The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of June 22nd
Categories: Neighborhoods, Weekly Wednesday Wrap Up
Hoboken Condos Sales & Activity – Week of June 22nd
Bad news for the housing market -Yesterday the NY Times said existing home sales hit a new low and reported that mortgage delays were part of the problem. Today, according to the Wall St. Journal , Commerce department data shows that new home sales have hit a record low in May, down 33% from April. The drop was predicted to be only 20%. This was the lowest sales figure since the government started keeping track in 1963. The FED will be issuing a policy statement this afternoon regarding its interest rate policy. Here in Hoboken, things stay the same.
In Hoboken we still have somewhere between 7 and 8 months of unsold condos on the market – which is better than a year ago. That’s based on a pretty consistent number of actives in the low 500’s and about 60 to 70 sales per month. Of course, if the expiration of the tax credit causes the number of sales to drop dramatically we could be back where we were previously with a year of unsold inventory on hand. When you look at what did sell in Hoboken this week, there weren’t very many price reductions. Some units went for over asking (727 Monroe, 618 Jeff, 501 9th, 101 Park).
Finally, there are two important meetings tonight regarding transportation in Hoboken.
A community meeting to discuss transportation issues and concerns tonight, Wednesday, from 7 to 9pm at the Jubilee Center, 601 Jackson Street. Director of Transportation and Parking Ian Sacs will discuss transportation issues including the Hop (formerly Crosstown shuttle), car-sharing, traffic in Southwest Hoboken, and more, and Mayor Dawn Zimmer will also attend to answer questions.
Also, an Open House on the Jersey City/Hoboken Subregional Transportation Study will take place from 4pm to 8pm at the Multi-Service Center, 124 Grand Street. Residents are invited drop in at any time to share their thoughts on improvements to the Southwest Hoboken area for drivers, bicyclists, pedestrians and transit users. More information is available at: http://www.jerseycityhobokenstudy.com
Here are this week’s numbers vs. last week:
- 539 active Hoboken condo units – vs. 538 last week
- 7 DABOs (Deposit Accepted By Owner i.e. under contract) with 0 short sale vs. 8 dabos
- 29 sold (0 short sales) vs. 24 (0 short sales)
- 37 new listings vs. 52
- 43 price reductions vs 43
- 7 expired listing vs. 10
Studio & 1 Bedroom Hoboken Condos:
16 new listings
203 total active
3 Dabos
- 1200 Grand listed at $429k on Mar 24; reduced to $419k on Mar 31; INCREASED to $429k on Apr 8.
- 1500 Garden listed at $660k on Jan 4; reduced to $625 on Jan 20; $595k on Feb 10; $575k on May 6.
- 1113 Willow listed at $290k on Apr 15; reduced to $275 on May 21; rented??? on June 9. If this unit was in fact rented the sale listing should have been withdrawn – not dabo’d.
10 Sold
- 706 Willow listed for $290k on Mar 26; sold for $280k.
- 618 Jeff listed for $369k on Apr 11; sold for $382.5k.
- 1016 Willow listed for $315k on Apr 5; sold for $310k.
- 812 Garden listed for $349k on Apr 5; sold for $349k.
- 151 2nd St. listed for $389k on Mar 19; sold for $375.
- 1200 Grand listed for $428k on Feb 18; reduced to $415k on Apr 5; sold for $399k
- 108 14th St. listed for $269k on Feb 23; sold for $258k.
- 70 Adams listed for $395k on Apr 14; sold for $375k.
- 501 9th St. listed for $440k on Mar 26; sold for $425.
- 417 Adams listed for $259k on Sep 28; reduced to $249k on Nov 17; $235k on Jan 21; $220k on Feb 24; sold for $206k.
12 price reductions
Two Bedroom Hoboken Condos:
16 new listings
277 total listings.
- 205 up to $600,000
- 72 $600,000 and over
4 Dabos
- 261 12th listed for $380k on May 13.
- 41 1st Street listed for $400k on Feb 10; reduced to $380 on Mar 23; $360k on May 11.
- 158 Newark listed for $550k on May 25
- 530 Madison listed for $659k on Apr 6; reduced to $645k on May 19; $639k on May 19 (no that’s not a typo).
16 sold
-
412 Wash listed for $549k on Mar 10; sold for $525k.
- 224 Hudson listed for $570k on Apr 17; sold for $552k.
- 933 Willow listed for $409k on Mar 18; reduced to $399k on Apr 22; sold for $387.5k.
- 727 Monroe listed for $550k on Apr 6; sold for $560k.
- 700 1st listed for $500k on Jan 26; reduced to $475k on Feb 26; sold for $455k.
- 501 9th St. listed for $445k on Jan 27; sold for $445k.
- 118 Bloom listed for $939k on Nov 3; sold for $880k.
- 800 Jackson listed for $405k on Apr 5; sold for $408k.
- 123 Jackson listed for $599k on Apr 22; reduced to $525k on Oct 22; increased to $565k on Oct 29; sold for $535k.
- 830 Monroe listed for $599k on Feb 28; reduced to $585k on Mar 16; $575k on Mar 30; $555k on Apr 27; sold for $525k.
- 82 Clinton listed at $570k on Mar 15; sold for $550k.
- 101 Park listed for $670k on Feb 25; sold for $684k.
- 122 Mad listed for $550k on Apr 1; sold for $550k.
- 109 Harrison listed for $749k on Mar 4; reduced to $700k on Apr 7; sold for $685k.
- 1023 Clinton listed for $539k on Mar 15; sold for $528k.
- 517 Adams listed for $739k on Oct 16; sold for $715k.
26 price reductions
Three Bedroom and Larger Hoboken Condos:
3 new listing
59 active listings.
no dabos
3 sold
- 822 Hudson listed for $1.15mil on Apr 7; sold for 1.06mil.
- 629 Jeff listed for $779k on Mar 17; sold for $765k.
- 200 Jackson listed for $640k on Mar 2; sold for $620k.
4 price reductions
Hoboken Condo Open Houses
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Thanks for reading and, as always, we welcome your comments!
Three of the last five weeks have been single digit in Dabos. What will MOI become with July data? Is that “Evidence” of any future price movements?
MOI?
months of inventory???
Shorts, how many DABOs occur each week has little bearing on interpeting weekly inventory levels. This is because properties that go under contract at the same time close at all different times, or sometimes not at all. A better indication of how fast inventory is moving is recorded sales. As you can see, there were 29 this of those this week.
As Lori noted, Hoboken has about a 7 month supply of condos on the market. This has been consistent for some time and is an improvement over last year’s inventory level. Consistent levels of inventory and sales over the past few months sounds like evidence of consistently flat price movement to me.
Lori – a question for you: there was a 3BR at 1022 Hudson in the listings that disappeared a couple weeks ago from your run, but didn’t show up in DABOs or withdrawns. I happened to walk by the other day and there’s a sale pending sign out front. My question is – what is the process for brokers to report into the MLS? Do all brokers do it the same (update within x timeframe, skip DABO, pull down listings, etc.)? How long is the typical delay between something happening and it being reflected in the MLS?
And out of curiosity, what happened to that specific listing??
Not surprised by the weak numbers/reports of the horrific real estate market..My comments a few months ago were directly on point ( altough you disagreed )in that the tax credit helped but simply just “masked” the poor market…
I see ABSOLUTELY no uptrend in RE values for at least a year, especially with no property tax relief in sight..
Question for you/Lori:
Why does an aggent like you choose to jump to a different Real Estate Office ( More than Once ) ?????
One of my biggest concerns as i have stated previously is indeed the tax situation as Lonnie mentions. Another 18 million bonded for a garage that the city once owned, 50+ million when the hospital goes bankrupt, and out of control police and fire costs in town. ( it really is amazing how many chiefs and so few indians there are).
That said I do like what the current mayor and admin are doing, shining more light so we see how screwed the situation has been. We’ll see if they can come up with somne cost savings over the next year with negotiations, budget mtgs etc.
@Lonnie – Each time we’ve moved it has been with an eye towards finding a better, more supportive work environment, and we believe we’ve found it at Century 21. With a competent, energetic, intelligent support staff, great technical and back-office support, a full complement of experienced, successful agents and a broker who focuses on running the office and not competing with her agents, we really feel we’ve hit the jackpot at C21. Howie and I have experienced great success at every place we’ve worked, but in our opinion it was all thanks to our own discipline and work ethic. At Century 21 we truly feel we have a team behind us that will enable us to serve our customers even better, and to work more efficiently and that will lead to continued success.
Craig
That is the most ridiculous reply I have ever read. Do you believe there will be any week in July with 29 closings based on weekly Dabos during the last month. How far in the sand do you bury your head when there is available data? Are you insisting you cannot predict the months of inventory in July based on expected July sales? If unexpectedly (LOL) there are only 25 closings in July will that be “Evidence” of potential lower prices in the future?
The high amount of closings was due to nothing else but a rush to close and capture the tax credit (You know the one that homebuyers in Hoboken do not use).
@JT – it’s a less than perfect system. We are supposed to report any change in status within 24 hours or we can be fined but that’s not very well enforced. Let me give you an example of the issue:
The property is out of attorney review on June 1. Once it’s out of attorney review it should be changed to DABO. Sometimes, though, the buyer doesn’t have to pay their initial deposit until 10 days after attorney review depending on what the sales contract provides. The listing agent could be hesitant to dabo the listing until those funds are received (that is the “deposit accepted by owner” – DABO) in case the deal falls through. That’s one possibility.
It’s also possible that the agent simply forgets. Either way, he reports the DABO into the MLS June 24 but enters the actual contract date, let’s say June 14.
When I search for DABOS that took place Wed. to Wed. for the week of June 16th the DABO doesn’t show up because it hasn’t been entered into the MLS yet. When I search for the week of June 22 it doesn’t show up because while it was physically entered into the system that the date entered was earlier than that week. So some dabos simply fall between the cracks.
I saw a sale this week that was reported as May 17 instead of June 17 although I happen to know that the deal closed on June 17. Simple agent error. Yet that sale isn’t on this weeks report. I know another deal that closed the same week, (same agent too), still shows as dabod. As much as I’d love to “fix” these cases and have everything be 100% accurate, I just don’t have the time to police every agent’s reporting. That is the job of the MLS people. In the bigger picture, it’s not too significant.
1022 Hudson was dabod and shows a contract date of May 26 and a closing date of July 8th. The closing date is per the contract and can certainly change. When it actually does close, there is nothing to really force the agent go back and correct the closing date either.
If the S&P500 hits 950…what you do think will happen to prices and inventory? Thoughts anyone? Does the stock market influence buyers and sellers?
Very interesting – thanks for the insight Lori. And thanks for the amazing work with this site. Super informative and well presented!!
UPenn
Well wealth definitely affects housing. S&P at 950 likely reduces wealth 10%, unless everyone is super smart and shorts or is in cash.
I think what the last month of Dabos has illustrated is that there is little demand for housing at current asking prices unless the government is supplying your down payment and guaranteeing the mortgage. Now that they are only doing one of the prior offers are through the floor.
In conclusion, There is a lot of “Evidence” prices will decline with stable stock values. Lower stock values is just another whole in the titanic.
Thanks JT.
Big dollars on a lot of the closings! Wow – love the crashing prices?!? Keep predicting…..
Whynot
When you drive do you solely look out of your rear view mirror too? Amazing what the tax credit did, even though no one in Hoboken took advantage, LOL.
Prices were rising in 2005 and 2006, what happened next. Noe they are not even rising just being propped up by a tax credit.
It’s tough to see how today’s prices are justified. At $300 sq/ft Hoboken is still overpriced, in my opinion. I would think banks are catching on and will make it even tougher to get a loan. That said, it could take a very long time for prices to reach their correct level. Japan is down 80% over the course of 20 years and it has yet to start going up.
Well not to sound like a bull, but a couple of things morally right
Hoboken incomes are pretty close to supporting $300/sq ft. I think most prices right now are closer to $400+/sq ft. The drop would be over 25% which seems about right to me.
Banks do not make mortgages, the government does. As of right now the government does not have any desire to stop lending in Hoboken at $400 or more per square foot.
Japan is down 80% over the course of 20 years???????????
Whynot,
Yes both stocks and home prices are down around 80% in Japan from their peaks 20-ish years ago. Google it.
we popped!
“JAPAN suffered one of the biggest property market collapses in modern history. At the market’s peak in 1991, all the land in Japan, a country the size of California, was worth about $18 trillion, or almost four times the value of all property in the United States at the time.”
our values are not greater than the rest of the big cities around the world….
Nikkei peak was ~39,000….today its sub 9,400. Guessing most long term Japanese equity investors were/are weighted avg down somewhere in the 15k – 25k range. A lifetime of investing and nothing to show for it. Besides asset bubbles aftermath, Japan continues to suffer from poor demographics. The population is slowly dying off. Future generations just are not there to bid for real estate and equities.
For those that say Hoboken prices are too high….what is the “right’ price? Shorts is at $300/sq ft. Anyone else?
One thing that is not mentioned is the effect of household debt (as a percent of GDP) on prices. In the US it is now over 100%. In Japan during the height of their bubble it was less than 50%.
Now that most in the US realize they were living above their means that is a lot of deleveraging that needs to take place and is likely to impact prices.