2010 Aug 18th

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

Hoboken Condos Sales & Activity – Week of August 17th

The Future of US Housingreality check

Freddie Mac, Fannie Mae and the FHA currently guarantee 90% of all home mortgages. Yesterday in Washington a conference on the future of the US Government’s role in the housing market and the roles of Fannie Mae and the other GSEs made it clear that things are going to change. Tim Geithner said “”There is a strong case to be made for a carefully designed guarantee in a reformed system, with the objective of providing a measure of stability in access to mortgages, even in future economic downturns,” but the Secretary of HUD wants the government’s footprint to be much smaller than it is presently. Bill Gross, who runs Pimco, the world’s biggest bond fund and among the largest holder of US-backed mortgage securities, on the otherhand, urged for full nationalization of housing finance. He doesn’t believe it possible for the private market to ever come back. The co-president of Wells Fargo Home Mortgage, Mike Held, said “The policy challenge will be “how to marry this government guarantee with the maximum use of private capital in a way that minimizes the risk to the taxpayer, encourages competition, and ensures no one institution is too big to fail,” Heid said.The policy challenge will be “how to marry this government guarantee with the maximum use of private capital in a way that minimizes the risk to the taxpayer, encourages competition, and ensures no one institution is too big to fail,” Heid said the policy challenge will be “how to marry this government guarantee with the maximum use of private capital in a way that minimizes the risk to the taxpayer, encourages competition, and ensures no one institution is too big to fail.”   Taxpayers have paid for about $150 billion in aid to rescue Freddie & Fannie. Should this continue?

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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.

Studio & 1 Bedroom Hoboken Condos:

10 new listings

189 active

5 Dabos

None Sold

8 price reductions

Two Bedroom Hoboken Condos:

12 new listings

257 total listings.

3 Dabos

7 sold

13 price reductions

Three Bedroom and Larger Hoboken Condos:

3 new listing

51 active listings.

1 Dabo

1 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 info@hobokensbest.com 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. stan

    thanks as always LT.

    224 bloomfield well below 2005 price, surprised by that as I believe it is in Thought’s circle of solitude. :) it also has two parking spots which is nice.

    Also, 80 park seems to me as one of the bigger drops in the path area, 28% under 2004 price? interesting week.

  2. whynot

    stan my man – you’re interesting – what was 224 in 2005? it seems like a pretty high price!?!

  3. homeboken

    224 Bloomfield Unit 4 –

    Sold $668,000 this week
    Sold $752,500 Sep 2005
    Sold $489,000 Aug 2002

  4. lori

    From the photos it does not look like it showed very well. I think the 2 indoor parking spots are key as they are rare so far downtown.

  5. whynot

    stan my man – 668K – far from a bath!

  6. stan

    Whynot: 11 % under 2005 pricing is an enormous loss. It effectively puts this property in 2004 range.

    And 70K + carrying costs+ transaction costs is not an insignificant amount of money, after five years of ownership.

    It appears you are counting your pennies for a purchase, I imagine 100,000 would affect your situation.

  7. homeboken

    I am surprised to see that the vast majority of the sales this week are under $400,000, only 2 sold above that. Add the dabos to that and I am seeing a pretty clear indication that the higher end market is struggling mightly. Lori – Any input on this? Is this just an anomoly or do you think that buyers are focusing on true “starter” type units?

  8. patk14

    Stan, I think Whynot would be crying her little eyes out if she had purchased that unit in Sept 2005. Probably would be calling her congressman about how unfair it is that her bank will not reduce the principal balance to allow her to avoid taking that huge loss.

    What an unbelievable increase on it from Aug 2002 to Sept 2005, a 54% increase on a leveraged investment in a little over 3 years. ROE must have been incredible. Assuming a 20% down payment ($97,800), they earned 269% on that equity by buying when the bubble was forming and selling right near the top.

  9. Tiger

    Clearly a big loss (11% of such a big number). However, just wanted to point out that unless this seller is no longer going to buy a home, it’s not as big of a disaster it is.

    Chances are this person is moving out of Hoboken, and wherever they are going to probably has seen bigger decline than Hoboken, so just like they lost $100K on this home, they probably saved more than that on their new home.

    It also goes the other way: In a healthy market, whatever appreciation you got from your unit will probably be more than wiped out by the increase of price of the more expensive unit you are about to buy.

    I think there are only a lucky few who get the timing right; a friend of mine bought in 2004, sold in 2006 as his job was moving him outside the country. Returned to the US in 2009, can we say, lucky?

  10. morally_right

    $100K is not a small amount to lose but the bigger loser might turn out be the person who just bought the place.

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