January Hoboken Condo Sales Results
I have a new format for the monthly condo sale numbers. I hope you like it. The first chart shows this January versus last January and the percentage change year-over-year. The second chart breaks this months results down by condo size so there is a column for studio and 1 bedroom condos, one for 2 bedroom condos and the last for 3 bedroom and larger condos. I think it’s interesting to look at the market this way. The supply of three bedroom and bigger units so drastically smaller than the others. Meanwhile the number of families looking for larger properties keeps growing. Have you seen the census results?
There is no question from the above that prices in general are down from last year. The light at the end of the tunnel may be that the number of new units hitting the market is also way down – by more than half – yet the pace at which they are selling seems to be constant. Recovery in housing is all about soaking up the unsold inventory. We may be doing that here in Hoboken.
Looking at the second chart, I find it interesting that the price per square foot seems backwards. Typically one would pay more per square foot for a small condo and less for a big condo. The theory is that there is a point of diminishing returns for the extra space so the extra size is cheaper than the bare minimum. Here that’s not the case. I think that goes back to my point that there are a dearth of large condos for sale in Hoboken but a big demand for them. I think it also is influenced by the quality of those apartments. The older, more run down properties that just don’t sell tend to be in the small 100+ year old buildings that were converted to condos from rentals. Odd floor plans, narrow living rooms, flights of stairs and lack of amenities has caused the price of these properties to take more of a hit, in my opinion, than the new construction condos that offer parking, elevators and gyms.
Please let me know what you think. Do you like the new format? Shoot me an email at [email protected] or fill out the little pop up box at the bottom of your screen.