Archive for August, 2008
Get Out and Ride - Bike Hoboken!
Categories: Crazy Ball, Hoboken Condos
A Bicycle May Just Be The Best Way To Get Around Hoboken
With gas prices and traffic always on the rise one of the best ways to get around Hoboken may be by bike. Personally, I ride my bike around Hoboken every day - to my office, to show properties, to the gym. Parking becomes a non-issue and it’s faster and easier on your feet than walking. Now there are real estate agencies using bicycles to take clients out looking at properties. Of course, the trend has started and caught on in Colorado. But given the urban environment of Hoboken, riding a bike may soon be the way to go here as well.
Some Common Road Blocks
My husband and I have been serious cyclists for years, as competitive triathletes and founders and directors of La Corsa Tours, a bike tour company that runs challenging bike tours in France, Spain & Italy. We rode regularly in Manhattan from the Village up to Central Park. To us, the traffic in Hoboken is not as intimidating as it was in the City. Of course, for less experienced cyclists and at times even for me, it can still be frightening. I was “doored” riding up Washington Street just the other evening.It’s very understandable that people are afraid to ride a bike in Hoboken. The situation may soon improve though, thanks to the efforts of local councilperson Dawn Zimmer and the “Bike Hoboken” group started by Juan Melli. They have been working to initiate a bike friendly plan for Hoboken. Better enforcement of traffic laws would certainly be a good place to start and there’s lots more to be done. Eventually Hoboken will become more walkable and friendlier to cyclists, because it has to. Hoboken just cannot accommodate more vehicular traffic. Stay tuned to sites like hoboken411.com for more upcoming Bike Hoboken events.
Why It Matters The For Hoboken Real Estate Market
Buyers are very concerned about their commute! How long, how far, how expensive it is to get to work are important factors they consider when purchasing a home or condo. Unquestionably, Hoboken has great transportation options for getting into Manhattan. Buyers also care about quality of life. Towns & cities are now being rated for their ‘walkability’ index . According to WalkScore.com, Hoboken rates an 89 out of 100. Manhattan is rated 100. Having a bike friendly neighborhood makes Hoboken a more appealing place to many people. A more appealing city means higher Hoboken property values. So think about it - get that old commuter bike out of storage and give it a try while the weather is still beautiful. And if you’d like to go out looking at properties by bike, just let me know.Have a safe Happy Labor Day Holiday!
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The Weekly Wednesday Wrap-Up - Hoboken Condo Sales & Market Activity for the w/e Aug. 27th
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis, Weekly Wednesday Wrap Up
Studio & 1 Bedroom Hoboken Condos:
2 sold in an average of 29 days at an average sale price of $289,950 View Sold 1BR Listings
6 under contract this week - View 1BR Dabo’d Listings
139 total active with an average asking price of $490,563
( 23 Week Supply selling at 6 per week since January 1)
6 new with an average asking price of $500,478 View New 1BR Listings
Two Bedroom Hoboken Condos:
10 sold in an average of 57 days at an average sale price of $545,717 View Sold 2br Listings
7 under contract this week - View 2BR Dabo’d Listings
258 total active with an average asking price of $689,628
( 31 week supply selling at 8.37 per week since January 1)
9 new listings - $700,875 - View New 2BR Listings
Three Bedroom and Larger Hoboken Condos:
None sold this week
1 under contract this week - View 3BR Dabo’d Listings
45 active 3BR condos for sale with an average asking price of $1,134,652
(41 week supply selling at 1.09 per week since January 1)
2 new with an average asking price of $1,134,652 - View New 3BR+ Listings
Also be sure to check out the 4 Bedroom penthouse duplex at 2 Constitution (The Shipyard) - pretty nice for a cool $4.3 mil.
Compare to last week: View Week Ending August 20th Here
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The 3 Worst Things About Overpriced Hoboken Condos
Categories: For Sellers, Hoboken Condos
Overpricing Hoboken Real Estate For Sale Hurts the Seller, Hurts the Buyer and Hurts the Agent
Over the next few days I’ll address the various problems that can arise by overpricing a condo or house that you intend to sell. Today’s post is addressed to sellers.
Many sellers think their property is worth more than it actually is. To them, it is not only ‘home-sweet-home’ filled with fond memories of happy times but is often their single largest asset and may have been their biggest investment ever. They want a return on their money and hope buyers will see the property through their own rosy lens. Unfortunately, selling real estate does not always work out that way.
Hoboken is Unique, Especially When it Comes to Real Estate
Sales prices in the Hoboken condo market have been almost flat since about 2005, which is quite positive compared to the rest of the US. Another unique feature of the Hoboken real estate market is that the average owner owns his or her property for less time than in other places. Hoboken buyers buy, live in a unit for a few years until they move to the ‘burbs or stay in Hoboken but need more space. So instead of holding onto their real estate for 7 to 10 years, they want to sell after 3 or 4. I’ve encountered many Hoboken condo owners who bought condos in Hoboken in 2004 and 2005. Now, 3 or 4 years later, after a job change, marriage, baby or what ever the circumstance may be, they want to sell that condo. Often, they not only want to cover the commission of a realtor but also want to make a profit. Making money on a real estate investment is certainly a reasonable goal. One has to look at the economic environment at the time one wishes to sell. If prices are dropping all over the country and they’ve been flat in Hoboken for the past few years, it’s no longer reasonable to think that if you bought a Hoboken condo in 2004 you are going to be able to sell it for a profit in 2008. If you are very lucky, you might break even.
Bad Real Estate Math
Nonetheless, Hoboken condo owners will say well, I paid $610,000 and with a 5% commission I need to charge $650,000 to clear $610,000 plus I would like to see at least a $10,000 gain so let’s ask for $660,000. Never mind that the comps show similar Hoboken condos actually selling for $580,000. Of course, there are agents who will list the condo at any price just to “get the listing”.
Overpriced Condos Are Like Day-Old Donuts
What happens to overpriced properties? They don’t sell. Often, they don’t even get seen by potential buyers. There is enough inventory of similar condos on the market at any given time that, in a sense, Hoboken condos become fungible. A buyer looking for a 1000 to 1200 square foot 2 bedroom condo around 9th Street will have multiple units from which to choose. When the vast majority of these condos are priced in the high $500,000’s there is little reason for a buyer to want to see the one priced at $660,000. They don’t need to. How much better could it possibly be to warrant an extra $50,000 to $100,000? There are many condos for sale in Hoboken that represent a good value. Those are the ones the buyers want to see.
Showings Lead To Offers Which Lead to Sales
No appointments - the listing agent has the meeting with the seller that goes something like this: “Well, Mr. Seller, we’ve done everything possible to market your property. We’ve got it featured on every conceivable web site, have held 37 open houses, ran ads, took photos, distributed flyers, and then some, yet we’ve had very few appointments other than the nosy neighbors coming to the open houses. It’s time to consider adjusting the price.” At this point, however, the unit has been listed on the MLS for maybe 3 months (or more). It’s become stale. The novelty is gone and the excitement among the agent community doesn’t exist. Agents don’t want to waste their time showing overpriced lisings! So the price gets dropped but seldom significantly enough to make a difference.
Relisting Your Hoboken Condo For Sale Usually Means an Even Lower Sale Price
The more typical scenario is that eventually the listing expires. Sometimes the owner will find a tenant and wait a while to sell. Having a tenant in a property you later intend to sell raises a whole other set of concerns, the subject of a follow-up post to this one. Sometimes, the property is relisted after the owner has moved out. Now that beautiful Hoboken condo is vacant rather than nicely furnished. All the scuffs on the walls show, the place echos, the refrigerator smells and the dust starts to accumulate. Not very appealing. The price comes down again.
Get Ready For A Fire Sale
Eventually, when the price gets low enough, someone will buy the property. At this point, it is a deal. The condo is often sold for significantly less than it could have been, and likely would have been, if it were priced correctly from the start. When your condo for sale is the best option for the money, the phone is going to ring off the hook. Not only will you typically have many appointments, you will often end up with multiple offers. Multiple offers mean you get to choose the best, highest and strongest among them; a good situation for a seller to be in today.
See Also: The Donut Story
Next - How overpriced listings hurt the buyer
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The Weekly Wednesday Wrap-Up - Hoboken Condo Sales & Market Activity for the w/e Aug. 20th
Categories: For Buyers, For Sellers, Hoboken Condos, Market Analysis
Some New Weekly Statistics on the Hoboken Real Estate Market
This week I’ve added to the active, sold, under contract and new listing information by including absorption rate. You’ll see it as “number of week’s supply” right under the total number of condos for sale in each size category. Hopefully, this will give you another way to analyze the Hoboken condo market and answer the always popular questions like: “How is the Hoboken real estate market doing?” and “Do you think it’s a good time to sell my condo” or “Is now a good time to buy a condo”. For example, you’ll see that one bedroom condos sell at a much better rate than two bedrooms condos. As always, I welcome your comments and questions.
Studio & 1 Bedroom Hoboken Condos:
6 sold in an average of 84 days at an average sale price of $480,117 View 1BR Hoboken SOLD Condos
6 under contract this week - View 1 BR Hoboken Condos UNDER CONTRACT This Week
147 total active with an average asking price of $480,117 View ALL 1BR Hoboken Condos for Sale
(24 Week Supply selling at 6.12 per week since January 1)
8 new with an average asking price of $356,411 -Click Here to View NEW LISTINGS of 1BR Hoboken Condos
Two Bedroom Hoboken Condos:
9 sold in an average of only 57 days at an average sale price of $686,499 View 2BR SOLD Hoboken Condos
9 under contract this week - View 2 BR Hoboken Condos UNDER CONTRACT This Week
10 new listings -
260 total active with an average asking price of $686,499 View ALL 2BR Hoboken Condos for Sale
(31 week supply selling at 8.41 per week since January 1)
13 new with an average asking price of $761,407 Click Here to View NEW LISTINGS of 2BR Hoboken Condos
Three Bedroom and Larger Hoboken Condos:
2 sold in an average of 80 days at an average sale price of $860,000 View 3BR SOLD Hoboken Condos
None under contract this week
45 active 3BR condos for sale with an average asking price of $1,055,741 View ALL 3BR Hoboken Condos for Sale
(40 week supply selling at 1.12 per week since January 1)
2 new with an average asking price of $715,450 View NEW LISTINGS of 3BR Hoboken Condos
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Hoboken Condo vs. Downtown Jersey City Condo Absorption Rate
Categories: For Sellers, Hoboken Condos, Market Analysis
Absorption Rate For Hoboken & JC Condos
Absorption rate means how long it would take the real estate market to absorb all the properties for sale if they were to keep selling at the same rate as they have been. 
Hoboken Condos
Number of Hoboken condos for sale today: 460
Number of Hoboken condos sold since January 1, 2008: 527
Daily rate of condo sales: 2.34222
Monthly rate of condo sales: 71
Months it would take to sell all the Hoboken condos: 6 1/2 months
Downtown Jersey City Condos
Number of JC condos for sale today: 357
Number of JC condos sold since January 1, 2008: 278
Daily rate of condo sales: 1.23555
Monthly rate of condo sales: 38
Months it would take to sell all the Hoboken condos: 9 1/3 months
Who Cares?
If you’re thinking of selling your condo in the next 6 months, you should care! If your condo is in Hoboken, you are in pretty good shape. At the current absorption rate, almost all the condos on the market will sell in that time period so the chances are your condo will sell, too. If, however, it’s in downtown JC, about two thirds of the condos will sell and a third won’t. Your chances of selling in 6 months are not as good as in Hoboken.
Value of good marketing in Jersey City (and Hoboken): Priceless
See also:
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