Categories: Hoboken Condos
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:
- 327 active Hoboken condo units – vs. 314 last week
- 10 DABOs (Deposit Accepted By Owner i.e. under contract) vs. 13 dabos last week
- 23 sold vs. 6 sold
- 38 new listings vs. 9 (13 of the new listings are new units at Maxwell Place listed on the MLS by Toll Bros.)
- 21 price changes vs. 6
- 5 expired listings vs. 2
Studio & 1 Bedroom Hoboken Condos:
15 new listings
- 410 Jeff 1R listed on Jun 15 for $190k
- 422 Mad 4L listed on Jul 21 for $209k; reduced Aug 4 to $200k
- 222 Willow 5A listed on May 11 for $370k; reduced on May 26 to $350k
- 800 Jackson PH11 listed on Jul 26 for $369k
- 1500 Hudson 9D listed on May 4 for 500k; sold for $485k
- 551 Observer 8G listed on Apr 8 for $320k; sold for $292.5k
- 312 Mad 2A listed on Feb 11 for $380k; sold for $362k
- 1125 Maxwell 712 listed on Feb 2 for $566k; reduced Mar 17 to $555k; Oct 17 to $540k; sold for $510k
- 1010 Willow #1 listed on Apr 1 for $439k; sold for $446k
- 609 Jeff 3D listed on Mar 29 for $359k; sold for $330k
- 126 Monroe 4A listed on Mar 1 for $329k; sold for $310k
10 price reductions
130 Total Active 1BRs
Two Bedroom Hoboken Condos:
21 new listings
- 209 8th St #1 listed on May 2 for $499k; reduced Jun 6 to $489k
- 627 Willow #2 listed on Jul 1 for $322k
- 1500 Hudson 12M listed on Mar 9 for $799k; reduced Jun 13 to $779k
- 601 Observer 501 listed on Jul 11 for $599k
- 620 Monroe #1 listed on Jun 15 for $559k
- 610 Newark 10A listed on Jun 6 for $550k; reduced Jul 8 to $535k
- 815 Wash #2 listed on May 13 for $559; reduced May 31 to $525k; sold for $510k
- 224 Hudson 5A listed on Feb 24 for $519k; sold for $519k
- 531 park #3 listed on Apr 8 for $389k; sold for $381k
- 1300 Grand 517 listed on May 5 for $550k; reduced Jun 15 to $540k; Jun 16 to $535k; sold for $520k
- 700 1st 2E listed on Apr 28 for $449k; sold for $435k
- 729 Wash #2 listed on Mar 31 for $335k; sold for $320k
- 109 Harrison #305 listed on Jan 5 for $690k; reduced on Mar 21 to 675k; sold for $655k.
- 222 Grand 2A listed on May 21 for $500k; sold for $515k.
- 708 Grand #1 listed on Feb 21 for$700k; sold for $665k
- 556 1st #9 listed on Apr 5 for $395k; sold for $375k
- 1500 Garden 4B listed on Apr 7 for $689k; sold for $680k
- 1125 Maxwell #909 listed on Dec 28 for$960k; sold for 928k
- 1025 Maxwell #1106 listed on 3/23 for $$850k; reduced on May 10 to $835k; sold for $812.5k
9 price reductions
162 Total Active 2BRs
Three Bedroom and Larger Hoboken Condos:
No new listings
- 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
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!