely be in the red. I have to respectfully disagree with the rest, however, as I’ve seen some of these owners keep the property and rent them out while enjoying the tax benefits of ownership. I also think that the mortgage interest deduction is the largest tax benefit the ‘average Joe’ enjoys and shelters quite a bit of earned income from Uncle Sam. While home ownership probably not something one does to be able to brag, there is, in my opinion, a substantial difference between renting a place and owning one’s own home. Having seen thousands of properties in 25+ years, I am convinced that home owners take care of their property and are very willing to make improvement not just to their homes but also to their communities.
    – Lori

  3. Granite

    Very interesting post you wrote. Glad I have stumbled upon it. Cheers!

  4. Lori Turoff

    Great, Granite. Glad you found it helpful. Please keep reading!
    – Lori

  5. Loan Mods

    A fantastic read….very literate and informative. Many thanks….where is your RSS button ?

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