2010 Apr 21st

The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of April 21st

terrace

I attended a zoning board meeting last night, which was quite an informative experience. During the case before ours, there was a discussion about a small terrace on the front of the 5th floor of a new, luxury condo project under construction. The zoning board did not want the architect or owner to allow a deck or terrace on the setback or for the owners of this surely $500,000+ full floor unit to have access to it. One of my favorite moments was when one of the commissioners said his reason for objecting was that kids could throw bottles off it during the St. Patrick’s Day drunk fest. First of all, do you think the people who buy this place are that likely to have a SPD Party? Even if they did, couldn’t they just throw the bottles out their front window if that was how they get their jollies? Rather than ban the parade, or arrest the troublemakers,or otherwise address the real problems of that 1 day a year, the zoning commissioner’s solution is to deny the tax paying property owner an amenity that increases the value and enjoyment of his or her home for the other 364 days of the year.

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Hoboken Condos Sales & Activity – Week of April 21st.

Here are this weeks numbers vs. a week’s ago numbers:

Studio & 1 Bedroom Hoboken Condos:

19 new listings.

217 total active – $379,860 average asking price. Average 82 DOM.

11 dabo. Average 56 DOM

4 sold. Average price $283,000. DOM 83.

23 price reductions.

Two Bedroom Hoboken Condos:

37 new listings

271 total listings. Average list price $569,295. Average 71 DOM.

13 dabo’d. Average 94 DOM.

14 sold. Average price $504,964. Average DOM 71.

29 price reductions.

Three Bedroom and Larger Hoboken Condos:

5 new listings

69 active listings. Average price $809,054. Average 81 DOM.

1 dabo’d. Average 217 DOM

4 sold Average price $758,125. Average DOM 76.

6 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.

Want to Receive New Listings & Price Reductions Daily?

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Thanks for reading and, as always, we welcome your comments!

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  1. dogfood

    the expiring tax credit seems to help the sales a bit this week.

  2. Vivian

    It’s interesting to note that in the 1 bdr category, 3 out of 4 sold at 90% of original purchase price. Mine was one of these. In fact, it dabo’d quickly, but as there was a tenant occupying the unit, we needed to give her proper leave notice (60 days, of which she used only 45).

  3. homeboken

    Lots of activity this week. Lori do you have any general thoughs on the percentage difference in the bid/ask spreads? From the above DABO’s and closings, there still seems to be a trend of List at Y, reduce multiple times, then DABO somewhere between 5-10% below the final ask.

    Are Seller’s of new listings getting the message that pricing appropriately creates interest much faster than listing and wishing at some artificially high price?

  4. Vivian

    What I’m saying is that in the 1 bdr category, they DABO for 10% less than *original* ask.

    I was recently also a buyer. What a nightmare. I felt like many buyers were listing purposely low and wanted over their asking price. Wound up in 2 different bidding wars.

  5. lori

    I think if a property is priced correctly based on recent sales (not active units), and that is a big “if”, most are selling between 4 and 6% off asking. Many sellers are still dreaming.

  6. Craig

    Many sellers are still dreaming. But they wake up to the reality of the market sooner or later. My final purchase price on my unit was 12% off the original unrealistic list price and 4% off its final list price after 6 months on the market and several price reductions into the realm of reality. According to tax records, I paid $10k less than the seller did in 2004. That is about right, as Hoboken is at 2003-2004 pricing right now (well, except Maxwell, W, and Hudson Tea – they still think it’s 2006-2007 aparently).

  7. Craig

    Hey Lori, 711 Clinton #3C seems awfully cheap for how nice it appears to be – even for a short sale. $375k for newer construction 1100 Sq. ft., 2br/2ba, and elevator. What was the catch? I note it was sold “as is”, so I’m assuming they wrecked the place?

  8. homeboken

    Craig – Im not so sure about HTB being in 2006-2007 category, check out the unit that closed for $800,000.
    No location is immune.

    1500 Hudson Street #5h
    Last purchased 05/07/07 1,246,990

    closed last week for 800,000

    446,990 drop (35.8%) in 2 years. By the way, $800,00 is lower than the orignal Toll sale price.

  9. TS

    It was sold by a Trust, something you probably should have noted as these kinds of sales often don’t reflect the true market value.
    That said, I agree. Looking at what sold in the last 6 months at HTB resales, I believe they were about 10% off from the 2006 levels.

  10. homeboken

    TS – I did see that and I thought about noting that in my post, but why?

    A sale is a sale. If a short sale occurs, it is a comp, if an estate sale occurs, it is a comp.

    Same as if someone paid 50% over asking for Eli Manning’s place b/c they were a huge Giants fan would be a comp.

    You can’t cherry pick transactions, they all count.

  11. Confused

    The issue at 711 Clinton Street was mold in some of the apartments and ongoing litigation with the builder to replace the front facade and the flashing on the roof which caused the leaks / mold…or so I heard. Don’t have all the details but that’s what I heard.

  12. Lori Turoff

    As far what I’ve been told the supposed mold situation/litigation at The Belmont was remedied. If not, that would have to be disclosed and it wasn’t when my buyer made an offer on the property (which we did not pursue). The first problem is that it was a short sale in which the seller had not yet received bank approval, even if conditional. We didn’t know if there were any other liens on the property, etc. So many buyers who are buying and planning to live in the property don’t want to deal with all that uncertainty, especially with regard to the timing.

    The other issue with that particular unit is that it was not really a 2 bedroom. It is a 1 br with a den (no windows – internal room) and the den had the w/d in the closet which is an odd place. The place wasn’t “trashed” but it wasn’t in excellent condition and certainly could use some work – especially the kitchen cabinets which showed signs of wear. The rest was just paint, i.e., cheap to fix.

  13. Lori Turoff

    Oh, and as for sales by trusts or estates, I agree that that they often sell for less than market value. They don’t really count as a ‘comp’ in my mind because there is a reason why it sold lower than it should have – just as when a unit sells that has no parking but the other unit does – if the units can be distinguished they are not ‘comps’.

  14. stan

    Looks to me like the trust bought the place from toll in 2007 and was the one that sold it. At least that’s what we see from the tax records. If this is the case, whats the difference.

    As opposed to it moving in to the trust due to a death or disability etc.

  15. homeboken

    As a potential buyer, that would count as a comp in my mind.

  16. TS

    Homeboken,

    I’m not cherry-picking transactions arbitrarily. I’m singling out, or rather just flagging, ones that are sold by Trusts. The same would be done by a divorce sale, estate sales, and other such circumstances.

    According to your logic “a sale is a sale” no matter what it’s nature. Let’s say a condo is sold between family members – a parent to their child – for 50% of what they paid for it in a market that is not declining. You honestly want to say that’s a legitimate comp?

    If you don’t want to distinguish these kinds of sales from “regular” sales so be it, but in the end it’s you who will have inaccurate information.

  17. homeboken

    A family member sale at 50% off would not be a comp in my mind. But when an estate purchases at X then sells 3 years later at x – 35% it is a comp. If the condo was worth 850k, then someone would have offered that, the estate didn’t accept the lowest price, they took the highest, 800 was it.

  18. Lori

    The issue with estate sales is that they may not be a true ‘arms length’ transaction. I know of a Hoboken estate sale in which the estate attorney sold the property to the first seller to come along, who happened to be a neighbor of the deceased, and accepted a bid well below the market price. Similarly with short sales, I’ve seen banks approve transactions for well below the market price. If you think of comps as a bell curve, then these transactions are clearly the outliers – not the norm.

  19. TS

    Homeboken,

    I can’t speak to the specifics of this estate/trust sale, but as Lori says it is often the case they just take their first offer. Estate sales are known to be a source for great deals for a reason.

    As far as your comment that if the condo was worth 850k someone would have offered it, you don’t seem to recognize the fact that real estate is not a liquid asset. Sometimes you have to wait 3 months to 6 months to have that buyer come along to get fair price. Trusts are often impatient.

  20. homeboken

    TS – Valid points, and a few questions.

    Lori – was the estate sale listed on the MLS? If so, how many days on the market? Were there any price reductions from original list?

  21. carl

    started at 1,165,990

  22. homeboken

    carl – do you know how many days on market?

  23. Lori Turoff

    It was listed by Toll for quite some time, listed as a rental, withdrawn, relisted, relisted as a rental, and finally listed at $850,000 as a short sale “with additional conditions” so who knows what sort of obstacles needed to be overcome to be able to actually close on this property. I say you have to consider it an aberation, not the norm.

  24. Lori Turoff

    126 days at $850,000. First listed by Toll in January of 2007.

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