2009 Jan 28th

The Weekly Wednesday Wrap-Up: Hoboken Condo Sales and Inventory for Week Ending January 28th.

Research, analysis & post by Lori Turoff

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Where is Hoboken condo inventory headed?  Up, up, up.

The thing that really jumped out at me today is the average number of days properties are sitting on the market unsold.  This number used to be in the double digits.  Now it’s well over 100 for all size condo properties.  In fact, the average number of days that ALL currently active Hoboken condos have been on the market is 128.  That is astounding.

I guess the good news is that a Case-Shiller report came out yesterday showing that home prices are still plummeting in most of the country with drops in the 30% range but declined by only 8 % in the New York metropolitan area.  Denver and Dallas fared the best with 4% declines.  The New York Times has a very cool interactive chart that shows you results by city.
If you are in the market for a Hoboken condo, don’t forget to check our Hoboken Open House Google Map on Friday, Saturday & Sunday to see if any of the new listings (or old ones) are having open houses this weekend.

Here is the overall picture of Hoboken condo market activity for the past week:

Once again, inventory continues to increase despite price cuts.

Studio & 1 Bedroom Hoboken Condos:

 171 total active – average asking price $466,806.  DOM 103

No Dabos 

Note – If there were intermediate price reductions for a property to be “dabo’d” (placed under contract) or sold, they are noted here.  You can check what all the others sold for by clicking the link to the listings.  Each listing states the list price (LP) and the sales price (SP).

2 sold in an average of 127 days for an average price of $620,000

 4 price changes

9 new listings – average list price $480,612.

Two Bedroom Hoboken Condos:

282 total active – average asking price $667,718.    DOM 140 so far.

4 dabos – after 105 days on the market on average (“DOM”)

Intermediate Price Changes:

 3 sales – average price of $498,500.  DOM 66.

19 price changes

10 new 2BR listings – average list price $628,290.

Three Bedroom and Larger Hoboken Condos:

 54 active 3BR condos – average asking price $1,141,663.  DOM 147!!!

No dabos. 

1 sale after 184 DOM for $950,000.  Listed at $1,115,000 in July; reduced to $1,110,000 in Nov.

 3 price changes

 2 new 3BR listing – average list price of $1,024,000.

Where Do We Go From Here?

If things continue along these lines, we’re going to have some pretty serious inventory of unsold condos in Hoboken.  I guess the think to keep in mind is that it could be worse.  How long do you think it might take for a recovery here in Hoboken?

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  1. FAP

    I would say there is a direct correlation on the small size of Hoboken’s price reduction to the large increase of days on the market.

    The market is screaming at the sellers and until they listen their unit will continue to sit on the market.

  2. Tiger

    Thanks Lori. I wonder is there a way to see the units that withdraw from the market? FAP’s comment made me think of something. If sellers **really** want to sell, why aren’t they lowering their prices further? I’m no expert, but it seems to me to be a case of ‘if I don’t get this price, then It’s not worth moving’ or ‘if I don’t get this price, I might as well rent it’.

    Putting developers aside (cause obviously they want to sell), I wonder how many condo owners truly need to sell.

  3. Lori Turoff

    I think FAP hit the nail on the head – sellers are in denial. Many real estate agents are also to blame as they will do anything to get a listing – so when the seller says he wants to list at an inflated price, the agent agrees figuring they can lower it after the contract is signed. It’s a vicious circle. Who wants to be the agent to tell the seller that they have their head in the sand?

    Tiger – I can include withdrawn and expired listings. I’ll add it on later. I’ll just do one group for all sized because this exercise is pretty labor intensive but you’ll be able to click on the link to see them individually.

    I don’t think sellers say “if I don’t get my price I’ll just rent” unless they bought a long time ago and intend to rent the unit to a tenant. Most sellers are afraid to be a landlord, especially if they are moving out of town. Many do say “if I don’t get my price I’ll just wait it out”. They don’t realize that it is a dumb strategy in terms of actually getting an offer for their property.

  4. Tiger

    Thanks Lori, if it’s too much hassle please don’t do it! I’m just curious.

    I guess this is Hoboken, it does seem to reward or at least preserve the ‘no commitment’ lifestyle. The way I see it in other parts of the country people HAVE to sell; growing family, job transfer. Here in Hoboken, putting aside people who have been here for generations, how many of the new condo owners are ‘power singles’? How many are young couples with no kids? How many are couples with a toddler or two? Now is a tough time but the NYC area still remains as the most dense when it comes to jobs. So really, I wonder how many sellers are willing to sell. It sucks though cause that eventually drives prices down further, a slow market is no good news for anyone.

  5. Katherine

    Lori, how accurate is the data you are pulling from the MLS? I am in contract to purchase a 3BR (you showed it going into contract a couple of weeks ago, but I know it is DABOed because my deposit check cleared about a week ago). Could there be a glitch in the system or else do the listing agents sometimes not update the data? I am also selling my 2BR unit, and that one is DABOed as well.

    I am concerned that if the two sales I am personally involved with are not reflected in your data, there may be others that are not showing up and therefore the data looks much worse than it actually is.

  6. Lori Turoff

    Katherine – the data is as good as we’ve got. Every MLS board operates differently in various ways. I understand there are some boards, in California for example, that make reams of data and analysis available to it’s members. The theory is that it is in the consumer (buyer/sellers’)interest to provide information rather than try to shelter or own it which has been the traditional mind set. Once Trulia.com and Zillow.com came onto the scene, things started to change since they were putting the info out there to the public.

    So here’s the problem. When a property goes under contract, the agent is supposed to change the status right away. I believe within 24 hours is the rule. But there is not really anyone responsible for tracking or enforcement of this rule, at least as far as I can tell. I’ve seen properties be dabo’d on the same day they close. That means some agent didn’t do their job. Fortunately, this happens only in a very small minority of instances but it does happen.

    You’re question regarding your specific properties is a bit confusing. You say I showed the first “going into contract a couple of weeks ago”. Well, then it was dabo’d already. I don’t post every dabo every week, just the new ones. Your unit was posted the week it was dabo’d. It will show up on my report again when and if it closes and the status is changed to “sold”.

    Does this help?

  7. Katherine

    Sorry, I thought there was a difference between going into contract and then DABO. Also, I think the problem with my 2BR is that I am selling it directly (I had multiple offers within a week of listing it with the MLS) so I don’t think the status has been updated. Will the sale will show up on the MLS? We are scheduled to close on Monday, but I have noticed my listing is still active on realtor.com.

  8. Lori Turoff

    DABO means “deposit accepted by owner” which is the deposit the buyer gives the seller when the contract is out of attorney review and therefore binding. Sorry if that wasn’t clear.

    I’m not sure what you mean by selling it directly – if it’s on the MLS it can’t be a ‘for sale by owner’ so you must have listed it with some sort of agency. There are discount brokerages that you can pay to do nothing more than list your property. They provide no services. Perhaps that is what you mean?

  9. Katherine

    I had it written into my MLS contract that I had the right to sell my unit directly. The two offers I received both came from a craigslist posting, and they happened within 30 days of my initial listing (I did list on the MLS in early December using a discount brokerage but then pulled that listing after I signed a contract with Liberty Realty).

    I was just concerned because I have not seen my 2BR listed as DABOed on your site and wasn’t sure if it is because it is still active on the MLS.

  10. bz

    I’m not sure if I should post it here, but I think it might bring attention to peopel who are currently reading this blog. Here’s an article about America’s 5 Highest Property Taxes. NJ takes top 3 spots: http://finance.yahoo.com/real-estate/article/106483/America's-Highest-Property-Taxes

  11. Lori Turoff

    bz – no problem. You are welcome to post that here.
    – Lori

  12. Ari

    And 16 out of the top 25 in the entire United States! Welcome to NJ, where every town, no matter how small, has their Police Dept, Fire Dept, Municipal buildings, school districts, etc…. That’s a whole lot people on the payroll with their hand in the cookie jar!

  13. Lori Turoff

    At the risk of being repetitive, Ari’s comment is yet another reason why property owners in this town need to take an interest in local politics. The apathy has got to end. The taxpayers have got to stand together. We’ve got school board and mayoral elections coming up very soon. Time for a change!

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