2008 Oct 28th

Are Bargain Hunters Shopping for Hoboken Condos?

Some Hoboken Condos May Be Cheap Enough To Buy Now

The Wall Street Journal today had an article stating that low prices on condos & homes have started to spur sales in some parts of the country.  A quarterly survey of housing data in 28 metro areas shows the glut of unsold homes is shrinking in most of them.  Some of these properties are being bought by investors seeking rental units.  Others may be home buyers who are seeing deals too good to be true and prices low enough to finally motivate buyers to take action.

How Does The Hoboken Condo Market Compare?

According to the article, inventory in Manhattan was up 34.6% from a year ago.  The NJ suburbs were down 3%.  The figures were taken from the MLS at the end of June.  I don’t have numbers for Hoboken but there can be no doubt that Hoboken condo inventory is up from a year ago.  Hoboken condo inventory is probably more in line with Manhattan than the ‘burbs.

The other interesting number in the article was “months supply” (or absorption rate for those of you who have been following along).  In Manhattan it’s 6.3 months.  In the NJ suburbs, 11.2 months.  So while Manhattan may have had a greater increase in inventory, sales are still brisker than in outlying areas.  There is currently a 7.87 month supply of Hoboken condos on the MLS.

Finally, median sales prices in Manhattan were down 7.7% over last year.  The median sales price for Hoboken condos listed on the MLS was $485,000 September 2007.  It was up to $489,000 as of the end of this September.

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  1. FAP

    There aren’t many, if any, bargains in Hoboken right now. That’s why supply is growing at a staggering rate. Sellers don’t want to come down off their price and buyer would be insane to pay the 2007 premium.

    When you factor in the shock of the 47% tax increase, layoffs in Hoboken’s biggest industries, very low bonuses this year, severance package money running out next year, MEW being at near nothing, and now credit card companies refusing to finance people’s lifestyles, all of this indicates to me the dam is near breaking, and not in sellers favor.

    Supply will only come down if prices come down. And when looking at the factors I listed earlier the number of “motivated” sellers will only grow.

  2. DK

    Hoboken prices are still not affordable to people making 6 figures. Taxes are ridiculous. even if I can pay cash for the property I will end up paying over thousand a month just to live in my own apartment.
    Sellers are still in denial and asking around 600/per sq. foot.
    I say with all the mess that is coming in the next 4-6 months with private equity firms failing and taking real businesses with them ,plus arm-mortgages resetting and creating new foreclosure wave, Hoboken will be at 400sq foot at no time.

  3. Lori Turoff

    Not all sellers are asking $600 per sq ft. I’ve seen some very nice units out there in the 400’s. I think what you have to keep in mind is that part of Hoboken’s growth was driven by the general housing market rise but some of it had to do with the changes that took place in the neighborhood over the last 10 years, making it a much more attractive place to live than it had been in the past. Do we have problems with taxes and our budget – of course. Maybe if more of the new home owners had bothered to vote in the past two local elections things might have been different. I sincerely hope they make the effort to vote next time around. Even if they say “well I’m not planning to stay in Hoboken for long so I really don’t care about city government” that has now come back to hit them in their pocketbook. Please vote!

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