The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of August 17th
Categories: Weekly Wednesday Wrap Up
Hoboken Condos Sales & Activity – Week of August 17th
The Future of US Housing
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?
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.
- 497 active Hoboken condo units – vs. 503 last week
- 9 DABOs (Deposit Accepted By Owner i.e. under contract) vs. 14 dabos last week
- 6 sold (0 short sales) vs. 18 sold (0 short sales) 11 reported
- 25 new listings vs. 24
- 23 price reductions vs 24
- 11 expired listing vs. 7
Studio & 1 Bedroom Hoboken Condos:
10 new listings
189 active
5 Dabos
- 501 9th (mls) listed for $400k on Jul 6; reduced to $395k on Jul 15.
- 917 Willow (mls) listed for $335k on Jul 21.
- 625 Willow (C21) listed for $319k on Jun 8.
- 80 Park (mls) listed for $349k on Jul 26.
- 300 1st St (mls) listed for $325k on Jul 22.
None Sold
8 price reductions
Two Bedroom Hoboken Condos:
12 new listings
257 total listings.
- 188 up to $600,000
- 69 $600,000 and over
3 Dabos
- 214 Park (mls) listed for $449k on Aug 2.
- 818 Jeff (mls) listed for $495k on Map 28; reduced to $489k on May 18; $479k on Jun 1.
- 1025 Maxwell (mls) listed for $809k on Feb 10; reduced to $800k on May 12.
7 sold
-
151 2nd St. (mls) listed for $424k on May 10; sold for $399k.
- 1015 Grand St. (mls) listed for $395k on Mar 18; reduced to $375k on May 20; sold for $350k.
- 253 10th St. (mls) listed for $370k on Mar 11; sold for $355k.
- 261 12th St. (mls) listed for $380k on May 13; sold for $373k.
- 416 Grand St. (mls) listed for $539k on May 5; sold for $521k.
- 41 1st St. (mls) listed for $400k on Feb 10; reduced to $380k on Mar 23; $360k on May 11; sold for $350k.
- 224 Bloom (mls) listed for $790k on Apr 22; reduced to $749k on May 5; sold for $668k.
13 price reductions
Three Bedroom and Larger Hoboken Condos:
3 new listing
51 active listings.
1 Dabo
- 304 Hudson (mls) listed $500k on May 7.
1 sold
- 700 1st St. (mls) listed for $515k on Jul 30; sold for $440k.
2 price reductions
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Thanks for reading and, as always, we welcome your comments!
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.
stan my man – you’re interesting – what was 224 in 2005? it seems like a pretty high price!?!
224 Bloomfield Unit 4 –
Sold $668,000 this week
Sold $752,500 Sep 2005
Sold $489,000 Aug 2002
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.
stan my man – 668K – far from a bath!
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.
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?
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.
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?
$100K is not a small amount to lose but the bigger loser might turn out be the person who just bought the place.