2010 Aug 11th

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

Hoboken Condos Sales & Activity – Week of August 10th

Some interesting events in Hoboken this week. First of all, today is the 11 year anniversary of adopting our dog, Sempai, by far the best thing we’ve ever done. If you’re thinking of getting a pet please consider rescuing one from a local shelter. sempai day Cammerano got two years in jail, local real estate lawyer Tom Foley was arrested by the FBI for bank fraud, the line at Carlo’s continues to grow and there were 14 dabos – not bad at all. Few of the dabos and sales needed price reductions to get sold – maybe sellers are finally getting it and pricing right while buyers realize that historic low interest rates, I mean, come on, UNDER 4.5% for crying out loud, make it a good buying opportunity. Even if prices were to go a smidgen lower, a 50 basis point jump in your mortgage rate would quickly wipe out any savings.

Disclaimer: The data relating to real estate transactions on this web site comes in part from the Hudson County MLS. While some of these listings are, in fact, our listings they are not ALL our listings nor do we hold them out as such. Century 21 Listings are identified with “C21″ after the address. Other listings are from the MLS and are identified with “MLS” after the address. Information is deemed reliable but not guaranteed.

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Studio & 1 Bedroom Hoboken Condos:

2 new listings

192 active

4 Dabos

1 Sold

12 price reductions

Two Bedroom Hoboken Condos:

15 new listings

258 total listings.

6 Dabos

5 sold

7 price reductions

Three Bedroom and Larger Hoboken Condos:

7 new listing

52 active listings.

4 Dabos

3 sold

2 price reductions

Hoboken Condo Open Houses

If you are in the market for a Hoboken condo, our Hoboken Open House Google Map is your best source for locating every open house in Hoboken. It is the single, most complete listing available and we were the first ones to do it. We compile the information by hand from all possible sources to provide you with all the information you need in one spot. It’s posted on Friday every week.

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 [email protected] letting us know which size(s) you would like and we’ll add you to the daily email list.

For more information you can always contact us at 201 993 9500.

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

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  1. homeboken

    Rates at 4.5% are what is helping keep prices where they are Lori. A 50 basis point jump in prices will certainly affect demand, and thus leade to reduced prices. Why do you assume that prices are sticky with respect to rates?

  2. Lori

    Isn’t that circular? If rates go up it may drive demand down but won’t lower priced drive it back up?

  3. homeboken

    Yes it is circular, but I contend that a 50 basis point jump in rate will not “quickly wipe out any savings” as you state.

    I am thinking that a 50 basis point jump in rate will result lower price, affecting the Seller. The monthly cash outflow of the buyer will remain neutral since they will adjust bids downward.

  4. Craig

    Homeboken – regardless of rates, prices are sticking because sellers are only willing to go but so low. If they can’t sell without losing their shirts, they are renting the units out until the market improves. Unlike other communities, very few homeowners in Hoboken are financially distressed to the point where they must sell immediately. That’s why you see relatively few foreclosures and short sales here. The rental market here is strong, so it’s easy to rent out one’s unit. Even if the rent doesn’t cover all the monthly carrying charges, it’s better to eat $200-300 a month than tens of thousands of dollars.

  5. homeboken

    Craig – I agree, the ability to rent out a unit for a solid monthly rate helps support prices. But an increase in rates will result in a reduction in loan demand. The only way to counter-act this decreased demand is 1. lower prices 2. rate reduction 3. other stimulus (tax credit etc)

  6. homeboken

    To add – The Fed yesterday indicated that long term rates will remain low for an extended time frame. I am simply stating that would be buyers need not worry about rates spiking and getting caught. The Fed has no economic incentive to raise base rates until solid economic recovery is established. That is likely 24 months away at least.

  7. Craig

    Homeboken – The demand for housing in places like NYC and Hoboken is very strong. People will pay what they have to pay to live here. Decreased demand for mortgages is a short-term problem that most sellers here can wait out. If rates go up then places may sit longer, but the desirable ones will sell eventually without huge price reductions. If not, then the home is rented out thanks to that same housing demand in this area. Either way, homeowners are in better shape in this area than most others because they can afford to wait out the market for the aforementioned reasons.

  8. Lori

    I’m with Craig on this one 100%.

  9. carl

    4.5% interest rate means nothing with 9.5% UNEMPLOYMENT. People are afraid of losing their jobs. By the way those highly desirable maxwell and hudson tea properties are really moving fast. Oh and dont mind the 500 units sitting on the market. Hoboken will be sub $ 400 a sqft at end of year

  10. shortsequalmarket

    Well good to see Dabos recover. The Hoboken market is almost completing and average of 10 per week now.

    Craig, the good old everyone wants to live here argument. How did that work out for tropical Miami (with no income taxes) or Phoenix home of rich retirees (and the list goes on). At the end of the day the most important thing is the financial stability of the area. NJ/NY has done very well as home of one of the only industries growing in the US (Financial Services(FS)). However, the large growth that occurred with FS during the last 25 years is petering out. Once financial reform is fully implemented the industry may even shrink.

    And I fully disagree on the wherewithal of sellers. The North Jersey market stumbled later than others. By the time the North Jersey market stumbled the combination of Obama initiatives and an already lengthy foreclosure process has propped up the market (even though it declined). This is not evidence that sellers can wait for an higher price.

    Lastly I am far from convinced that local governments will not be able to find enough loopholes to ramp up property taxes (in absolute dollar terms), thereby ramping down property values.

  11. morally_right

    People in this area have been doing far better than the rest of the country. At least the top-earners.
    But just imagine high unemployment for the next 5 to 10 years and every January, Wall St announcing huge bonuses?? Something in this picture is not going to work.

  12. UPennAlaskan

    Mortgage demand is actually very high. People want new mortgages. However, very few are able to refi as so many poeple are underwater. The lenders don’t want to take on that risk and borrowers don’t have the cash to bring to the table if they are upside down. Renters that would be great home owners are afraid of losing their jobs. That is a major barrier of taking out a new mortgage to purchase a home.

    THE MOST IMPORTANT COMMODITY RIGHT NOW IS A “JOB”.

  13. whynot

    where’s shortsequalmarket on this one? What a nonsensical name?!?

    WHERE ARE ALL OF THE SHORTSALES IN THE WORST MARKET??

    Oh wait, this is a desirable and affluent area! odd?!?

  14. Tiger

    Speaking of Cammarano it really surprises me how little coverage we got of the scandal, and I don’t mean only his, but the whole network; other polticians, corrupt Rabbi’s (who traded body parts), etc etc… It’s like the story disappeared a week after it broke last year…

    Things that make you go hmmm…

  15. homeboken

    From todays NY Times:

    http://www.nytimes.com/2010/08/12/business/12debt.html?_r=1&src=me&ref=business

    “Eric Hairston plans to be among this group. During the boom, he bought as an investment a three-apartment property in Hoboken, N.J. At the peak, when the building was worth as much as $1.5 million, he took out a $190,000 home equity loan.”

    “The building was sold this spring for $750,000. Only a small slice went to the home equity lender, which reserved the right to come after Mr. Hairston for the rest of what it was owed.”

    I have never seen an article that mentions Phoenix AZ and Hoboken in the same breath. I know things aren’t as bad here as they got in AZ, but this is not the best selling point for Hoboken RE.

  16. patk14

    Some people honestly believed that real estate, especially real estate near Manhattan (“they aren’t building any more land”), would never go down in value. This after values doubled from the mid-90’s to 2000 and then doubled again by 2006 in Hoboken. They made huge highly leveraged bets and then stuck their lenders with the losses. Wonder how he spent that $190 thousand home equity loan? Did he buy more real estate or a status car or two?

  17. homeboken

    The Pheonix guy has a quote in there that is so mis-guided when presented in the context of the article.

    “I was taught in real estate you use leverage to grow.”

    There is a second part to that axiom that is pretty critical. You need to be able to service that leverage in perpetuity, otherwise, you get exactly the scenario in the article. Walk away, “I won’t be a slave to the bank.” He says. Brilliant, just don’t expect anyone to ever lend you another dime again, Ever.

  18. Craig

    The moral of that NY Times story is that those of us who are solvent and can service our debts should invest in rental properties pronto. There are a now a whole lot of people out there who will never be able to buy property again and are now permanent renters. On the other hand, as their Landlord you’d have to worry these deadbeats would skip out on their rental obligations too.

  19. homeboken

    Craig agreed. I am biased since my career is in the multi-family housing industry, but all the data I am seeing points to a nationa wide rental housing deficit by mid 2011. When credit dried up 2 years ago all shovel ready projects were shelved. There has been so little new rental development in the last two years. Demand for rentals is about to go parabolic and there is not sufficient supply to meet the demand.

  20. lori

    And yet I keep reading articles that say even if you walk away and do a short sale, let’s say, your credit isn’t badly hurt and you can get another mortgage and other loans in only a few years. Doesn’t seem fair.

  21. Craig

    Lori, there are many articles saying different things, and many of them are wrong. The fact is a short sale hits your credit just as much as a foreclosure. Both stay on your record for 10 years. Fair Isaac released a report on the average affect of various defaults on the typical FICO score:

    – 30 days late: 40 to 110 points
    – 90 days late: 70 to 135 points
    – Foreclosure, short sale or deed-in-lieu: 85 to 160
    – Bankruptcy: 130 to 240

    There is one way in which a short sale impact is a little less harmful to creditworthiness: You will have to wait 24 months get a lender to talk to you with a short sale on your record, but it’s 72 months with a foreclosure. Keep in mind however that while you might be offered a loan at that point, the high-risk interest rates that would be offered would be unaffordable for most.

  22. JC

    Craig….those numbers seem fair…but keep in mind that many have piggy back mortgages or home equity loans on top of the First morgtgage. Take your numbers and add another 50 points for the secondary debt.

  23. patk14

    I’m certain that people like Eric Hairston will feel that it is unfair that they can’t get a mortgage. Maybe Barney Frank will pass a law forbidding financial institutions, especially those backed by the fed govt, from discriminating against those poor souls who, thru no fault of their own, purchased real estate at inflated prices.

    Seriously, with fewer people able to qualify for mortgages over the next decade, this will reduce the demand for single family houses and reduce their prices, all else being equal. People like Mr. Hairston will not be able to make leveraged “investments” in Hoboken. People might actually have to wait until they have 20% in cash before making the leap to purchase a condo. This will require deferring some of their present spending so that they can actually save some money each month, god forbid.

  24. Tiger

    I wouldn’t hold my breath on rental market, yet. We are still going through a phase were people are downsizing and compromising on their living arrangements (for example, more people are having roommates, moving back home with their parents, etc…).

    Again, goes back to jobs. Once people are secure about their jobs, they will probably start spending money on rent.

  25. carl

    Let’s all pray that Barney Frank does as little as possible

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