Research, analysis & post by Lori Turoff
Who is the April Fool?
I’ve written a lot in this space about sellers overpricing their units. Often, as noted below, it takes quite a few price changes before a unit sells. Nonetheless, we have a continuing build up of inventory. The ‘spring pick-up’ in the Hoboken housing market may be more psychological than real. Today I’d like to point out that buyers are often as unrealistic about what they believe they can purchase a Hoboken property for as sellers can be as to what they can sell it for – thus, the standoff. One of the most important things a buyer can do is learn to assess value. When the average sales price (not list price) for a Hoboken condo is over $500 a square foot, the buyer has to ask him or herself a few questions if they expect to pay below that:
- is this unit above average or below average?
- is the location above or below?
- are there comps that justify offering the price I’m thinking of offering or ultimately paying?
- what justifies paying a below average price for an above average unit?
All buyers want a bargain but sometimes the unit is priced property and were it to sell for a little (up to 5%) off asking, they would be getting a deal. Not every unit warrants a more than 20% discount off list. What I repeatedly see happening is buyers make offers that are simply too low and sellers just say no. Eventually, after losing out on a few good properties the buyer realizes that they are not being realistic about price. That’s why it is so important for buyers to look at lots and lots of units. The more a buyer sees, the better able they are to judge what a property is worth. Sure, there are bargains to be had on the overpriced units but not every unit is overpriced. The ones that are really nice and priced right continue to sell without price reductions and very close to asking price. While many sellers still won’t accept the reality of today’s market, sometimes the stand-off is the buyer’s doing.
Stay tuned for the March Hoboken condo sales results which will be posted very soon.
The Hoboken Condo Weekly Numbers
- 533 active Hoboken condo units today vs. 530 last week.
- 32 price reductions vs. 48 a week ago
- 8 dabos (under contract) vs. 8 last week
- 7 sold vs. 8 last week
- 24 new listings vs. 33 last week
- 10 expired listings vs. 7 last week
- 8 withdrawn listings vs. 12 last week
Studio & 1 Bedroom Hoboken Condos:
192 total active – $432,793 average asking price. 88 average DOM.
None under contract.
4 sold – $378,250 sales price. 172 DOM.
- 928 Garden listed for $459K in Oct.; reduced to $419K in Nov; Sold for $379K.
- 307 1st Street listed for $495K in Oct of ’08; reduced to 475 in June ’08; reduced to 409K in Feb. Sold for 405K.
2 more sold prior to this week but the sales were not reported to the MLS in a timely manner by the listing agents. Some agents don’t bother to change the status when their deal closes until weeks later despite the 24 hr. rule. Unfortunately, no one from the MLS bothers to check or enforce the rule. I will include the info but these sales are not included in the weekly averages for this week nor have I gone back to change the average numbers for the week in which they should have been included. Some, like 924 Jeff, closed on the 24th and get reported on the 25th so they really belong in last week’s totals. Others, like 418 Bloom below, closed weeks ago.
8 new listings – average list price $514,374.
Two Bedroom Hoboken Condos:
287 total active – average asking price $642,984. 113 DOM so far.
4 dabos – after an average of 68 DOM
- 1214 Washington listed at $400K in March, reduced to 385K.
- 1100 Adams listed at $575K in Jan, reduced to 565K in March.
- 1100 Adams listed at $632K in Jan, reduced to 619K in Feb.
3 sold – average sales price $535,000. Average DOM 97
2 sold but were reported late.
- 418 Bloomfield was listed for $489K in August and reduced bit by bit to 459K in Oct. Sold for 425K in Feb.
12 new 2BR listings – average list price $657,308.
Three Bedroom and Larger Hoboken Condos:
54 active 3BR condos – average asking price $982,274. 139 DOM so far.
None under contract.
3 new listings average list price $723,333.
Hoboken Condo Open Houses
If you are in the market for a Hoboken condo, our once again improved Hoboken Open House Google Map is your single best source for info on every open house in Hoboken. It’s posted on Friday every week. The info is updated weekly. If your google search seems to pull up an older version, click on the title link to get the most current map.