The August results are in and the story is a simple one – there is simply nothing to buy. This is a story being played out in markets across the country but I have a feeling, Hoboken is a prime example of inventory shortage.
NAR reports that median days on market is a metric for inventory. NAR statistics show median days on market is down 29.6 percent from a year ago, from 98 days in July 2011 to 69 days in July 2012. Hoboken’s median days on market right now is 33. NAR also says that a 6 month supply of inventory represents a balanced market. Hoboken has 2 1/2.
Take a look at the rest of the numbers:
There are a few things here I find shocking – average sales price up 10% over last year, for one. Median sales price up 14%. Sales activity is up, inventory is down and prices are rising.
There was quite a bit of discussion on the HobokenMoms yahoo group about why families leave Hoboken. Is is the schools or something else? The fact that the average 3 bedroom is now $800,000 is some pretty strong evidence that Hoboken has become an expensive alternative to the suburbs. One can get an extremely nice house in Millburn for 800k. Of course, giving up the 5 minute commute to the center of the universe is the trade-off that comes with that house but many out there will make that trade.