2009 Aug 26th

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

Could it Be?

Hoboken condo inventory is moving in the right direction. The number of Hoboken condos for sale has not been as low as it is today since early February. We have gone from a high of almost 600 units in late June to just over 500 today – about a 15% decrease in Hoboken condos for sale. Today the NY Times reports that according to the Case-Shiller index, housing prices are rising in nearly all of the nation’s large cities. The National Association of Realtors reported strong gains in existing home sales for 4 consecutive months – something not seen since 5 years ago. From a purely experiential viewpoint, the market certainly seems to be busier to me. I’ve had 2 buyers be outbid for condos recently. I’m seeing Hoboken properties go into contract before my buyers have a chance to see them. Sure, there are still many overpriced units that need to come down or come off the market. Yes, the junk doesn’t move. But – I’m going to go out on a limb here – and I know it – but it’s my opinion, just my humble, personal opinion, that the bottom may be near. As a property owner, I certainly hope so

Here are this week’s numbers:

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Studio & 1 Bedroom Hoboken Condos:

9 new listings. Average list price $417,600 or $545 per sq. ft.

178 total active – $399,552 average asking price. 102 average DOM. Average asking price $567 per sq. ft.

2 dabos. 96 average DOM.

8 sold for an average price of $379,487 in 39 days.

2 price reductions.

Two Bedroom Hoboken Condos:

11 new listings – average list price $549,900 or $497 per sq. ft.

266 total active – $610,934 average asking price. 114 average DOM so far. Average asking price $508 per sq. ft.

7 dabo’d. 87 average DOM

8 sold – $547,088 average sales price Average 123 DOM.

10 price reductions.

Three Bedroom and Larger Hoboken Condos:

68 active 3BR condos – $ 919,685 average asking price. 110 DOM so far. Average asking price $511 per sq ft.

No new listings.

No Dabos.

1 sold for $725k in 85 days.

3 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. Like this report, to receive the map with the actual links, you will have to request it.

Want to Receive New Listings & Price Reductions Daily?

If you would like to be emailed the new listings and price reductions each weekday in either 1br, 2br or 3br categories just email us at info@hobokensbest.com letting us know which size(s) you would like and we’ll add you to the daily email list.
You can always contact us at 201 993 9500.
Thanks for reading and, as always, we welcome your comments!
  1. patk14

    I’m still astonished that with all that has happened in the real estate market in this country, that the government is supporting a 3.5% down payment mortgage. They are giving these buyers essentially a free option on their real estate purchase. Real estate goes up, it accrues to the owner. It continues to slide down, the owner walks (ruining his/her credit) and rents again.

    The net impact of this program is that it provides some level of artificial support for housing prices. Wouldn’t that 1st time homebuyer be better off if housing prices were allowed to fall to their “natural” level? Shouldn’t the people who were prudent, lived below their means, saved 20% (or god forbid, 30 or 40%) of the purchase price (thereby having a real stake in the property) be rewarded with lower prices? I guess it is the instant gratification generation who feels that they should be allowed to own right away without sacrificing lifestyle and socking away money for the down payment.

  2. Recent Buyer

    patk14 – i agree with you that the program adds to the inflated real estate prices we have to deal with today. however, do you know how long it would take these days to save that 20, 30, 40%?? again, we’re no longer entering the work force with the ability to save as much as other generations were able save. plain and simple. my friends whose parents paid for their schooling, weddings, and helped with down payments are the ONLY ones who saved 20% in any reasonable amount of time.

    like kathy says in her blog, with 2K in monthly loan payments, that’s already a mortgage!

  3. JC

    The question keeps coming up how these young professional right out of college can afford to buy. I would think many get help from their parents who most likely live in the area and have done well for themselves. The parents put the 20% down and the kids are responsible for the carrying costs. done.

  4. stan

    “however, do you know how long it would take these days to save that 20, 30, 40%?? again, we’re no longer entering the work force with the ability to save as much as other generations were able save.”

    herein lies the problem, that’s what corrections do. Bring prices back to affordability by conventional means.

    I do freely admit I did not foresee as much gov’t intervention as we have had. Which makes me wonder what happens when it stops? what will car sales be post clunkers?

    As an aside, in my opinion, the education bubble, subsidized by low interest loans is something that can’t continue at it’s current costs. Need the degrees to make more money but it swallows up the added salary for a long period of time.

    I should have been a plumber…

  5. Tiger

    Recent Buyer and Bz, I agree with you, reason I say most Hoboken buyers won’t benefit from it is because I’m basing it on the single guy or gal buying a 1 Bedroom or maybe a studio, isn’t this what an entry home is typically about? But I guess when talking about an unmarried couple, and using the lower income, then yea, I see someone qualifying for it. But the question is, can this person afford the mortgage on their own? No. So case remains that those who can afford the mortgage in Hoboken on a single income do not qualify for the credit.

    Hopefully my next purchase would be a dual income one 🙂

  6. Recent Buyer

    Stan – tell me about it…almost took a job out of college for $50K in 2001. decided to go to law school instead just to leave in 2005 with 150K in debt and not even double the income. doesn’t make fiscal sense…except if you end up at a large firm. (and willing to give up your life)

  7. Kathy Zucker

    The main problem I have with this discussion is that nobody is taking additional savings into account. I do not advocate buying unless your monthly payments are the same as you would pay to rent (see rent ratios of 18 or less).

    So if many couples have less than 20% down because they just haven’t had time to save (most people finish grad school in their late twenties), and then continue to save while paying down their mortgage and getting tax deductions for mortgage interest & property taxes, they will have enough cash to make up for lack of appreciation on their property. If they stay in their condo for 5 years then they will accrue enough equity to not have to bring any cash to the closing.

    This is why credit scores are an increasingly important part of the mortgage process these days. it’s a kind of honor system -people with high credit scores (over 750) basically never default on loans. That is why they are the ones qualifying for FHA loans.

  8. Lori Turoff

    Has law school really become that expensive? 150K in student loans? I did a JD and an MBA (sequentially) and while I was fortunate to be awarded scholarship money, had only 30K in loans when I graduated. I took a government public-service job for two years which now, I believe, gets you a deferral on paying your student loans back but didn’t back then. I then went to work for a Wall St. firm. The start-up and other bonuses and most of my first year salary went right to paying off my student loans. Top firms paid $130K in the 80’s plus at least 10 to 20k in bonuses to new associates. Investment banking salaries were even higher. Today I think it’s closer to $175 or 185k for first year associates right out of law school at the big NYC firms. I spent my second year at that firm saving for a down payment so I could buy a condo in NYC. Granted, that apartment cost about $215k so I needed only 40K as opposed to a buyer in Hoboken today who would need at least 60K for a 20% deposit. And yes, my family helped.

    Part of the problem today, in my opinion, is that there is no willingness to sacrifice anything at all by many recent grads. I sense that too many of them feel entitled to fancy dinners, expensive clothes, vacations and cars from day 1. Of course, peer pressure doesn’t help. Sometimes, though, one must take a longer view of things and say I will forgo spending $5000 on a trip to Hawaii or $1,000 for a Prada handbag and save that money so I can buy a home. I don’t see much of that mindset in talking to young people today. But then they weren’t raised by parents who lived through the depression and continued to count every penny ever after. That has it’s own set of problems!

    Once I paid off the student loans and bought my condo I left the big firm so I could have a life.

  9. Recent Buyer

    Lori – 10 – 15% (tops) of every graduating law school class goes on to make that kind of money! It’s not realistic to think that’s the norm. And that’s NY big law. NJ big law is more like 120K to start (still a great salary, but not 165K…)

    And yes, law school is that expensive. 50K per year if you’re not living at home with your parents.

    I only WISH the reason I didn’t have the 20% was bc my closet is full of prada handbags….

  10. Lori

    RB – aren’t they the ones who come to Hoboken so they can work in Manhattan? I can’t imagine that they can all afford to buy in Manhattan. That’s incredible that law schools get away with charging that kind of tuition. State schools too? Rutgers? I went to BU which has a reputation for being one of the most expensive schools in the US and I think tuition was about 15 or 20K in the 80’s. I went to the Dean after my first year and told him if they didn’t give me money for tuition I would have to transfer to St. John’s where I went undergrad and live at home. Fortunately, they paid up and I was able to stay although I worked selling bagels and the NY Times in the student lounge very morning and ate a lot of PB&J. I still buy my Prada on Canal St. : )

  11. Recent Buyer

    Randy – BU Law 2009 tuition and fees: $39,658 without boarding!

    And yes, I those kids may be coming to Hoboken to buy, for sure! But many also prefer to rent in swanky Chelsea than buy in Hoboken! When you’re billing 2400 hours, you tend to feel entitled to many things…I kinda understand it.

  12. Tiger

    LOL, that must be a Praaada Lori then 🙂

    I am with you though regarding spending habits. For me budgeting was learnt during my grad school days at Stevens, I lived in Hoboken for $1750 per month, before taxes. My parents offered to help but I refused, as I felt that they have done enough for me at that point. I used to rent a fourth floor walkup on washington with two roommates, shop at the Gap in Newport mall (the sales rack, that is) and basically consider a $20 bill a ‘night out’.

    I look at those times with complete fondness now / 2004 was the one of the best years of my life! those were the days!

    End of 2004 was when I joined the corporate world, not sure if that’s a good thing or not :-/

    I need a vacation!

  13. bz

    Recent Buyer – Agreed. I’m in my 30’s, have a Ph.D. 2001 and a MBA 2007. I didn’t realize how much debt your friends or a like take on. It needs years of heard work to pay off/break even. But as a long-term investment a JD might be worth the money. We took a different route. Most of my friends are in medical, IT, science, and accounting field. We all have at least a master. Higher education costs in these fields are relatively cheaper, most have well paid scholarships. That really makes a big difference, I guess.

  14. Looking

    Great site. Just spent two hours reading the site and comments! NAG – Just wanted to comment on the July 15th wrap up. I work with someone who bought in Hoboken and now I’m interested in doing the same. I’ve seen a few units and I personally would never buy at the Huntington. Not because I don’t like “those types of people”, but because it feels like a dormitory when you’re in there and the units are very cookie cutter (no character). So, it’s not my taste. Everyone is different. Your good deal may not be someone elses.

    Lori: Price wise, can you get units as big as the ones on Huntington for less in a smaller/older building? Do you pay a premium to live in these big buildings?

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