By Lori Turoff – [email protected]
Hoboken Condo Sales Are Up – Transactions Are Down
Lehman went under, B of A bought Merrill and AIG collapsed mid-September. Since then, things have continued to deteriorate. Here we are, about 2 months later, with some still predicting the demise of the Hoboken real estate market. Yet that’s not what the numbers show – at least so far. The most apparent change was that Hoboken condo sales practically came to a stand-still in November. There were only 36 condo sale closings for the month compared to the average of over 70 a month for the rest of this year. About half the usual deals simply did not take place. Yet the average sales price of a Hoboken condo increased to over $532,000 in November. That’s more than the average for the year of $530,000; more than last November’s $479K and more than November of ’06’s $493K. Here are the numbers (note – I flipped the months to make the chart easier to read):
Not only are sales prices up, days on market are down, price per square foot is up from last month although not as high as it was in September, and average list price is up from last month.
Did Hoboken Condo Sellers Have to Slash Prices to Get Buyers to Act?
There have been predictions that the price of Hoboken condos will plummet up to 30%. It’s interesting to see if sellers are getting their asking prices. The discount off the asking price shows up as almost 4% for November. I went back and looked at the original list price of each property rather than the most recent price (upon which the above chart is based). The result is indeed a bit different. Using the original asking price to calculate the discount off list causes it to rise to about 8%. So yes, some price reductions were required to get buyers to bite. Tomorrow I’ll post this months stats vs. prior years, so come back again for another look.