2009 Jun 10th

The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Inventory for the Week of June 10th

The 600 Mark Can’t Be Far Off and Hoboken Still Has No Mayor

As inventory continues to increase at a slow but steady pace, I predict we will see 600 active Hoboken Condo units in the next few days.  Price reductions continue apace.  Sales continue to happen very slowly.  It is interesting that about half the properties that are sold or go under contract at their original list price while the other half require a string of significant price reductions first. 

From what I can tell, it seems like the election was so close (and the turnout very low) that unless one of the candidates concedes it will go to court for a final decision. 

Hoboken Condos Activity Holds Steady

  • 590 active Hoboken condo units today – 578  last week.
  •  55 price reductions vs. 41 a week ago
  • 8 dabos (under contract) vs. 8 last week
  • 9 sold vs. 19 last week.
  • 43 new listings vs. 43 last week
  • 6 expired listings vs. 13 last week
  • None vs. 11 last week

 

Studio & 1 Bedroom Hoboken Condos:

12 new listings.  Average list price $418,620.

205  total active – $415,153 average asking price. 95 average DOM.  Average asking price = $572 / sq ft. 

3  dabos after 133 DOM.

  • 812 Grand first listed at $452K on Oct 7;  reduced to $445K on March 20.

2 sold  Sold for an average of $376,000 in an average of 47 days.  Average sales price = $456 / sq ft.

  • 369 1st St. originally listed at $420K on Jan 5;  reduced to $399K on Feb 8;  sold for $370K.

13 price reductions.

Two Bedroom Hoboken Condos:

21 new listings – average list price $573,871.

316 total active –  $612,320 average asking price.  106 average DOM so far.  Average asking price = $516 / sq ft.

9  dabo’d.   88 average DOM

  • 159 14th St first listed at $399K on Nov 3;  reduced to $384K on Jan 16;  $365K on Feb 23;  $349.9K on Apr 15.
  • 610 Newark listed at $485K on Feb 2;  reduced to $469K on Mar 30;  $449,999 on May 1.
  • 1315 Washington listed at $$559,888 on Apr 8;  reduced to $539,888 on May 13;  $525K on May 22.
  • 1425 Garden (Garden St. Lofts) listed at $875K on Sept 12;  reduced to $799K on Feb 12;  $719K on Apr 24. 

7 sold – $713,999 average price.   Average 74 DOM.  Average sales price = $650 / sq. ft.

28 price reductions.

Three Bedroom and Larger Hoboken Condos:

68  active 3BR condos – $887,260 average asking price.  113 DOM so far.  Average asking price = $506 / sq ft. 

8 new listings.  Average list price $777,150.

None dabod.

None sold.

14 price reductions.

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.

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  1. Tiger

    Thanks Lori! I guess the trend remains the same…

    As for Mayoral elections, I am definitely disappointed with the low turn out, though it is slightly higher than the original election. It amazes me how people would give up a right to vote here, while other nations are still spilling blood, sweat and tears to get something like that.

    That said, things are looking good. If Zimmer wins it’s going to be ideal! but even if she retains her council seat, we have the majority on the council! Her entire slate won, plus Mason, plus herself. Hopefully they will keep Pete in check.

  2. patk14

    I’m a bear on real estate but I have to admit I saw a couple of interesting condos newly listed this week. It seems that some of the sellers are becoming more realistic about their initial offering prices (by the way, the 2 most interesting were represented by Lori). I’m even contemplating running the numbers on one of them which goes against all my instincts.

    I voted yesterday morning at around 7:30AM at 4th and Garden. I was absolutely shocked how few people were there voting. Sure, there was a light rain but please. Seems many people didn’t see a clear difference between the 2 candidates.

  3. homeboken

    Using the 2009 YTD closed numbers, and averaging January-May, I get an average of 36 closings per month. Current inventory = 590.

    There is a 16.4 month inventory of condos in Hoboken. This number is also growing each month. I have been reviewing lots of for sale and for rent units, and I don’t think that reality has sunk in yet.

    I am going to make a prediction (no crystal ball, just for fun). I predict 700 + active listings by December 2009.

  4. homeboken

    Disclaimers – I know the above doesn’t take into account seasonality etc. But just a quick back of the envelope while I devour lunch.

  5. Attorney & Recent Buyer

    As a recent buyer (closing in July), all this doom and gloom from you all on this website scares the hell out of me!!!

  6. WorldBFree

    If PC holds up..it will probably delay my buying decision (at least in hoboken, maybe I’ll look elsewhere now)from 2010 to 2011…giving me more time to see how this plays out but without significant changes (that would hurt the people I see adamantly supporting him) I see this town getting in worse and worse financial shape…although it will be interesting to see how the council dynamic plays out

  7. homeboken

    Recent Buyer – Don’t let the public commentary affect you at all. If you found a place you can call home, and paid a price you feel comfortable with, then you are all set.

    Congrats on your purchase.

  8. andy

    its like everything going on with all consumer markets at the moment, people will hold tight until they absolutely need to make a decision. You will have the speculators waiting for the bottom to buy for investment and the “on the fence” sellers testing the waters. The unfortunate thing (or maybe just reality) is that the genuine buyers/sellers are getting caught in the middle not knowing what to do because the market is flooded with people just checking out prices (both sellers and buyers). There is no doubt that with this amount of inventory prices will continue to fall until something really picks up in terms of positive consumer sentiment. Where is the bottom, who knows, wait too long buy on the way up, buy too early miss the bottom..inventory says bottom is another six months away at least, just a random guess….and no way will half of the current inventory sell unless people tidy up their condos and/or the quality of their pictures online…

  9. stan

    as everyone has pointed out here, getting the municipal/school budget under control in addition to a proprty revaluation that is fair, has to be a focal point of any new administration.

    the state monitor has been good because she doesnt play politics, she has just been cutting waste. I hope the new council can get it done.

  10. Lori

    I think everyone has made some valid points here today but I do have to chime in on one item – people keep mentioning sellers who “test the waters” in selling their units. I truly don’t think there is that much of that. It is too burdonsome to keep your place perfectly neat and have people traipsing through it at all hours of the day and night just for kicks. I think 99% of sellers really want to sell but they are unrealistic about price and how long it will take in today’s market. They also don’t focus enough on the connection between those two things. If you want a fast sale you’ve got to be priced aggressively low today. The constant price reductions often do more harm than good. So maybe they are testing the waters in the sense that they are seeing if they might get a higher price than they were advised by their agent. Instead they end up chasing the market while their unit gets stale.

  11. dkzzzz

    homeboken;

    I agree. Buying continuously depreciating asset, so that you can call it home is priceless.

    In other news New Jersey cancelled all property-tax rebates for home owners, except seniors.

  12. homeboken

    dkzzzz – I think you and I are in the same camp with regards to being first time buyers, waiting for a good deal. Thankfully, that is where our similarities end

    The personal purchase decisions made by the rest of the world are outside of my control. So I don’t spend to much time worrying about them. Everything in life comes down to personal perspective and choice. If someone decides to purchase a home, good for them, doesn’t affect me in the slightest.

    I think you would benefit tremendously if you focused your energy on making the best possible decisions for YOU. Critiquing the decisions made by others is classic loser behavior. You’d be better off if you avoided that type of thinking.

  13. potential_buyer

    DKZZ – I hadn’t heard about the cancellation of the property-tax rebate issue, could you post a link for information purposes?

    I tend to err on the side of doom/gloom on today’s market in Hoboken. Too much inventory, too high of a run-up in prices, and that bubble is still deflating, with what I believe may be an additional 15% decrease downward. With interest rates just being jacked up (see my earlier post to which no-one responded) and unemployment still rising (granted, the rate has slowed), I am thinking that things still need to get uglier, which is unfortunate as I am primed to buy these days…

    Regarding buying a depreciating asset – I guess it all depends upon how that asses is viewed by the recent purchaser. Yeah, reading this blog may not help you sleep any better at night if one is concerned with a “paper loss”…

    Lori – again, my hats off to you for providing an excellent forum for the exchanging of ideas.

  14. Tiger

    Attorney and Recent buyer, don’t mind them. There are always people with doom and gloom stories.

    Look at the archives on this very blog six months ago or so, A LOT of people predicted a total collapse in the area. Granted prices did drop, we are no where near a collapse. And yes, the issues are still out there; unemployment, taxes, and an array of things, but things ARE MUCH BETTER than what everyone expected.

    It is your choice, it is your life, if you feel you had a good deal, if you feel that you found a home, then go for it.

    Compared to last year, my net worth did drop, but I am a much happier person now with my new condo.

  15. Attorney & Recent Buyer

    I am definitely very happy that I bought. I think we got a great deal and we love our (soon to be) new home. Also, not sure how many of you are actively speaking w/ mortgage brokers, but I was offered 4.875% two weeks ago, didn’t lock in (regrettably), and last week, when I finally did lock in, I was offered 5.5%. This week, I was offered 6.25% from a broker who got back to me too late. Just wanted to share…the rates are definitely going up, so if you’re looking to buy by this December, I would not keep waiting.

  16. JC

    I think i-rates will come back down and the market is overshooting in the short term as it has done in the past. Although the anticipation of rates rising may cause a flurry of purcahses who were on the fence, especially since you need to close by november (i think) to get the $8k credit. However, once rates go up to over 6% for good (2010?) the action will again slow and have a negative effect. Rates going up is a function of economic health so while this may not be great news for housing it would mean folks have jobs, equities are up, the world is healing…all good for housing. Two sides to everything.

    Thing is 6% is still extremely low historically speaking but compared to 4.875% only two weeks ago its dissapointing.

  17. dkzzzz

    Principal always trumps the interest rate, especially if principal keeps going down.
    The main thing are taxes they are not going to go away or be lowered any time soon. According to NPR radio 50% to 60% of counties budgets are RE taxes.
    I think that 20% down payments that banks require currently from potential buyers will be total loss within one year.
    2-br, 1000sq.feet apartments are rented right now for $1700 to $2500.
    Buying the same apartment would be roughly the same mortgage payment plus tax plus condo fee plus 20% down payment plus no rebate.
    Interest rates seem like a very low incentive to me at the moment.

  18. Attorney & Recent Buyer

    I guess only time will tell. Sub 5% rates are not coming back, IMO. I bought a 2BR, and with 10% down, plus MI, condo fees and taxes, my mortgage is estimated to be $2700 – not bad…I can’t rent it for that, but it was worth it to us after 15 years of renting.

  19. JC

    attorney & recent buyer: $2700 after tax benefits or is 2700 your monthly nut?

  20. Attorney & Recent Buyer

    No tax benefits in that number. We don’t qualify for the $8K credit though, but are looking forward to the deductions – this is the primary reason we bought – we got married last september and were killed w/ taxes…

  21. Tiger

    JC, believe me, no one who can afford to buy in Hoboken can benefit from the $8K tax credit. So I don’t think anyone is ‘rushing’ to take advantage of it.

    “The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return”

  22. Attorney & Recent Buyer

    Tiger: Isn’t that amazing…can’t take advantage of the student loan interest deduction either…even though I have 130k+ in student loans, so my seemingly “high” income is equivalent to that of a school teacher when one considers the cost of living in NY/NJ and the loan payments. It’s quite unfair.

    Wish this was told to me while I was racking up this debt in school!

  23. Andy

    I’m w/ Tiger, things aren’t so bad in Hoboken w/ regards to real estate. We don’t have a foreclosure on every block and people aren’t leaving in droves. I bought in early 2008 but got what I thought to be a steal at that point in time. Yes prices have gone down but I’m happy living in my building. I have great neighbors and a solid condo association. We can weather the storm for many years to come. So long as people still want to live in Hoboken prices will go back up eventually. Might take 10+ years to do so but I sincerely doubt we’ll see things trend much lower(I’m not talking about the still overpriced units not selling. I’m talking about those units that are actually moving each month).

  24. lori

    I’m with Andy. PS – we’ve never been busier working with buyers than right now. I think there is a combination of sentiment: prices are down, interest rates are low, there is much inventory to choose from and no pressure on buyers to make decisions on the spot as was the case a few years ago. Sometimes I wish there were a little more pressure ; )

    Having lived through the Carter administration days of 20% interest rates, I find it mildly amusing when people complain about 6%. That is nothing compared to recent history!

    I’m happy to hear buyers say that they enjoy living in their new homes and don’t regret their purchase decision. People too often forget that your home is more than a portfolio asset. You should derive real personal satisfaction from it that has nothing to do with money.

  25. Willy

    The Best And Worst Cities For Recession Recovery
    Joshua Zumbrun, 06.10.09, 10:00 AM ET
    Forbes.com

    “New York City, too, once the capital of finance, is now saddled with Wall Street-induced unemployment and homes that are completely unaffordable for most of the region’s residents. The NAHB’s Housing Opportunity Index reports that only 14% of homes in the New York-White Plains-Wayne area are affordable on the area’s median income–by far the least affordable region measured by NAHB.”

  26. TS

    Maybe a section or thread should be opened where people can copy and paste articles without contributing their own thoughts.

  27. lori

    I’d be happy to do that TS. I’ll call it something like the “bulletin board” but the posts have to go in the comments and I’ll publish anything as long as the its are real estate related.

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