2009 Jun 17th

The Weekly Wednesday Wrap Up – Hoboken Condo Sales and Activity for the Week of June 17th

The Best Hoboken Condos Sell

What struck me this week in compiling these numbers is that the units that closed were all very nice condos and most of them sold without any price reductions from the original list price and at about 5% off asking!  The only property that required price reductions to get it sold was still a nice unit, just not in a great neighborhood.  So as I’ve said before, the good stuff sells – and when it is priced right it sells quickly and close to asking.  I’ve seen too many serious buyers waiting on the sidelines only to jump in to make an offer on a property by which time it’s to late.

Looking at what went under contract, though, shows that there were still plenty of overpriced units out there and it took significant markdowns to bring about some action.  Finally, contrary to my prediction, inventory dropped and we did not cross the 600 unit mark.  Enjoy!

Hoboken Condos Activity Holds Steady

 

Studio & 1 Bedroom Hoboken Condos:

6 new listings.  Average list price $472,316.

199  total active – $418,169 average asking price. 100 average DOM.  Average asking price = $574 / sq ft.

8  dabos after 75 average Days On Market (DOM).

2 sold Sold for an average of $412,500 in an average of 37 days.  Average sales price = $469 / sq ft. 

9 price reductions.

Two Bedroom Hoboken Condos:

17 new listings – average list price $600,284.

310 total active –  $611,683 average asking price.  108 average DOM so far.  Average asking price = $516 / sq ft.

9  dabo’d.   110 average DOM

4 sold – $606,750 average price.   Average 111 DOM.  Average sales price = $468 / sq. ft.

 20 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.

4 new listings.  Average list price $1,179,725.

1 dabod. 115 DOM.

1 sold.  $617,500 sales price in 50 days.  $475 / sq ft.  Another beautiful unit in a desirable building that sold without price cuts.

7 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.   As always thanks for reading and we welcome your comments!

  1. Tiger

    patk14, one of the BEST tips I got when I joined Club KO’s 10 week challenge was brown bagging. Granted I travel a lot for work, but in the few days I’m commuting I have a quick breakfast at home and brownbag lunch and snacks. It is very healthy, and is also budget friendly even if you shop at Whole Foods or Kings.

    Katherine, so glad to hear your story, I like your point about spending time together; makes all the difference for your kids and you can’t put a pricetag on that! And I agree with patk14, your husband is lucky! Do you have a single sister :-)?

  2. TS

    JC:
    I wouldn’t bring up good news, many people here don’t like to hear it and usually resort to name-calling when you refuse to concede to their (now-proven-to-be-wrong) claims.

    Andy:
    Banks will pay up those people who are producers, whether in trading sales or whatever role, in order to retain them. There is a lot of movement going on among the higher ranks between banks so they’ll need to protect themselves. It makes absolutely no sense – especially not for shareholders – to pay up those who are easily substitutable.

  3. Andy

    TS, unfortunately we in Mid/back office are subject to the bonus “Pool”(which is kiddie size at best) and almost never get the retention bonuses that we hear so much about. I got told that times are tough and no bonus for me last year. That was 25% of my income gone in a flash. I am just glad I was smart and never counted my bonus as income and bought my house based on my base salary alone.

  4. jc

    Andy – what % of bonuses are in cash vs. Stock? Thnx

  5. potentialbuyer

    Katherine,

    Congrats on the new purchase. I think it’s great to know that there is still family out there that still make it work in the expensive NYC metro.

    I guess I just can’t see myself in that shoe. I’m more like Patk14 now in terms of food spending so my clamp down scenerio didn’t make much sense in a fruggle family’s budget. In all honestly, I couldn’t even see myself with any condo/house higher than 500k with a profile like your. With a family, I most likely will move away from NYC metro area and take a pay cut in order to be with my family more.

    JC, I did see that article about GS. I think a lot of it have to do with their powerful position in the market now. While they are not the sole liquidity provider, their presence can be felt more so than ever before.

    Regarding housing, I think the same as before, I will buy when I’m ready. None of those 0% down or 3.5% down like the FHA loan make any sense when it was popular and it makes even less sense now that the market prove all the misconceptions wrong. Just remember, 1% interest equals 10% in price in a 30 year loan (close enough). Both numbers have been pretty volatile lately that we shouldn’t be playing that game like people playing the stock market.

  6. Andy

    Depends on your title and pay levels. VPs usually get something like 50% cash 50% stock(vesting over 3-5 yrs)but some places have an even higher % of stock. I was lucky when I used to work for a HF a few yrs ago. all bonuses for everyone at the firm were 100% cash. But like I said not getting one last year at all sucked. You have to feel a little sorry for those people who got stock over the past few years and watched the value of it sink into the toilet and know that they couldn’t sell it because of vesting requirements. They got doubly screwed. The big traders/sales people will make out fine but the support people got clobbered pretty good.

  7. Bill

    For the IB I used to work for, you would start getting stock over a fixed $$ amount, i believe it was 10% of bonus is your bonus was 50k or more (pre crash)

    so if your bonus was 75k, you would get 7.5k in stock and 67.5 in cash.

    I think the 10% ramps up pretty quickly as bonus goes into 6 figures

  8. TS

    Andy,
    I’ve never heard of a VP level getting 50% stock but I guess it depends on the bank. Most top out at 50% and that’s reserved for MD’s who make 7-figure bonuses. Typical for someone getting, say, a 500k bonus from what I’ve seen is 30% stock. But again, I’m sure it varies.

    Also, people can always hedge their stock while they wait for it to vest. Not that people actually did it, but clearly they should think about it from now on.

  9. Matt

    Any thoughts on the proposed $15k tax credit for a new home purchase, with no income limit?

  10. Tiger

    Matt, I think this tax credit is like putting a badaid on a bullet wound. They already tried with the homeowner tax credit act, TWICE, and none of that worked, at least not as expected. What’s the point?

    I can think of a few dozen things they need to be spending money on rather than lame tax credits

  11. bz

    Matt—Here’s an article about this proposal: http://moneyfeatures.blogs.money.cnn.com/2009/06/16/senator-wants-to-sweeten-home-buyer-tax-credit/
    I think it’s a good idea, not great. It will for sure spur the demand and help drain some of the inventory. Most people that oppose it come from two walks: one feels that they, just bought their homes in 2007-8, missed boat; and the other one that thinks it’s not fair for taxpayers to pay the bill. But to me, missed-the-boaters have to calm down from the time-the-market mentality; and the folks that foot the bill of this $15k proposal just have to admit that when the boat is sinking, you need to do something to save the boat. Otherwise, you come done with the boat.
    Hope that it will be passed and more homes will be sold quick.

  12. Recent Buyer

    re: 15K credit: Great for Hoboken because the 8K credit is not an incentive for those purchasing in Hoboken (due to the income limitations). But, I hear it only applies to multi-family units? ie: not condos?

  13. JC

    Regarding that DB article about 40% declines….samuel miller (possible #1 appraiser in NYC) came out on his blog and questioned the methodology and reliability for this 40% decline.

    “The market area covered was NYC, Long Island, Fairfield and Westchester, Northern NJ and 1 PA county. The 3 big national reports are the data source but FHFA and CSI exclude co-ops and condos, which are a significant portion of NYC housing units and NAR is light on co-op data.”

    He did say we still have a way to go on the correction.

  14. potentialbuyer

    bz,

    I’m in the camp that don’t think it’s a good idea but not in either of the groups that you mentioned.

    Like Tiger said, we need to spend money on the things that matter and not increase the load any more with things that don’t work. All the proposal does is subsidize the seller while doing absolutely nothing in regards to bringing the market into an equilibrium.

    Also, if they were to do it at all, it should be limited (whether to first time buyer or certain income) as it could really get out of hand. Our government’s budget is already in the gutters, we don’t need more needless spending like that.

    To keep the boat from sinking, we need to create real jobs by using projects and by innovating.

  15. bz

    potentialbuyer – I agree with most you have said. But this proposal isn’t endless spending. It’s temperary, as far as I understand it. Increasing jobs is altimately the right solution but it takes years to get millions of people back on track. Tax credit, historically, is a patch work that at most acts as a short-term solution. I think it’s working. a couple of my friends have decided to take advantage of this year’s $8000 and buy condos in Hoboken. I actually recommended this blog and Lori for them to start with. They were completely on the sideline until this $8000 is on the table. Again, I don’t think the proposal is great, but it works in a quick fix. Reducing the inventory might be one of the most important triggers for the market to start getting back to the equilibrium. It’s just what I think. I don’t have a better idea and I haven’t seen a better idea yet.

Leave a Reply

Copyright © 2008 Hoboken Real Estate News     Login     Sitemap