No surprises here – the June sales results show exactly what I’ve been saying here for weeks – there is no inventory in Hoboken. Sales prices are starting to pick up. The bottom has come and gone.
Of note – look at the number of days it takes from the time a property hits the MLS for sale and the day it goes under contract. That number has fallen from 84 to 65 to 47 to 36. That is a drastic drop in 4 months. It is 51% lower than it was a year ago.
Closely related to how quickly things are going under contract is the fact that the price at which they are selling is very, very close to the list price. The ‘discount off list’ is only about 2%. That’s less than half of what it was a year ago. For the past several weeks, every property on which my buyers have bid there have been multiple offers. Bidding wars (I really despise that name) are once again the new normal.
When there is limited inventory on the market and buyers are in buying mode, expect mutiple bids and expect them to be at or over asking price. Now, this does not happen on every single property. The quality properties – the good ones which show well and are in good locations – you bet there is someone who wants it besides you!
Absorption rate measures how quickly the current ‘for sale’ inventory would sell out at today’s sales volume rate. We’ve got just barely over 3 months of inventory right now. That is a strong indicator of a seller’s market. There are no signs that this is a temporary fluke or that it will change any time soon. The rate of sales has been increasing – we went from just 30 units in January to 74 in June. The rate of properties going under contract is also up in the 70s.
Average sales prices were higher last month than this month due to a few extremely high-priced properties that closed in May. But look at the median numbers! Substantial increases all around and median price per square foot is 14% stronger than it was last June. Enough said – you get the picture. Here are the numbers: