2009 May 6th

The Weekly Wednesday Wrap-Up: Hoboken Condo Sales & Activity for the Week of May 6th.

THE SINGLE MOST IMPORTANT FACTOR AFFECTING HOBOKEN REAL ESTATE:

If you care about Hoboken and your property value you simply must go out and vote next Tuesday, May 12th! There is plenty of information available at hoboken411.com, at the individual candidates websites and at lowerhobokentaxes.com for you to educate yourselves. Keep in mind that just because you vote for a particular mayoral candidate you DO NOT have to vote for that candidate’s slate.  You can vote for which ever council people you like.  People have been enthused about a turnout of 6,000 for the recent board of ed. elections.  In a city with 45,000+ that is not much to brag about! Every city worker and person who stands to gain from the status quo you can be sure will be going to the polls.  It is time for the property owners (present & future) to do the same. Who wins this election matters in many very important ways, not the least of which is the attractiveness of Hoboken to future buyers. So please, find the time and VOTE!

Here are this weeks stats:

  • 576 active Hoboken condo units today – same number as last week.
  • 57  price reductions vs. 45 a week ago
  • 12 dabos (under contract) vs. 7 last week
  • 11  sold vs. 11 last week.
  • 39 new listings vs. 50 last week
  • 14 expired listings vs. 1 last week
  • none withdrawn vs. none last week

Studio & 1 Bedroom Hoboken Condos:

203  total active – $420,900 average asking price.  87 average DOM.

5 dabos after 30 DOM.

2 sold $400,000 average price.  93 average DOM.

  • 551 Observer Highway – Listed 10/28/08 for $489,000.  Reduced to $449,000 on 12/11/08.  Sold 4/30/09 for $425,000.

18 new listings – average list price $402,077.

19 price reductions.

Two Bedroom Hoboken Condos:

313 total active –  $637,453 average asking price. 107 DOM so far.

4 dabo’d.  84 average DOM

  • 530 Madison – Listed on 1/23/09 for $515,000.  Dropped to $497,000 on 2/28/09.  Dropped to $475,000 on 3/27/09.  Dropped to $459,000 on 4/9/09.
  • 1500 Garden – Listed for $1,167,995 on 1/4/09.  Dropped to $999,995 on 1/26/09.

7 sold – $543,928 average price.   Average 52 DOM.

  • 264 5th – Listed on 10/15/08 for $749,000.  Dropped to $725,000 on 12/4/08.  Dropped to $699,000 on 12/13/08.  Dropped to $669,000 on 3/2/09.  Sold on 5/3/09 for $625,000.
  • 224 Hudson – Listed on 12/22/08 for $594,900.  Dropped to $584,900 on 1/9/09.  Dropped to $554,900 on 2/2/09.  Dropped to $539,000 on 2/24/09.  Sold for $522,000 on 5/1/09.
  • 84 Adams – Listed on 2/2/09 for $515,000.  Dropped to $499,000 on 3/2/09.  Sold on 5/1/09 for $485,000.

18 new listings – average list price $689,155

28 price reductions.

Three Bedroom and Larger Hoboken Condos:

61 active 3BR condos –  $900,693 average asking price.   110 DOM so far.

3 dabos.  148 average DOM.

  • 109 Grand  – Listed on 10/29/08 for $1,550,000.  Dropped to $1,499,000 on 11/14/09.  Dropped to $1,399,000 on 1/28/09.  Dropped to $1,299,000 on 2/13/09.  Dropped to $1,250,000 on 3/4/09.  Dropped to $1,199,000 on 4/9/09.

2  sold. $687,500 Average price.  98 average DOM.

  • 2 Constitution Ct. – Listed on 1/14/09 for $1,149,900.  Dropped to $999,875 on 2/25/09.  Dropped to $965,000 on 4/3/09.  Sold for $925,000 on 5/4/09.

10  price reductions

3 new listings – average list price $826,000

Hoboken Condo Open Houses

If you are in the market for a Hoboken condo, our Hoboken Open House Google Map is your single best source for locating 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.  Thanks for reading!

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  1. Clive

    Voting is important.

    I don’t know how long most readers have lived in town but a cancer that we had hoped was gone is creeping back. The Russos lead by former mayor Anthony Russo who went to prison for Bribe taking and extortion and his son Michael are angling to take control of the city council though Beth Mason’s ticket.

    Vote for who you want for mayor though I think zimmer is the best break from the past but don’t vote for the mason slate unless you want to see more no-work city jobs, filled by russo friends, and the higher taxes need to pay those salaries.

  2. stan

    Re: Hobo election.

    Interseting breaking ‘news’ on Cammarano @ hoboken411….

  3. calvin

    Back to the RE market…i just found out that only two buildings in Hoboken are FHA approved. Is this true? I hear you can get FHA spot approval, but there is only a 30% chance of success. Any thoughts? Lori? If this is true, it now makes sense to me why there are so many units. Most people out there are first time buyers – 20% down is quite a feat for first time buyers.

  4. Nicole

    Calvin, it is true that only two buildings in Hoboken are FHA approved, one of which is Adams Square (there are quite a few units for sale there). You can get spot approval, which is actually what my boyfriend and I are going to try to do when we finally find a condo we like. I’ve sat down with a few mortgage brokers and a few real estate agents to discuss this. This is the consensus: spot approval is entirely contigent on the building itself. if you are looking at a building with 10+ units, good financials, established condo association, developer doesn’t own any units, and it’s at least 75% owner-occupied, then I hear you are in good shape. BUT, if the unit you like is in a building with less than 10 units, it’s more like only a 50-50 chance it will get approved. If the developer holds any of the units, it’s highly unlikely. It there are too many renters, again, highly unlikely. There are a lot of variables, from my understanding, and it makes being a first time homebuyer very difficult. In fact, in some respects, it makes me long for the days of piggy back loans!

  5. Mark

    Calvin: I closed last Friday using FHA and the spot approval completed without problems. There are 16 units in my building.

    Clive: I agree that Zimmer is the best option out of the 3 candidates, so I encourage everyone to vote for Zimmer.

  6. calvin

    Mark: Who applied for the spot approval? You? Lender? Developer? Condo Association?

  7. Ron

    I believe the lender works with the condo association to get the approval

  8. Al Bern

    look at comp:

    $925,000 sold: 2 Constitution Court 2256 sq ft $15,454 pa taxes, $952 pm maintenance; on river

    $1,199,00 offer: 109 Grand St: 2480 sq ft; $24,865 pa taxes; $721 pm maintenance (2 car parking incl)

    Feels like Clinton should be about the same no? a 23% drop from offer..

  9. Mark

    Calvin: Ron is correct (reg FHA spot approval)

  10. TS

    Al,

    Those are two very different buildings you’re comparing. There is no point in arguing which one should be worth what. We’ll wait to see where 109 Grand sold.

  11. Al Bern

    TS,

    hmm…isn’t that true of evry building? what good are comps at all? 109 grand hasn’t sold…it won’t until sellers get realistic

  12. Al Bern

    610 clinton is another one…that is a silly price!

  13. TS

    Al,

    Yes, it’s true of every building but in different degree. These buildings are at opposite ends of the town. If you want comps I’d look at some of the other buildings along 1st St closer to the PATH.

    Also, 109 Grand is under contract.

  14. Lori Turoff

    Comps mean comparable properties and real estate is all about location. In my opinion, you have to compare buildings in similar parts of town or at least similarly situated parts of town.

    Just because a seller is asking a given price does not mean the property will sell for that price or anything near it. If you remember, the unit mentioned at 2 Constitution had quite a price cut before it sold.

    Don’t forget to vote – polls are open 6am to 8pm on Tuesday.

  15. Al Bern

    TS – let see where 109 closes then, but note that 83 Monroe WAS OFFERED at ~$400 per sq ft and had a far better tax rate…

    If 109 buyer bid anyything close to the offer, they will lose their shirts….

    you gotta think 500/sq ft in that area in way rich….you can buy many apts at <300

  16. Lori Turoff

    Units near 1st and Clinton at under $300 a square foot? A fifth floor walk-up that hasn’t seen a repair in a while, maybe. The prices in high-end buildings (and 109 is one of the most high-end buildings in Hoboken in terms of finishes) go for at least $500 a square foot. Check your facts.

  17. homeboken

    I am trying to past a chart from another NJ based real estate web-site, so I hope it works.

    http://njrereport.com/images/bubblecomparo.gif

    The correlation between the previous real estate crash in 1998 and the current crash is very strong. The underlying data for the chart is the NY Metro area Case Shiller data.

    Now, as Lori always says, Nobody can predict the future. But all data available should be analyzed and factored into any transaction. If this chart is any indication then I would contend that the NY metro are is facing at least 12-18 months of steep declines and then several years of flat or nominal price changes.
    I welcome any comments that oppose this view, the exchange of ideas on this board is what makes it so valuable.

  18. TS

    Al,

    Ok, first you come here and say there is no way 109 Grand will sell. Then when it does go under contract, rather than admit perhaps you misvalued the property you say that the new buyer is deep underwater if he paid remotely near asking.

    There really is no winning with you, is there.

  19. Quick Question

    Quick questions: What does dabo’d mean?

    Thanks!

  20. Lori Turoff

    “DABO” means “Deposit Accepted By Owner”. After a contract is signed by buyer and seller, it is distributed to the respective parties’ attorneys for a minimum (statutory) 3 day review period, called ‘attorney review’. When both sides agree on all the final terms of the contract, attorney review end and the buyer pays a deposit into escrow for the benefit of the seller, typically about 10% of the purchase price. Once this happens, it is way more unlikely that the buyer will walk away from the deal since he or she has money on the table, so to speak, and is at risk of losing it. At that point, the property is no longer shown to other potential buyers and the status of the property is changed in the MLS system from “A” for Active to D for Dabo’d. There are still certain things that can occur, such as a bad home inspection problem or the buyer failing to get financing that can cause the deal to unwind even after the property is dabo’d. Until it actually closes, no deal is final.

  21. Quick Question

    Thanks!

  22. TS

    Homeboken,

    No respectable econometrician is going to make any forecasts from one prior time series.

  23. Al Bern

    TS,
    I don’t think I mis-valued it. I simply believe the corrections you see in rents need to be reflected in prices. one of the two places is mispriced (assuming the bid on 109 was somewhere near the offer)…given what’s available to rent and to buy, it seems 109 Grand was offered for a silly price.

    Just because someone overpaid for a place, doesn’t mean they were right…anyone who bought in 2005/6/7 is going to learn that the hard way. but congrats to the people who offloaded 109 Grand on the silly buyer…

  24. Al Bern

    TS…what do you think of the econometrics of the housing market of Hoboken? You don’t like Prof Shiller?

    other comp for 109 Grand is 89 Monroe! lets see how those two compare on the sale price. I say $400 sq ft is max right price for either when you factor in the tax differences/vs amenities/parking

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