2009 May 27th

The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Inventory for the Week Ending May 26th.

Price Reduction on Hoboken Condos Gets them Sold

Once again, we see lots of inventory, many price reductions and few deals.  In order to get many of the deals done, substantial price reductions are needed.  Many sellers are still living in the past.  A bunch, however, have begun to price things right at the get go.  Note how many of the 2 bedroom units sold at their original asking price.  Next week we will be posting the end of May numbers.  It will be telling now that we are well into the Spring selling season.  The other good news is that things seem to be leveling out rather than going down.  That is always hopeful.  Thanks for waiting so long today – I’ve been playing catch up after a great week off.  Have a great evening!

 

Studio & 1 Bedroom Hoboken Condos:

198 total active – $417,425 average asking price. 94 average DOM.  Average asking price = $586 / sq ft.

1 dabos after 139 DOM.

3  sold  Sold for an average of $298,333 in an average of 49 Days.  Average sales price = $424 / sq ft.

  • 410 Jeff listed for $299K on Feb 1;  reduced to $289K on Feb 16;  $279K on March 31;  sold for $265K.
  • 358 6th Street listed for $348K on Jan 26;  reduced to $299K on Jan 26;  $269K on Feb 24;  sold for $265K.

13 new listings – average list price $428,967.   The lowest priced unit on a per square foot basis is 5 price reductions.

Two Bedroom Hoboken Condos:

312 total active – $629,698 average asking price. 108 DOM so far.  Average asking price = $845/ sq ft.  (Even without W hotel & very big Maxwell & Garden St. Loft units, average is still about $700 / sq ft.)

8 dabo’d.   76 average DOM

  • 813 Wash listed at $380K on March 30;  reduced to $365K on May 7.
  • 919 Park listed at $449K on March 20;  reduced to $435K on April 8.
  • 610 Newark listed at $550K on Feb 4;  reduced to $530K on March 12:  $500K on April 15;  $475K on May 13.
  • 518 Monroe listed at $530K on Feb 17;  reduced to $519K on April 9;  $514K on April 14;  $499K on May 7.
  • 1200 Grand listed at $575K on March 11;  reduced to $559K on May 1.
  • 2 Constitution listed at $665K on Dec. 5;  reduced to $650K on Jan 12;  $630K on March 11;  $600K on May 4.

9 sold – $534,833 average price.   Average 53 DOM.  Average sales price = $448 / sq. ft.  Compare this to the $800+ / sq ft. average asking price!

  • 703 Park listed for $499K on Jan 8;  reduced to $485K on Feb 9;  $460K on March 2;  sold for $433K.
  • 634 Park listed for $634.9K on Aug. 16;  reduced to $619K on Sept 17;  sold for $565K.

18 new listings – average list price $784,566.14 price reductions.

Three Bedroom and Larger Hoboken Condos:

65 active 3BR condos – $880,561 average asking price.  112 DOM so far.  Average asking price = $515 / sq ft.

None dabo’d

None sold

5 new listings – $938,380 average list price.

1 price reduction.

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. Leslie

    Laurie,

    Though I get it means “discounted”, what does dabos/ dabo’d stand for? Discounted at buyer’s order?

    BTW, met another chow/golden mix named “Honey” on Wash St this weekend. She is more blond and is she-dog-smaller than SemPi. But the owners were able to rattle off a slew of part-chow dogs they know of in Hoboken, adding Trinity to their list.

    Glad your vacation sounds like it went well,
    Leslie

  2. BL

    DABO means “under contract” (I had trouble with that acronymn too!) Not sure what the letters actually stand for though!

  3. Tiger

    Thanks Lori for the numbers! Like I said last week, they don’t look bad at all. Zillow mentioned that Hoboken is officially 9.1% down, based on recent tax data, that’s almost 13 – 14% off peak (I think)

    (DABO) Deposit Accepted By Owner, it usually means -and someone correct me if I’m wrong- that the initial attorney review is done, and owner got his deposit (typically 10% or so) and at this point the unit is very likely to get sold, unless the seller or buyer back out (possibly with legal implications).

    When I bought my condo, I was advised not to tell people about it until it was DABOed, just to be safe.

  4. Lori Turoff

    Tiger is correct – Dabo means that the initial deposit, usually 10% of the purchase price, has been paid to the seller. At this point it is highly unlikely that a buyer would walk away from the deal.

    I have some issues with Zillow. Read the fine print about where they get their numbers. They are not using actual sales figures – they use algorithims.

  5. buyer09

    What if you’re done with attorney review and the deposit it not due for another 10 days? Is it technically DABO’d? Can they keep showing the place and take other offers?

  6. Bill

    700 Bloom (MLS 90006422) was FSBO for 599k now listed with realtor for 575k

    Thats still a lot for 800sq ft (even with deck and parking)

    They did a great job rehabbing the place but probably over invested, doubt they will get a return on all the details (tray ceiling for example)

  7. Tiger

    Yea I agree about Zillow Lori, they create algorithms that adjust based on national / country / city averages, add to that the delay in tax record updates and you get something around 15% error margin (or so I heard), which is very high when talking about hundreds of thousands of dollars.

    Your stats, coming directly from the MLS, are far more thorough, accurate, and VERY informative (regardless of what the haters say!).

  8. Lori Turoff

    700 Bloom has a great garage but the unit itself is really a 1br. There is no real closet in the master bedroom. What should have been the closet they made into the 2nd “bedroom”. Also, last I heard from the owner at the FSBO open house the owners are taking with them all the nice cabinetry.

  9. frink

    Actually it is very easy to get out of the deal after DABO with a little thing called the home inspection report. Any detail from this report can be used to get a buyer’s money back if they are not satisfied with remediation. I had a painful pull back last year that I did everything in my power to remediate to no avail.

  10. Lori Turoff

    Frink – I don’t know that you are correct. While the standard form sales contract has a provision for the home inspection and requires there to be a cure of any deficiencies, backing out of a deal at this point the buyer could arguably be breach of contract. It would depend on the wording of the contract and how that language is interpreted – possibly by a court. A buyer should certainly discuss this with his or her attorney. In all the years I’ve been in the business it’s never happened in any of my deals. Furthermore, good agents require that the inspection be done during the attorney review period to avoid exactly this scenario.

  11. frink

    Perhaps it was my attorney, or my realtor, but both indicated I had no real recourse…I sure wouldn’t have wanted to go the court route (expense, time etc.) anyway, just wanted to move on to the next guy. Re: timing, my building issues required getting a consult from a Pro on the situation, which couldn’t be scheduled for a few weeks, attorney review was right away.

  12. Janice

    Owners can take away fixtures like cabinetry?! What else can be taken away? I’m a New Yorker looking into buying a 2B condo in Hoboken. Been there quite a few times, but the LPs still seem overinflated for now.

  13. Jamie

    If I’m taking a 10% hit from my original purchase price in 2006 for my current condo, I’m sure not going to pay above original purchase price for any condo in Hoboken. Waiting for sellers to start lowering their expectations, or quit the selling game altogether.

  14. lori

    Janice
    When a unit is listed there is a section for “exclusions” in which the owners can identify ANY item they wish to exclude from the sale. If nothing is identified, then typically things attached to the walls, like cabinets and shelving stay, while things not attached, like furniture and wall units go.

  15. Legal

    A couple of things:

    First – I’m real estate attorney. If a Buyer wants out of a contract because of the inspection report, it is very hard and likely a costly-waste-of-time to try and keep them in – no matter what the language in the provision states. The only saving grace would be if the Seller tried to cure ever little defect – as you know, many can be found. A judge would definitely rule in favor of the Buyer – b/c the provision is for their protection and they are lay people. Remember, there is also the mortgage contingency period 30-days out. In other words, “another way out”…. Lastly, the inspection rarely, if ever, gets done during attorney review, which is the first three days.

    Second, from a review of sales and listing, it seems that everything is still way (way) over priced. I purchased a condo recently in Hoboken and very happy. The Seller listed it 70-80K lower than similar condos, so we jumped on it and got under contract within a few days of it being listed.

    Advice – wait to Sellers become reasonable or make very low offers and stick to them. Also, never trust the realtor too much – remember, they make money only when you buy. I don’t care what comps are – something is only worth what someone is willing to pay for it.

  16. Lori Turoff

    As a lawyer myself, I hesitate to give legal advice in the abstract, especially using terms like “always” and “never”. Having clerked for a Federal judge I certainly wouldn’t say how a judge would definitely rule about anything!

    As a realtor, I often have inspections done during the attorney review period, which typically extends beyond the statutory 3 day period. It’s usually more like a week.

    Not everything is overpriced – as you yourself say since your unit was listed lower than others. There are good values. It depends on the individual property.

    Making very low offers is often a waste of time. Most sellers still hesitate to negotiate when an offer is too low in their opinion. As for trusting realtors – well, I guess it depends who is your realtor. There are bad lawyers, bad doctors, bad indian chiefs, too.

  17. Legal

    In response:

    First, as a practicing lawyer in NJ for a long time (and successful), I can tell you that no (none!) good lawyer is going to take a case regarding a Seller suing b/c a buyer canceled b/c of the inspection. These types of matters are not in federal court – try dealing with a Hudson county judge – they will toss it in a minute after the Seller pays all of those legal fees.

    Second, yes there are deals, I review the listings – but they are one in a hundred or so – at best! We got lucky, but that was months ago and we were diligent about new listings. These prices are just too high. As an owner, I want high prices, but these are crazy.

    Third, if Sellers don’t want to deal with lower offers then they do not want to sell. The offers are reasonable, not low.

    Fourth, I have had dealings with many a realtor and I know money drives everything in this world. For example, 100% of realtors will never say its a bad time to buy?!?

  18. frink

    My issues from Home Inspection which prompted my DABO to pull out weren’t even within my four walls, their Home Inspector found structural issues and other problems in the building basement…and more power to them. When I had my home inspection on the place, I couldn’t give a damn about it because the apartment was so nice.

    The buyers I eventually landed were presented with the results of the previous report up front. By then we had estimates on repair cost from the Pros my association and owners took their sweet ass time to decide on, and we priced these costs in to the sale. I am sure there are tons of the older buildings with similar problems, with all the water seeping up and pre-war foundations crumbling away. It’s a good lesson for buyers, send your home inspector everywhere to asses what could be big problems for you, even though it’s not within in your four walls.

  19. potential_buyer

    Did everyone notice that interest rates spiked yesterday? If interest rates begin to rise this soon, I fear Hoboken prices are going to be under even greater pressure to drop as fewer than the current scant buyers will be able to afford current prices. This rise in interest rates really opened up my eyes – as I said, this is much sooner than I expected. We will see how the gov reacts, but I imagine we will see some action soon if this continues…

  20. Andy

    I think rates will go back to being relatively low maybe a few bps higher than they are now for most of the rest of the year. But I think what we’re seeing now is that there are buyers out there w/ plenty of cash just sitting on the sidelines waiting. The unemployment figures are finally hitting bottom. Thats a big positive for the NY metro area. I’m not calling anything yet, but I think this fall may tell a much different picture than where we are now. Plus most of the speculators in Hoboken are long gone now.

  21. Attorney & Recent Buyer

    I just finished attorney review for my very own Hoboken condo (very excited!) and am a practicing attorney. I STRONGLY advise anyone (and everyone) to never, ever pay over a deposit until the inspection is done. In my contract, and all of the ones we do at my firm, we extend the deposit date to the date of the inspections. There is simply no other way to protect yourself. Yes, some judge will throw it out, but you’ll be paying attorneys fees and will be without your cash deposit until then…I’m living it now with a case we took where the seller is holding my client’s $10K deposit. One and a half years later, it’s still in litigation. Just my two cents. Buyers beware and negotiate that contract. Never be afraid to lose the place – which is what prompts ppl to hand over deposits so frantically.

    As for good deals, there are some out there – I feel we got one! 75K off what the buyer paid in 2005 and the unit was totally gut renovated by the seller. All we are doing is painting.

    I think finding the seller that NEEDS to sell is the key.

  22. Tiger

    Congratulations to you Attorney and Recent Buyer! You will LOVE having your own home, it is just a different feeling.

    I also was very tempted to put my 10% down asap, since I snatched a unit (before it even hit the MLS) from a flipper (we both had a good deal) and was worried that he might show it to someone else, but I didn’t. I resisted the urge until inspection and attorney reviews were DONE and I was happy.

    My agent was very good actually, he helped me kick off attorney review on Monday, inspection on Wednesday, and attorney review was completed by the following Monday (after my lawyer got the inspection report). The seller got the check Friday of that week.

    I started shopping for new furniture that weekend lol.

  23. Ari

    Attorney & Recent Buyer – congrats on your purchase. I don’t think there are that many sellers in Hoboken who NEED to sell their place. Just look at Lori’s recent note about the average $p/sq ft asking prices for 2bd with the actual prices of units that have sold.

    I’m curious, are you suggesting no deposit be made at all till the inspection is completed or just that the deposit be held in escrow? I’m an admitted novice at these things, but I can’t imagine most buyers are quick to get the inspection done (most people procrastinate) or that a seller would take his/her place off the market without knowing that the buyer has put his money where his mouth is.

  24. Lori Turoff

    Just to clarify – the deposit always goes into escrow. It is held in the seller’s attorney’s escrow account for the benefit of the seller.

    There is no reason why a buyer cannot do the inspection during the attorney review period. It will save time, aggravation and possibly legal fees for the buyer. If there is an issue both parties will know about it right away. If not, as Tiger did, the inspection is done, attorney review is complete and the deposit gets paid. Everyone is happy. In my opinion, that is the way to go.

    Finally, properties are usually ‘taken off the market’ once the offer is accepted an the property is in attorney review. This is up to the seller, however. If the seller wants to keep showing the property they can. If the seller wants other parties to know that there is an offer an acceptance, they can. If the seller wants to show for ‘back up offers only’ they can. A good buyer’s realtor, however, will include in the conditions of the contract that upon acceptance of the offer there will be no more showings. If the seller won’t agree, then ask for showings for back up only and that the parties be informed there is an accepted offer. These are all negotiable points. Often the buyer doesn’t pay the deposit until 10 days after the conclusion of attorney review. It all depends on what the parties agree to do.

  25. Attorney & Recent Buyer

    Do not hand over that deposit. That’s what I’m saying. My client’s deposit is also in escrow in the seller’s atty trust account. You adjust the contract to state that the deposit is due x days from attorney review – the same x days you have for inspection. The unit is technically “on the market” only until the contract is out of attorney review, not until you pay the deposit. You have a binding contract when the contract is out of attorney review.

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