2008 Dec 3rd

The Weekly Wednesday Wrap Up – December 3rd

By Lori Turoff

Yet Another Week With Little Activity In The Hoboken Condo Market

As of this minute there are a whopping 516 Hoboken condo units active. While there haven’t been many new listings, there have been even fewer sales. Price reductions are becoming the norm. Inventory continues to build. Where it will end, nobody knows.

Studio & 1 Bedroom Hoboken Condos:

2 sold in an average of 23 days at an average sale price of $572,500

1 under contract this week in an average of 77 days.

Note – Only properties with price drops are listed. The others went under contract or were sold at their original asking price. From this you can see how far sellers had to drop the price to get some action.

168 total active with an average asking price of $481,796 with 9 price changes.

5 new listings with an average list price of $439,400

Two Bedroom Hoboken Condos:

2 2BRs sold in an average of 139 days at an average sale price of $415,250

Original list prices:

717 Adams listed at $439,900 in June reduced to $419,900

209 Adams listed at $449,000 in March reduced to $429,000

1 2BR under contract this week in an average of 98 days.

68 active 2 BR condos up to $500,000

224 active 2BR condos over $500,000

The combined average asking price of all 291 active 2BR condos is $653,905 with 14 price changes.

3 new 2BR listings with an average list price of $657,666

Three Bedroom and Larger Hoboken Condos:

None under contract

None sold this week.

57 active 3BR condos for sale with an average asking price of $985,420 with 3 price changes.

1 new listings with a list price of $859,000

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  1. FAP

    I feel sort of bad posting this here because this site is a FANTASTIC resource for someone like myself who wants to buy in Hoboken and what I’m about to say isn’t pro-hoboken condo sales. Fell free to kill this post if you think it best or it doesn’t fit with the site.

    The 47% tax hike has effectively reduced the value of every unit in Hoboken by a MINIMUM 8% by my calcs. Money spent on this large increase is going to come from somewhere and as condo fees and interest rates won’t move because of the tax hike mortgage principle is the only thing left to balance out mortgage payments. However as most Realtors are quoting 2007 tax rates, you know they would update if the taxes had gone down, many buyers don’t realize they have to update their what-can-I_afford calculations.

    Also only now are people feeling the hike. Many of those that do are hoping it’s temporary. Let me tell you the state overseer says this is the tax level we can expect to see for the immediate future, I take that to be the next year definitely and likely the next two to three years.

    All that before you factor in the economy.

    I’m a potential buyer who is on the sidelines until I see prices adjust to the new tax regime and NYC metro economic situation. By that I mean 2002 to 2004 prices adjusted by inflation + 1% yearly and then adjusted down to compensate for higher taxes. As always well located units, those with special amenities, or those with 3+ bedrooms will trade at a premium.

    That’s just my take
    -Forde Prigot

  2. Lori

    Forde
    You are entitled to your opinion and as long as you express it respectfully and it is about real estate I am happy for your participation and would never delete your post. An open, honest exchange of ideas benefits us all. There is no question that Hoboken taxes and the entire budget is a disaster. I hope our citizens wake up and vote for someone other than the current administration that got us into this mess over the years.

    I do have one comment about how taxes are quoted on mls listings – they come from the tax records. Unfortunately, those records have always reflected the prior year’s number. We don’t really know what the number will be going forward since they told us the increase was only for 2 quarters but I don’t believe that. ANYONE buying in Hoboken who isn’t bright enough to ask to see the most recent tax bills deserves what they get. I have seen some sellers volunteer that information by providing the bills – but they are quite impossible to understand (of course).

    Thanks for your comment and I hope you will continue to enjoy my site – please help spread the word.
    – Lori

  3. dkzzzz

    Here is my story about Hoboken RE market. I live on Grand Street, 10 minutes walk from Path . I rent. My landlord (probably a flipper) put our unit on the market about 3 weeks ago. We have people coming (rarely) looking for about 3 minutes and going their way. Apartment is renovated to granite countertops-stainless steel appliances levels (GCSS-which is a joke in itself).
    Granite tops are misaligned and already came off about 1/2 inch from the wall (installation quality).
    Cherry wood cabinets without handles. Electrical work that left a hole size of a watermelon behind one of the cabinets and was providing extra ventilation that I had to plug with a sheet of cardboard to prevent heat loss.
    Cherry wood floors laid on top of old floors (whatever they are) and thus the whole floor is crooked and slanted so that tall furniture (bookshelves/wardrobe)look like leaning towers of Pizza.
    Central AC took tons of space from already small apartment, including full closet in which they had stuffed the boiler instead of placing it in a basement. A/C is not zoned neither is heat . I have to use window AC because central A/C is not efficient at all even with a bedroom duct fully open.
    Bathroom is builder-standard junk. Bathtub is plastic too and already leaking. I have a question: Who the hell needs a plastic bathtub in their house? People with dogs? Am I to assume that Hoboken residents like to take relaxing bubble-baths right next to their toilets? :)Why not built a decent shower instead of junky plastic tub(because it is built to flip)?
    Basement is unfinished and smells to high heaven when you enter the tiny lobby. It could have housed all appliances and boilers but flippers decided not to invest in a basement rehab thus it offers no storage or any utility but provides moldy stench to the residents. Common areas (staircases) were not renovated at all.
    So this gorgeous place , which is marketed as renovated condo is listed at 349,000….lol
    Did I mention that the plan and listing states it is 700sq.feet when in fact measured by hand with all closets and bathroom it is not even 600sq feet.
    IMHO, the only reason we had this crazy price increase in Hoboken is because people were paying Other People’s money for these properties. 105% financing in hopes of flipping it in 2 years for gigantic profit to other people with 105% financing.
    Well I certainly hope that reality is back and I hope it is sobering.
    Nowadays when people are asked to plunk down 60-100K of their own savings to buy apartment they become somewhat more choosy about what they buy. I hope it lasts. Unless of course government steps in again to correct this “Problem” and “Saves” US homebuyer with more 105% loans.
    sorry for the rant.

  4. JC

    Lori…if only 4 condos sold this week and this weakness continues your post below will dramatically change. Can we be looking at 25 sales per month for December? That would bring inventory to over a years worth. I know this month the world froze up but the chances we head back up to even 100 sales per month is slim unless mortage rates go down to 4.5%

    “Right now, there are about 519 Hoboken condo units for sale. At the rate of 142 sales per month, it would take 3.6 months for the current condo inventory in Hoboken to sell out. If we omit the abnormally high month of March from the average, the absorption rate would still be 3.9″

  5. Lori

    JC
    I stand corrected – I picked up the wrong number. The average number of sales per month has been 67, not 142. So the correct absorption rate is more like 7.75 months worth of inventory, which makes much more sense. I’m going to go back into the post and change it right now. My bad. As far as what’s happening now, I couldn’t agree with you more that at 25 per month even with listings down a bit, we’ve got way too much inventory on hand. Thanks for picking up on that!
    – Lori

  6. stan

    as an aside, your site and the information on it Lori is top notch.

    dkzzz- your place sounds great…..love to checdk it out for some laughs.

    unfortunately, the lower fire price sales will become the norm, I actually don’t see these people as giving anything away, I see them as ahead of the curve and getting out from under their holdings. If you wan’t your place to move, it has to be one of the most competitive places on the market…

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