2011 Aug 10th

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

Interest Rates, Downgrades and the Fed . . . Oh My!

Here is a little intro written at my request by William Kumpf.  I think it is helpful to see things from a different point of view occasionally.  When a reader of this blog requested a post on interest rates, I requested one of my colleagues in the mortgage industry to contribute his point of view:

Yesterday was Fed Day.  Another national holiday my company does not observe?  No quite.  It’s the day the Federal Reserve released their Interest Rate Decision and Policy Statement. Here is why you should be paying close attention.

The role of the Fed, among other things, is to provide stability in our financial markets.  At 2:15pm yesterday, the Fed acknowledged what most everyone already knew – that the US economy is growing much slower than expected.  What the Fed did in response, however, was important.  They announced a policy of keeping interest rates low through at least the middle of 2013.

What about the S&P downgrade of US debt?  For practical purposed, the downgrade by S&P on August 5th was a virtual non-event.  Treasuries surged Monday after the S&P announcement.  A sell off in the stock market sent investors seeking cover in the safety of government debt.  Yes, I said it – safety in government debt.  S&P is only one of three agencies that rate our best and despite the S&P downgrade, Moody’s Investors Service and Fitch Ratings have affirmed the credit-worthiness of US debt with the highest rating of AAA.

So does the Fed decision mean lower rates for homeowners and home buyers?

Not necessarily.  While the Fed sets the Federal Funds Rate, which affects things like credit card rates and home equity lines of credit, the Fed does not control mortgage rates.  What we can expect from this market is continued volatility. As a strategy for homeowners, right now is an ideal time to lock in a low rate for a refinance or for buyers to finance the purchase of a new home.  After the Fed announcement, yields on 10-year notes touched all time lows of 2.0346 percent, lower than the previous record set back in 2008. In short, these are complicated and unpredictable financial times.  The advice of professionals can be invaluable.

This Week’s Condo Sales & Activity:

Studio & 1 Bedroom Hoboken Condos:

15 new listings

4 dabos

7 sold

10 price reductions

130 Total Active 1BRs

Two Bedroom Hoboken Condos:

21 new listings

6 dabos

14 sold

9 price reductions

162 Total Active 2BRs

Three Bedroom and Larger Hoboken Condos:

No new listings

no dabos

2 sold

  • 315 Monroe #4 listed on June 6 for $367k;  sold for $345k
  • 306 6th St. #4 listed on Mar 4 for $899k;  sold for $899k

2 price reductions

36 Total Active 3BRs

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 see 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  list.

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

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

  1. mona

    there are no links today.

  2. Lori Turoff

    Was fixing something so it might have been down. Fill out the little form – you’ll get the links.

  3. Rich

    What happened to 315 Monroe? That looks like a blood bath for what based on pictures appeared to be a decent property of good size.

  4. roseanne lynch

    you have incorrect prices on 1500 garden street apt 4B… i believe it is a large one bedroom with den…. was on the market for around 680,000…. you reported it listed for 395K and selling for $ 375 K…. this is incorrect

  5. Lori Turoff

    Thanks, Roseanne. I had all my lines off by one. It happens. It is all corrected now. Sorry about that folks.

    315 Monroe – it was an estate sale. The listing agent sold it himself to his own buyer with 1 day on the market. I can’t help but wonder, if dual agency was not allowed (as it’s not in most states) if that estate would not have gotten way more for that property. It was sold for $245 per square foot. That’s about 45% below market rate. You know what we call sales like that (among other things) – comp killers. It hurts everyone in the building and everyone in the market to sell a unit below it’s true market value. And don’t tell me that the price is the true market value. Show me that it was marketed – that multiple potential buyers had the opportunity to see the property and bid on it – before I will believe that.

  6. Tiger

    I for one don’t believe too much trouble in the US economy growing slowly. Maybe this is the natural pace of things? For decades this country has been recovering from one bubble by artificially inflating another, maybe this time around there is no bubble to artificially make our economy grow at 20% per year?

    I know it is painful, but you know what? We’ve been surviving. Maybe our net worth would be higher if the economy is better, but we are doing very well overall.

  7. morally_right

    $245/ sq ft may represent the amount the seller could get if he wanted/needed to sell immediately. Who knows if that in fact was the case. But clearly there should be a discount for a forced seller who wants cash ASAP. In any case, agreed that $245 sq/ft might very well make potential buyers not want to consider $400 sq/ft.

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